Understand the rules for foreign-owned industrial companies buying property in Malaysia—covering minimum pricing, state approvals, equity thresholds, and title restrictions.
Foreign-Owned Industrial Companies in Malaysia: What Property Rules Apply?
Malaysia welcomes foreign direct investment (FDI), especially in the industrial and manufacturing sectors. However, when it comes to acquiring industrial property, foreign-owned companies—whether MNCs or foreign-majority joint ventures—must comply with a set of property ownership regulations set by both federal and state authorities. This blog outlines the key requirements you need to know before buying factory land or warehouses in Malaysia.
Who Qualifies as a Foreign Industrial Buyer?
In Malaysia, a “foreign interest” includes:
- Companies incorporated in Malaysia with =50% foreign shareholding
- Foreign companies registered under the Companies Act 2016
- Non-citizen individuals or foreign-controlled trusts
If your company falls under any of these, the following property rules apply.
Minimum Purchase Price for Foreign Buyers
The federal baseline is that foreigners can only buy industrial property priced at RM1 million and above. However, this varies by state:
- Selangor: RM3 million minimum (selected districts only)
- Johor: RM1 million minimum, subject to zoning
- Penang: RM2 million for landed property
These thresholds apply to each lot or unit—not the total portfolio value.
State Authority Consent Is Mandatory
Foreign buyers must obtain prior approval from the respective State Authority (Pihak Berkuasa Negeri). This usually involves:
- Submitting Form 14A with supporting documents (company profile, board resolution)
- Meeting zoning requirements (industrial use only)
- Paying a consent fee (varies by state, RM10,000–RM50,000 typical)
In some states, specific zones may be off-limits to foreigners for strategic or national interest reasons.
Title Types and Usage Restrictions
Foreigners can typically purchase industrial properties with these titles:
- Freehold: Allowed, but harder to obtain in urban areas
- Leasehold: More common for industrial land (30–99 years)
- Individual Title / Strata Title: Permitted for factories, subject to state clearance
Some titles may come with caveats or restrictions-in-interest (Sekatan Kepentingan) that require periodic renewal or approval to transfer.
Common Legal Considerations
Foreign investors are advised to:
- Appoint a Malaysian panel lawyer familiar with state land matters
- Review the Master Title to confirm zoning and infrastructure
- Ensure compliance with environmental and usage regulations (e.g., EIA, DOE)
Start Your Search for Agricultural, Industrial, or Land Investment
- Explore Agricultural and Development Land for Sale
- Browse Industrial Properties in Rural Areas
- See Commercial Assets Supporting Agri-Supply Chains
Malaysia continues to attract foreign-owned manufacturers and logistics firms due to its strategic location, infrastructure, and skilled workforce. Understanding and complying with local property ownership laws is essential to securing your industrial footprint. With the right guidance, your company can confidently invest and grow within Malaysia’s vibrant industrial landscape.
