Foreign Investment Committee

Previously, acquisitions by Malaysians and foreign interests of 15% or more of the voting power in a Malaysian company are permitted subject to the equity condition that 70% should be held by Malaysians with at least 30% by Bumiputra. Foreign interests are restricted to 30%. Now the only equity condition imposed will be Bumiputra equity of at least 30%. Foreign interests will therefore be entitled to hold 70% equity in Malaysian companies either on their own or jointly with Malaysian interests. The requirement of at least 30% Bumiputra equity participation will be applied by all Ministries except where exemptions have been granted by the Government.

FIC approval is required where there is a proposed acquisition of assets or interests by Malaysian and foreign interests exceeding RM5 million. The threshold level is now raised to RM10 million instead of 5 million. For acquisitions exceeding RM100 million, companies can apply for exemption from FIC Guidelines, subject to the approval of the Minister of Finance and on a case-to-case basis. This exemption is given for applications received before 31 May 2004.

But now FIC approval is required where there is an acquisition by foreign and Malaysian interests of 15% or more of the voting power in a Malaysian company.

Foreign interests are permitted to acquire residential and commercial properties where the cost exceeds RM150,000 per unit instead of RM250,000.

Direct investment by foreign interests into Malaysian real property is permitted where the property is acquired from developers, either ready-built existing buildings or newly launched projects which are valued above RM250,000 per unit. The property covers all types of residential property, shop houses, office space and business space. These acquisitions may be locally funded.

Price of the House	RM 75,000.00
Housing Loan	RM 60,000.00
Difference Between The Price of the House and Housing Loan	RM 15,000.00
Additional 10% of the Price of the house	RM 7,500.00
Amount Eligible for Withdraw	RM 22,500.00
Balance in Account II	RM 18,000.00
Amount Can Be Withdrawn	RM 18,000.00

For this case, the member can only withdraw RM18,000.00, which is the balance in Account II. How to apply Members are required to submit KWSP 9C (AHL) form together with the necessary supporting documents.
Members are also allowed to apply under the Reducing or Redeeming Housing Loan Withdrawal Scheme for the same house every three years.