RESTRICTED
WORLD TRADE GATS/SC/52/Suppl.1
28July1995
ORGANIZATION(95-2223)
Trade inServices
MALAYSIA
Schedule ofSpecific Commitments
Supplement 1
(This isauthentic inEnglish only)
________________
This textreplaces theFinancial Services section contained inpages 28to52of
document GATS/SC/52.MALAYSIA -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
FINANCIAL SERVICES, INCLUDING INSURANCE
Horizontal Commitments Applicable totheFinancial Services Sector
Theoffers inthefinancial services sector areinaccordance withtheFramework Agreement onservices andtheAnnex onFinancial Services.
Thelimitations listed under theall-sector horizontal section shallnotapply tofinancial services, unless otherwise indicated.
Inrespect ofoffshore banks, commercial banks, merchant banks, offshore insurance andoffshore reinsurance companies, insurance companies
andrepresentative offices ofcommercial banks andmerchant banks, thefollowing conditions andlimitations onmarket access andmovement of
natural persons shallapply inaddition tospecific limitations totheactivity ofeachfinancial service asspecified ineachoffer.
ALL FINANCIAL
SERVICES(3) Limitations oninvestments as
contained intheall-sector horizontal
section.
(4) Limitations intheall-sector horizontal
section willapply when indicated in
eachactivity.(3) Limitations onlandandother
immovable property ascontained in
theall-sector horizontal section.
Unbound formeasures affecting
financial services accorded, toany
Bumiputera ortoassist development
ofanyBumiputera financial
institution toachieve objectives of
theNational Development Policy
(NDP).
(4) Limitations intheall-sector
horizontal section willapply when
indicated ineachactivity.
GATS/SC/52/Suppl.1
Page1MALAYSIA (continued) GATS/SC/52/Suppl.1
Page2
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
1. Offshore banks,
offshore insurance
andoffshore
reinsurance
companies(1),(2)Unbound*
(3) Entry isconfined toLabuan.
Entry islimited toestablishment of
abranch orasubsidiary
incorporated inMalaysia.
(4) None(1),(2)Unbound*
(3) None
(4) None
2.Commercial banks
andmerchant banks(1),(2)Unbound*
(3) The14wholly-foreign owned
commercial banks arepermitted to
remain wholly-owned bytheir
existing shareholders.
Unbound fornewlicences.(1),(2)Unbound*
(3) None except asindicated inthe
finance sector horizontal section
andintherespective activity listed
below.
*Due tolackoftechnical feasibility.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Entry islimited toequity
participation byforeign banks in
Malaysian-owned orcontrolled
commercial banks andmerchant
banks andaggregate foreign
shareholding inacommercial bank
oramerchant bankshallnotexceed
30percent. Shareholders bya
single person individually orjointly
withrelated persons islimited toa
maximum of20percent.
Acquisition byaforeign bankofan
aggregate of5percentormore of
shareholding inaMalaysian-owned
orcontrolled commercial bankor
merchant bankmust meetthe
following criteria:
GATS/SC/52/Suppl.1
Page3MALAYSIA (continued) GATS/SC/52/Suppl.1
Page4
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(i) Theforeign bankhasthe
ability tofacilitate trade and
contribute tofinancial and
economic development of
Malaysia;
(ii) Thecountry oftheforeign
bankhassignificant trade and
investment interests in
Malaysia; and
(iii) Thecountry oftheforeign
bankdoesnothavea
significant representation inthe
Malaysian banking industry.
Aninstitution owned orcontrolled
byaforeign government oran
agency ofsuchgovernment isnot
allowed tocontrol acommercial
bankoramerchant bankin
Malaysia.
Acommercial bankisnotallowed to
acquire anyshare inanother
commercial bankbutmayacquire
shares inonemerchant bank.
Amerchant bankisnotallowed to
acquire anyshare inacommercial
bankoranother merchant bank.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Other persons arenotpermitted to
acquire 5percentormore of
shareholding inacommercial bank
ormerchant bankiftheperson
already holds 5percentormore of
shareholding inanother licensed
financial institution.
Introduction ofanewservice
products willbepermitted subject to
approval which willbebased on
prudential criteria.
Entry isalsopermitted through the
setting upofrepresentative offices.
Representative offices canonly
undertake research, exchange of
information andliaison services.
GATS/SC/52/Suppl.1
Page5MALAYSIA (continued) GATS/SC/52/Suppl.1
Page6
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(4) Unbound except thefollowing:
(a) Unless otherwise specified,
temporary presence ofnatural
persons isoffered onlyin
respect ofsupply through the
mode ofcommercial presence.
(b) Forbanks, twosenior
managers foreachinstitution
withanaggregate foreign
shareholding exceeding 50per
cent. Asenior manager isan
individual possessing
proprietary knowledge and
authority essential tothe
establishment, control and
operation oftheservices of
thefinancial service supplier.(4) Unbound except forthecategories
ofnatural persons referred to
under market access.
(c) Specialists orexperts are
subject tomarket testand
eligibility criteria. Specialists
orexperts areindividuals who
possess knowledge and
expertise relating tonew
products andservices,
technique ormanagement of
thefinancial service supplier.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(d) Movement ofasenior
manager, specialist orexpert
canbethrough intra-corporate
transfers orotherwise.
(e) Forarepresentative office, two
foreign nationals. Only one
foreign national forthetwotop
posts.
(f) Entry shallbelimited toa
maximum period offiveyears.
3.Insurance companies (1),(2)Unbound*
(3) Branches offoreign insurance
companies arerequired tobelocally
incorporated andaggregate foreign
shareholding shallnotexceed 30per
cent.(1),(2)Unbound*
(3) None except asindicated inthe
finance sector horizontal section
andintherespective activity listed
below.
GATS/SC/52/Suppl.1
Page7MALAYSIA (continued) GATS/SC/52/Suppl.1
Page8
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
However, anaggregate foreign
shareholding upto49percentwill
bepermitted if:
(i) Branches offoreign insurance
companies incorporate locally
andtheshareholding structure
ofsuchlocally incorporated
companies reflects anaggregate
foreign shareholding ofnot
more than49percentby
30June1998.
(ii) Existing foreign-owned locally
incorporated insurance
companies which restructure to
reflect anaggregate foreign
shareholding ofnotmore than
49percentby30June1998.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Provided, intheevent ofsubsequent
disposal ofthe49percentorany
partthereof oftheforeign
shareholding after30June1998, the
disposal shallbemade toMalaysians
andaggregate foreign shareholding
shallnotexceed 30percent.
Unbound fornewlicences.
Entry islimited toequity
participation byforeign insurance
companies inexisting locally
incorporated insurance companies
andaggregate foreign shareholding
insuchcompany shallnoexceed
30percent. Shareholding bya
single person individually orjointly
withrelated persons islimited toa
maximum of20percent.
GATS/SC/52/Suppl.1
Page9MALAYSIA (continued) GATS/SC/52/Suppl.1
Page10
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Acquisition byaforeign insurance
company ofanaggregate ofmore
than5percentshareholding ina
locally incorporated insurance
company must meetthefollowing
criteria:
(i) Theforeign insurance company
hastheability tofacilitate trade
andcontribute tofinancial and
economic development of
Malaysia;
(ii) Thecountry oftheforeign
insurance company has
significant trade andinvestment
interests inMalaysia; and
(iii) Thecountry oftheforeign
insurance company doesnot
haveasignificant
representation intheMalaysian
insurance industry.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Aninsurance company isnot
allowed toacquire anyshare:
(i) Inanother insurance company
inMalaysia thatcarries onthe
same classofinsurance
business asthatcarried onby
it;or
(ii) Inaninsurance broking
company.
Other persons holding more than
5percentshareholding inan
insurance company arenotpermitted
toacquire more than5percent
shareholding in:
(i) Another insurance company
carrying onthesame classof
insurance business asthat
carried onbytheinsurance
company inwhich theperson
isashareholder; or
(ii) Aninsurance broking
company.
GATS/SC/52/Suppl.1
Page11MALAYSIA (continued) GATS/SC/52/Suppl.1
Page12
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(4) Unbound except thefollowing:
(a) Unless otherwise specified,
temporary presence ofnatural
persons isoffered onlyin
respect ofsupply through the
mode ofcommercial presence.
(b) Onesenior manager foreach
institution for:
(i) Insurance companies with
foreign shareholding of
more than30percent.
(ii) Branches offoreign
insurance companies.(4) Unbound except forthecategories
ofnatural persons referred to
under market access.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(c) Twosenior managers willbe
permitted foreachinstitution
for:
(i) Locally incorporated
insurance companies
where foreign
shareholding doesnot
exceed 30percent.
(ii) Branches offoreign
insurance companies
which incorporate locally
andshareholding
structure ofsuchlocally
incorporated companies
reflects anaggregate
foreign shareholding of
notmore than49percent
by30June1998.
GATS/SC/52/Suppl.1
Page13MALAYSIA (continued) GATS/SC/52/Suppl.1
Page14
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(iii) Foreign-owned locally
incorporated insurance
companies which
restructure toreflect an
aggregate foreign
shareholding ofnotmore
than49percentby
30June1998.
(iv) Branches offoreign
insurance companies
which incorporate locally
andshareholding
structure ofsuchlocally
incorporated companies
reflects anaggregate
foreign shareholding of
notmore than30percent
after30June1998.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(v) Foreign-owned locally
incorporated insurance
companies which
restructure toreflect an
aggregate foreign
shareholding ofnotmore
than30percentafter
30June1998.
(d) Asenior manager isan
individual possessing
proprietary knowledge and
authority essential tothe
establishment, control and
operation oftheservices ofthe
financial service supplier.
(e) Specialists orexperts are
permitted subject tomarket test
andeligibility criteria.
Specialists orexperts are
individuals whopossess
knowledge andexpertise
relating tonewproducts and
services, technique or
management ofthefinancial
service supplier.
GATS/SC/52/Suppl.1
Page15MALAYSIA (continued) GATS/SC/52/Suppl.1
Page16
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(f) Movement ofasenior manager,
specialist orexpert canbethrough
intra-corporate transfers or
otherwise.
(g) Entry shallbelimited toamaximum
period offiveyears.
A.BANKING AND
OTHER
FINANCIAL
SERVICES
EXCLUDING
INSURANCE
Acceptance of
deposits, andother
repayable funds
from thepublic,
wholesale andretail(1) Soliciting, advertising andacceptance
ofdeposits inMalaysia arenot
allowed.
(2) Soliciting andadvertising inMalaysia
foracceptance ofdeposits arenot
allowed.(1) None
(2) NoneMALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3) Only permitted through acommercial
bank, amerchant bankoranoffshore
bank.
Offshore banks inLabuan are
permitted toaccept foreign currency
deposits only.
Merchant banks areonlypermitted to
accept termdeposits from non-
individuals. Theminimum amount of
eachtermdeposit shallbeasspecified
bytheCentral Bank from timeto
time.
With effect from 1July1996,
foreign-owned commercial banks will
bepermitted toaccept foreign
currency deposits from residents
subject toconditions imposed on
designated banks.(3) Forcommercial banks, unbound for
branching (including off-premises
ATMs) andnetworking withATMs
inMalaysia.
Branching ispermitted formerchant
banks withanaggregate foreign
shareholding notexceeding
30percent.
(4) Unbound except asindicated inthe
finance sector horizontal section.(4) Unbound except asindicated in
thefinance sector horizontal
section.
GATS/SC/52/Suppl.1
Page17MALAYSIA (continued) GATS/SC/52/Suppl.1
Page18
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Lending ofalltypes,
including consumer
credit, mortgage credit,
factoring andfinancing of
commercial transactions(1),(2)Financial services associated with
lending toresidents inanycurrency
inexcess ofanequivalent of
RM$25million must beundertaken
jointly withcommercial banks or
merchant banks inMalaysia.(1),(2)None
(3) Entry asanon-bank forscheduled
businesses islimited to:
(a)Foreign financial institutions
through theestablishment ofa
locally incorporated joint-venture
company andaggregate foreign
shareholding insuchcompany
shallnotexceed 30percent; or
(b)Arepresentative office.(3) Foreign-controlled banking
institutions inMalaysia areallowed
toextend credit facilities (including
factoring andleasing uptoa
maximum of40percentofthe
totalcredit facilities obtained by
non-resident controlled companies
from banking institutions. The
above limitation willberelaxed to
50percentintheyear2000.
Provision offactoring services bya
commercial bankrequired thesetting
upofaseparate entity andshareholding
byaforeign-controlled commercial
bankshallnotexceed 30percent.
Merchant banks arenotpermitted to
provide consumer credit andhome
mortgages.Forcommercial banks, unbound for
branching (including off-premises
ATMs) andnetworking withATMs
inMalaysia.
Branching ispermitted formerchant
banks withanaggregate foreign
shareholding notexceeding
30percent.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Only commercial banks arepermitted
toprovide overdraft facilities.
Offshore banks arepermitted tolendin
foreign currencies only.
Representative offices canonly
undertake research andliaison services.
(4)Forbanks, unbound except asindicated
inthefinance sector horizontal section.
Fornon-banks, unbound except one
foreign national foramanagement post
which isnottheCEO post, foreach
establishment.
Forrepresentative offices ofscheduled
businesses, twoforeign nationals
subject toonlyoneforeign national for
thetwotopposts.
Entry shallbelimited toamaximum
period offiveyears.(4)Forbanks, unbound except as
indicated inthefinance sector
horizontal section.
Fornon-banks, unbound except for
thecategories ofnatural persons
referred tounder market access.
Residency requirements arerequired
forlending ofmoney.
GATS/SC/52/Suppl.1
Page19MALAYSIA (continued) GATS/SC/52/Suppl.1
Page20
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Financial leasing (1),(2)Leasing services toresidents inany
currency must beundertaken jointly
withleasing companies ormerchant
banks inMalaysia.
(3)Entry asanon-bank islimited to:
(a)Foreign financial institutions
through theestablishment ofa
locally incorporated joint-venture
company andaggregate foreign
shareholding insuchcompany
shallnotexceed 30percent; or
(b)Arepresentative office.
Provision ofleasing services bya
commercial bankrequires thesetting up
ofaseparate entity andshareholding by
aforeign-controlled commercial bank
shallnotexceed 30percent.(1),(2)None
(3) NoneMALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Aggregate foreign shareholding willbe
permitted tobeincreased to49percent
witheffect from 1July2000.
Representative offices canonly
undertake research andliaison services.
(4)Unbound except twoforeign nationals,
oneformanagement postwhich isnot
theCEO postandonetechnical post,
foreachestablishment.
Forrepresentative offices, twoforeign
nationals subject tooneforeign national
forthetwotopposts.
Entry shallbelimited toamaximum
period offiveyears.(4)Unbound except forthecategories of
natural persons referred tounder
market access.
GATS/SC/52/Suppl.1
Page21MALAYSIA (continued) GATS/SC/52/Suppl.1
Page22
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Allpayment andmoney
transmission services,
namely credit anddebit
cards, cheques and
bankers drafts(1),(2)Electronic fundtransfer system
requires approval.
(3)Offshore banks arepermitted toextend
payment andmoney transmission
services tonon-residents only.
Only commercial banks arepermitted to
issue credit cards, debit cards or
provide checking account services.
Only Malaysian-controlled banks are
permitted toissue, sellorpurchase
ringgit travellers cheques.(1),(2)None
(3)Forcommercial banks, unbound for
branching (including off-premises
ATMs) andnetworking withATMs in
Malaysia.
Branching ispermitted formerchant
banks withanaggregate foreign
shareholding notexceeding 30per
cent.
Saleorpurchase oftravellers cheques
byindividuals require citizenship
status.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Saleorpurchase offoreign currency
travellers cheques other thanby
commercial banks requires amoney
changer 'slicence. Entry islimited to
establishment ofalocally incorporated
joint-venture company andaggregate
foreign shareholding insuchcompany
shallnotexceed 30percent.
(4)Forbanks, unbound except asindicated
inthefinance sector horizontal section.
Fornon-banks, unbound except one
foreign, national management post
which isnottheCEO post, foreach
establishment.
Entry shallbelimited toamaximum
period offiveyears.Branching (including dispensers) is
permitted fortravellers cheques
companies withforeign shareholding
notexceeding 30percent.
(4)Forbanks, unbound except as
indicated inthefinance sector
horizontal section.
Fornon-banks, unbound except for
thecategories ofnatural persons
referred tounder market access.
GATS/SC/52/Suppl.1
Page23MALAYSIA (continued) GATS/SC/52/Suppl.1
Page24
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Charge cards (1),(2)None
(3)Entry islimited toestablishment ofa
company incorporated inMalaysia.
(4)Unbound except twosenior managers
foreachestablishment.
Entry shallbelimited toamaximum
period offiveyears.(1),(2)None
(3)None
(4)Unbound except forthecategories of
natural persons referred tounder
market access.
Guarantees and
commitments.
(Guarantees and
commitments undertaken
bynon-residents are
governed byrules
relating toexchange
control)(1),(2)None except banks established in
Malaysia maybegiven therightoffirst
refusal.
(3)None
(4)Unbound except asindicated inthe
finance sector andall-sector horizontal
section.(1),(2)None
(3)None
(4)Unbound except asindicated inthe
finance sector andall-sector
horizontal section.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Money andforeign
exchange broking
services(1),(2)Broking services, involving Ringgit
Malaysia andfinancial instruments
issued inMalaysia must beeffected
through authorized dealers andmoney
andforeign exchange brokers
incorporated inMalaysia.
(3)Entry islimited toequity participation
inexisting institutions andaggregate
foreign shareholding insuchinstitutions
shallnotexceed 30percent.
(4)Unbound(1),(2)None
(3)None
(4)Unbound
GATS/SC/52/Suppl.1
Page25MALAYSIA (continued) GATS/SC/52/Suppl.1
Page26
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Trading forownaccount
oraccount ofcustomers
inthefollowing:
-money market
instruments
-foreign exchange
-transferable
securities
-exchange rateand
interest rate
instruments
-derivative products,
including futures and
options
-other negotiable
instruments,
including bullion(1)Dealing islimited tocontracts traded
onspecified exchanges abroad.
(2)None
(3)Transactions byoffshore banks in
Labuan must beconducted inforeign
currencies, except forthesaleor
purchase ofcurrencies withauthorized
banks inMalaysia.
Transactions byoffshore banks in
Labuan forownaccount arelimited to
instruments created andissued abroad.
Trading foraccounts ofcustomers by
offshore banks andoffshore companies
inLabuan isconfined tonon-resident
customers andininstruments created
andissued abroad.(1) None
(2) None
(3) NoneMALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Trading inshares ofMalaysian
companies byoffshore banks and
offshore companies inLabuan is
confined tonon-resident customers who
arenotoffshore companies registered
orincorporated inLabuan.
Only commercial banks andoffshore
banks arepermitted totrade inforeign
currency.
Trading anddealing insecurities and
financial futures anderivative products
other thanbydesignated financial
institutions require establishment ofa
locally incorporated joint-venture
company andaggregate foreign
shareholding insuchcompany shallnot
exceed 30percent.
(4)Forbanks, unbound except asindicated
inthefinance sector horizontal section.
Fornon-banks, unbound except as
indicated intheall-sector horizontal
section.(4)Forbanks, unbound except as
indicated inthefinance sector
horizontal section.
Fornon-banks, unbound except as
indicated intheall-sector horizontal
section.
GATS/SC/52/Suppl.1
Page27MALAYSIA (continued) GATS/SC/52/Suppl.1
Page28
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Services related tothe
issues ofallkinds of
securities andplacement
asagents (whether
publicly orprivately)
(excluding issuing and
rating houses)(1),(2)Participation inissues andservices
related tosuchissues requires
authorization.
(3)Participation byoffshore banks in
Labuan islimited tonon-resident
customers andforissues ofsecurities
outside Malaysia.
Only merchant banks arepermitted to
make submissions tothesecurities
Commission fornewissues.(1),(2)None
(3)None
Participation bynon-banks requires
establishment ofalocally incorporated
joint-venture company andaggregate
foreign shareholding insuchcompany
shallnotexceed 30percent.
Unbound forappointment asprincipal
dealers.
(4)Forbanks, unbound except asindicated
inthefinance sector horizontal section.
Fornon-banks, unbound except as
indicated intheall-sector horizontal
section.(4)Forbanks, unbound except as
indicated inthefinance sector
horizontal section.
Fornon-banks, unbound except as
indicated intheall-sector horizontal
section.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Underwriting (1)Commercial presence isrequired.
(2)Authorization isrequired.
(3)Fornon-banks, onlylicensed dealers
arepermitted tounderwrite. Entry is
limited toestablishment ofalocally
incorporated joint-venture company and
aggregate foreign shareholding insuch
company shallnotexceed 30percent.(1)Unbound*
(2)None
(3)None
Commercial banks arepermitted to
underwrite private debtsecurities only.
(4)Forcommercial banks andmerchant
banks, unbound except asindicated in
thefinance sector horizontal section.
Fornon-banks, unbound except as
indicated intheall-sector horizontal
section.(4)Forbanks, unbound except as
indicated inthefinance sector
horizontal section.
Fornon-banks, unbound except as
indicated intheall-sector horizontal
section.
GATS/SC/52/Suppl.1
Page29MALAYSIA (continued) GATS/SC/52/Suppl.1
Page30
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Asset management as
follows:
-cashorportfolio
management
-allforms of
collective investment
management
-custodial and
depository services(1)Commercial presence isrequired.
(2)None
(3)Custodial anddepository services are
limited toscrip based securities.
Asset management byoffshore banks
andoffshore companies isconfined to
non-resident customers andforeign
currency assets.(1)None
(2)None
(3)None
Asset management byoffshore banks
andoffshore companies inMalaysian
equities orequity-linked investments
areconfined tonon-resident customers
whoarenotoffshore companies
registered orincorporated inLabuan.
Entry asanon-bank islimited to
establishment ofalocally incorporated
joint-venture company andaggregate
foreign shareholding insuchcompany
shallnotexceed 30percent.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Provision ofassetmanagement services
byacommercial bankrequires
establishment ofaseparate entity and
shareholding byaforeign-controlled
commercial bankshallnotexceed
30percent.
(4)Forcommercial banks andmerchant
banks, unbound except asindicated in
thefinance sector horizontal section.
Fornon-banks, unbound except as
indicated intheall-sector horizontal
section.(4)Forbanks, unbound except as
indicated inthefinance sector
horizontal section.
Fornon-banks, unbound except as
indicated intheall-sector horizontal
section.
Advisory, intermediation
andother auxiliary
financial services,
including credit reference
andanalysis, investment
advice onacquisitions,
corporate restructuring
andstrategy(1)Provision ofinvestment andportfolio
advice requires commercial presence.
Services other thaninvestment and
portfolio advice toresidents must be
undertaken jointly withcommercial
banks ormerchant banks inMalaysia.
(2)Services other thaninvestment and
portfolio advice toresidents must be
undertaken jointly withcommercial
banks ormerchant banks inMalaysia.(1)None
(2)None
GATS/SC/52/Suppl.1
Page31MALAYSIA (continued) GATS/SC/52/Suppl.1
Page32
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3)Entry asanon-bank islimited to:
(a)Establishment ofalocally
incorporated joint-venture
company andaggregate foreign
shareholding insuchcompany
shallnotexceed 30percent; or
(b)Arepresentative office.
Representative offices (including those
ofcommercial banks, merchant banks
andsecurities companies) arepermitted
toundertake research, information and
liaison services only.
Representative offices ofsecurities
companies arenotpermitted topublish
andcirculate research work in
Malaysia.(3)NoneMALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Offshore banks andoffshore companies
inLabuan canonlyprovide services to
non-resident customers.
(4)Forbanks, unbound except asindicated
inthefinance sector horizontal section.
Fornon-banks, unbound except as
indicated intheall-sector horizontal
section.
Forrepresentative offices, twoforeign
nationals subject toonlyoneforeign
national forthetwotopposts. Entry
shallbelimited toamaximum period
offiveyears.(4)Forbanks, unbound except as
indicated inthefinance sector
horizontal section.
Fornon-banks, unbound except as
indicated intheall-sector horizontal
section.
GATS/SC/52/Suppl.1
Page33MALAYSIA (continued) GATS/SC/52/Suppl.1
Page34
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Operational headquarters
(OHQ) forfinancial
sector. Provides services
tocommercial and
investment banking
institutions inactivities
relating towork carried
outinMalaysia forits
offices andrelated
companies outside
Malaysia, pertaining to
general management and
administration, business
planning, technical
support, marketing
control andsales
promotion planning,
training andpersonnel
management, provision of
treasury andfund
management services and
research anddevelopment(1),(2)Unbound*
(3)Only through alocally incorporated
wholly-foreign owned company.
Aforeign-owned company, aregional
office ofaforeign-owned company
which transfers itsOHQ services to
Malaysia, aregional office ofa
foreign-owned company established in
Malaysia andaforeign-owned company
which isalready incorporated in
Malaysia, mayseektoqualify asan
OHQ.
AnOHQ must operate inMalaysia and
fulfil thefollowing criteria:
(i)Carry outatleastthree ofthe
OHQ service activities;
(ii)Have asizeable network of
companies outside Malaysia which
includes theparent company orits
headoffice andrelated companies;(1),(2)Unbound*
(3)NoneMALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(iii)Have awellestablished foreign-
owned company which issizeable
interms ofassets andemployees;
(iv)Have anetwork ofcompanies with
asubstantial number ofqualified
executives, professionals, technical
andother supporting personnel;
(v)Beabletomake decisions
independently without consultation
withitsheadoffice orparent
company located outside Malaysia;
(vi)Beabletocontribute tothe
Malaysian economy by:
(a) Using services suchas
legal, accounting etc.
provided byMalaysians;
(b) Creating jobopportunities
forMalaysians;
(c) Enabling greater inflow
offoreign funds.
(4)Unbound except asindicated inthe
all-sector horizontal section.(4)None
GATS/SC/52/Suppl.1
Page35MALAYSIA (continued) GATS/SC/52/Suppl.1
Page36
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Securities broking
services comprising:
-broking services;
-credit reference and
analysis;
-investment portfolio
management and
advice; and
-market research(1)Trades onMalaysian stock exchange
must betransacted through companies
incorporated inMalaysia which are
member companies oftheexchange.
Promotion inMalaysia ofMalaysian
stocks requires approval.
Provision ofinvestment advisory
services andcredit reference services to
residents requires commercial presence.(1)None
(2)Trades onMalaysian stock exchanges
must betransacted through companies
incorporated inMalaysia which are
member companies oftheexchange.
(3)Entry islimited torecognized foreign
stock broking companies through:
(i)Equity participation inanexisting
stockbroking company; or(2)None
(3)NoneMALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(ii)Establishment ofalocally
incorporated joint-venture
company withaMalaysian
stockbroking company
andaggregate foreign shareholding in
suchcompany shallnotexceed 30per
cent. Theaggregate foreign
shareholding willbepermitted tobe
increased to49percentwitheffect
from 1July2000, subject to
conditions.
Aforeign stockbroking company is
permitted tohaveshareholding inone
stockbroking company only.
Entry byrecognized foreign
stockbroking companies isalso
permitted through arepresentative
office.
GATS/SC/52/Suppl.1
Page37MALAYSIA (continued) GATS/SC/52/Suppl.1
Page38
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Representative offices arepermitted to
undertake research, information and
liaison services only. Representative
offices arenotpermitted topublish and
circulate research work inMalaysia.
Newlicences subject toconditions,
including geographical location,
numerical quota andother conditions to
bedetermined.
(4)Unbound forastockbroking company,
except asindicated intheall-sector
horizontal section.
Forrepresentative offices, twoforeign
nationals subject toonlyoneforeign
national forthetwotopposts. Entry
shallbelimited toamaximum period
offiveyears.(4)Unbound except forthecategories of
natural persons referred tounder
market access.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Commodity futures
broking services(1),(2)Trades onanyMalaysian
commodity futures exchange must be
conducted through companies
incorporated inMalaysia which are
member companies oftheexchange.
(3)Entry islimited to:
(i)Establishment ofalocally
incorporated joint-venture
company andaggregate foreign
shareholding insuchcompany is
limited to30percentorany
higher percentage asdetermined by
therelevant authorities; or
(ii)Arepresentative office(1),(2)None
(3)None
Representative offices arepermitted to
undertake research, information and
liaison services only.
Total membership oftheexchange will
bebased oneconomic needs.
(4)Unbound except oneforeign national
foramanagement postper
establishment, subject tomarket test.(4)Unbound except forthecategories of
natural persons referred tounder
market access.
GATS/SC/52/Suppl.1
Page39MALAYSIA (continued) GATS/SC/52/Suppl.1
Page40
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
3.INSURANCE
SERVICES
Direct insurance
(non-life)(1)Soliciting andadvertising inMalaysia
arenotallowed.
Other thaninsurance associated with
goods ininternational transit, direct
insurance abroad requires approval.
Approval willbegranted if
underwriting capacity andskillarenot
available inMalaysia.
(2)Other thaninsurance associated with
goods ininternational transit, direct
insurance abroad requires approval.
Approval willbegranted if
underwriting capacity andskillarenot
available inMalaysia.(1)None
(2)NoneMALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3)Only permitted through insurance
companies.
Offshore insurance companies in
Labuan arenotpermitted toaccept
direct insurance ofMalaysian risks.(3)Branching ispermitted forinsurance
companies withaggregate foreign
shareholding notexceeding
30percent.
Branching isalsopermitted for:
(i)Branches offoreign insurance
companies which incorporate
locally andshareholding
structure ofsuchlocally
incorporated companies reflects
anaggregate foreign
shareholding ofnotmore than
49percentby30June1998.
GATS/SC/52/Suppl.1
Page41MALAYSIA (continued) GATS/SC/52/Suppl.1
Page42
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(4)Unbound except asindicated inthe
finance sector horizontal section.(ii)Foreign-owned locally
incorporated insurance
companies which restructure to
reflect anaggregate foreign
shareholding ofnotmore than
49percentby30June1998.
Unbound forspecial assistance to
Malaysian-owned insurance
companies topromote their
development.
(4)Unbound except asindicated inthe
finance sector horizontal section.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Direct insurance (life) (1),(2)Unbound
(3)Only permitted through insurance
companies.
Investment-linked insurance business
andnewlifeinsurance products
provided byinsurance companies
require approval, which willbebased
onprudential criteria.
Offshore insurance companies in
Labuan arenotpermitted tounderwrite
lifeinsurance ofMalaysian residents.(1),(2)Unbound
(3)Branching isonlypermitted for
insurance companies withaggregate
foreign shareholding notexceeding
30percent.
Branching isalsopermitted for:
(i)Branches offoreign insurance
companies which incorporate
locally andshareholding
structure ofsuchlocally
incorporated companies reflects
anaggregate foreign
shareholding ofnotmore than
49percentby30June1998.
GATS/SC/52/Suppl.1
Page43MALAYSIA (continued) GATS/SC/52/Suppl.1
Page44
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(4)Unbound except asindicated inthe
finance sector horizontal section.(ii)Foreign-owned locally
incorporated insurance
companies which restructure to
reflect anaggregate foreign
shareholding ofnotmore than
49percentby30June1998.
Unbound forspecial assistance to
Malaysian-owned insurance
companies topromote their
development.
(4)Unbound except asindicated inthe
finance sector horizontal section.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Reinsurance and
retrocession
(lifeandnon-life)(1),(2)Outward reinsurance ispermitted
onlyiflocalcapacity isnot
available.
(3) Unbound fornewlicences forlife
reinsurance.
Seven newlicences fornon-life
reinsurance business willbeissued
within 10years ending
30June2005.
Fortheseven newlicences, entry
isthrough theestablishment of:
(a)branches; or
(b)locally incorporated
joint-venture companies.(1),(2)Voluntary cession upto30per
centifeachclassofnon-life
reinsurance business tothe
Malaysian National Reinsurance
Berhad.
Unbound forfiscal incentives to
promote reinsurance inMalaysia.
(3) Obligation onallinsurers other
thanoffshore insurance and
offshore reinsurance companies
tooptimize national retention
capacity before anyoutward
reinsurance.
Unbound formeasure granting
special position toMalaysian
National Reinsurance Berhad.
GATS/SC/52/Suppl.1
Page45MALAYSIA (continued) GATS/SC/52/Suppl.1
Page46
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Theissue oftheseven new
licences shallbesubject to:
(i)Priority being given toforeign
reinsures/foreign joint-venture
partners from thetop100
world reinsures, andwhich
meetoneofthefollowing
criteria:
(a) Have representative
offices inMalaysia which
areestablished withthe
Central Bank'sapproval;
or
(b) Have longpresence in
Asiaandability to
procure sufficient
business fortheir
branch/joint-venture
company; or
(c) Arefrom countries or
regions having no
representation in
Malaysia, provided they
bring inspecial expertise.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(ii)Priority being given to:
(a)Foreign reinsures
intending tobasetheir
regional headquarters in
Kuala Lumpur.
(b)Joint-venturers having
business plans tooperate
regionally.
(iii)Thelicensed branch/
joint-venture company
undertaking tocomply with
thenational objectives of
achieving optimum retention
oflocalrisks, local
participation inthe
management ofthelicensee
andtransfer oftechnical
expertise tothelocalmarket.
GATS/SC/52/Suppl.1
Page47MALAYSIA (continued) GATS/SC/52/Suppl.1
Page48
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(iv)Aggregate foreign
shareholding inthe
joint-venture company not
exceeding 49percent.
(v)Priority being given to
joint-venture withlocal
partners which:
(a)Arecapitalized with
minimum shareholders '
funds ofatleast
RM3 billion; or
(b)Areleading institutions
withdiversified business
activities within its
group; or
(c)Have good track record
ofmanaging asubstantial
insurance portfolio.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Entry isalsopermitted through
equity participation intheexisting
locally incorporated reinsurance
company andaggregate foreign
shareholding shallnotexceed
30percent.
Entry asanoffshore reinsurance
company isconfined toLabuan.
(4) Unbound except for:
(a)Twosenior managers foreach
institution. Asenior manager
isanindividual possessing
proprietary knowledge and
authority essential tothe
establishment, control and
operation oftheservices of
thefinancial service supplier.(4) Unbound except asindicated in
thefinance sector horizontal
section.
Foroffshore reinsurance
companies, unbound except as
indicated inthefinance sector
horizontal section.
GATS/SC/52/Suppl.1
Page49MALAYSIA (continued) GATS/SC/52/Suppl.1
Page50
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(b)Specialists orexperts are
permitted subject tomarket
testandeligibility criteria.
specialists orexperts are
individuals whopossess
knowledge andexpertise
relating tonewproducts and
services, technique or
management ofthefinancial
service supplier.
(c)Movement ofasenior
manager, specialist orexpert
canbethrough intra-corporate
transfers orotherwise.
(d)Entry shallbelimited toa
maximum period offive
years.
Foroffshore reinsurance
companies, unbound except as
indicated inthefinance sector
horizontal section.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Insurance intermediation
insurance broking
(excluding agency)(1),(2)Direct insurance broking services
canonlybeprovided tooffshore
companies inLabuan.
Reinsurance broking ispermitted.
(3) Only permitted through offshore
insurance brokers
Entry islimited tothe
establishment ofoffshore branches
oroffshore subsidiaries inLabuan.(1),(2)None
(3) None
Only broking ofdirect insurance
products ofoffshore insurance
companies inLabuan ispermitted.
Only broking ofreinsurance of
Malaysian risksispermitted.
(4) Unbound except asindicated inthe
finance sector horizontal section.(4) Unbound except asindicated in
thefinance sector horizontal
section.
GATS/SC/52/Suppl.1
Page51MALAYSIA (continued) GATS/SC/52/Suppl.1
Page52
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Insurance intermediation
insurance underwriting
andinsurance
management(1),(2)Insurance underwriting and
insurance management isnot
allowed.
(3) Insurance underwriting and
insurance management isonly
permitted through offshore
insurance underwriting manager
andoffshore insurance manager
respectively.(1),(2)None
(3) None
Entry islimited tothe
establishment ofoffshore branches
oroffshore subsidiaries inLabuan.
Anoffshore insurance
underwriting manager andan
offshore insurance manager can
onlyprovide services tooffshore
insurance companies inLabuan.
(4) Unbound except asindicated inthe
finance sector horizontal section.(4) Unbound except asindicated in
thefinance sector horizontal
section.MALAYSIA (continued)
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Services auxiliary to
insurance, asfollows:
(a)Consultancy
(excludes insurance
agency services to
insurance industry)
(b)Actuarial risk
assessment
(c)Riskmanagement
(d)Maritime loss
adjusting(1) Actuarial services canonlybe
provided tooffshore insurance
companies andoffshore
reinsurance companies inLabuan.
(2) None
(3) Limited totheestablishment of:
(i)Locally incorporated
companies;
(iii)Branches; or
(iii)Partnerships.(1) None
(2) None
(3) None
Offshore companies arenot
permitted toprovide services to
Malaysian residents.
(4) Unbound except asindicated inthe
finance sector horizontal section.(4) Unbound except asindicated in
thefinance sector horizontal
section.
GATS/SC/52/Suppl.1
Page53