GENERAL AGREEMENT GATS/SC/52
15April 1994
ONTRADE INSERVICES (94-1050)
MALAYSIA
Schedule ofSpecific Commitments
(This isauthentic inEnglish only)
____________________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
I. HORIZONTAL COMMITMENTS
ALL SECTORS
INCLUDED INTHIS
SCHEDULE UNLESS
OTHERWISE
INDICATED
3) Acquisition, Mergers andTake-overs
Theacquisition ofassets orinterests of
Malaysian companies andbusinesses,
mergers ortake-overs requires approval
andapply tothefollowing:
a) theacquisition ofthevoting rights ofa
Malaysian corporation byanysingle
foreign interest orassociated group of
15percentormore, oranaggregate
foreign interest of30percentormore or
exceeding RM5 million invalue;
b) anyproposed acquisition ofanyassets or
interests byanymeans which willresult in
ownership orcontrol passing toforeign
interest; and3) Land, Property andReal Estate
Approval maybedenied iftheacquisition,
disposal ordealing oflandoranyinterest
inland, property andrealestate is
undertaken forspeculative or
non-productive purpose orforpurposes
which mayconflict withtheinterest ofthe
State.
Incentives/Preferences
Incentives arelimited toeligible
Malaysian-owned corporations engaged in
service sectors promoted bythe
Government.
Anymeasure andspecial preference
granted toBumiputera, Bumiputera status
companies, trust companies andinstitutions
setuptomeet theobjectives oftheNew
Economic Policy (NEP) andtheNational
Development Policy (NDP) shall be
unbound.
GATS/SC/52
Page1MALAYSIA (continued)GATS/SC/52
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
c) control ofMalaysian corporations through
anyform ofjoint-venture agreement,
management agreement, technical
assistance agreement orother
arrangements.
Approval isnormally granted. However it
maybedenied incircumstances where the
proposed investment conflicts withthe
interest oftheState.Corporations inwhich theGovernment has
aninterest shall, inacquiring services, give
firstconsideration toservice suppliers in
which theGovernment hasaninterest.
Thisrequirement does notprevent the
acquisition ofservices from other service
suppliers where their services are
competitive interms ofprice, quality and
delivery.
4) Unbound except formeasures affecting the
entry andtemporary stayofnatural persons
defined below:4) Unbound except forthecategories of
natural persons referred tounder market
access
1. Intra-corporate Transferees
a) senior managers being persons within an
organization having proprietary information
oftheorganization andwhoexercise wide
latitude indecision making relating tothe
establishment, control andoperation ofthe
organization being directly responsible to
theCEO andreceive onlygeneral
supervision ordirection from theboard of
directors orpartners oftheorganization;
andMALAYSIA (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
b) twospecialists orexperts perorganization
being persons within theorganization who
possess knowledge atanadvanced level of
continued expertise andwhopossess
proprietary knowledge oftheorganization 's
newservice products andtechnology,
research equipment andtechniques or
management. Additional specialists or
experts maybeallowed subject tomarket
testandthetraining ofMalaysians through
anacceptable training programme inthe
relevant services sector orsubsector:
Provided thatsuch persons areemployees
oftheforeign service supplier andhave
been intheemployment ofthatforeign
service supplier foraperiod ofnotless
thanoneyearimmediately preceding the
dateoftheir application forawork permit
andheistoserve inatleast asimilar
capacity.
2. Others
a) specialists orexperts being persons who
possess knowledge atanadvanced level of
continued expertise andwhopossess
proprietary knowledge ofthe
organizations 'sproducts andservices
subject tomarket testandtheemployment
ofMalaysians ascounterparts and/or
GATS/SC/52
Page3MALAYSIA (continued)GATS/SC/52
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
training ofMalaysians through acceptable
training programmes intherelevant
services sector orsubsector;
b) professionals being persons whopossess
necessary academic credentials,
professional qualifications, experience
and/or expertise which have been duly
recognized bytheprofessional bodies in
Malaysia andregistered withthose
respective professional bodies; and
c) business visitors being persons notbased
within Malaysia, receiving noremuneration
from asource located within Malaysia,
whohave been employed foratleast one
yearbyaforeign service supplier, whose
entry andtemporary stayisforthe
purposes ofnegotiating forthesaleof
services orentering intoagreements tosell
services forthatservice supplier andwho
willnotengage indirect sales tothe
general public.
3) Entry andstayofnatural persons defined
incategories 1a)andb)and2a)andb)
shall notexceed atotal offiveyears. For
category 2c),theperiod ofstayshall not
exceed atotalof90days.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. SECTOR-SPECIFIC COMMITMENTS1
BUSINESS SERVICES
Professional Services
Legal services
covering advisory and
consultancy services
relating onlytohome
country laws,
international lawand
offshore corporation laws
ofMalaysia
(8619)1),2)None
3) Only through acorporation incorporated in
theFederal Territory ofLabuan.
Legal services shall onlybesupplied to
offshore corporations established inthe
Federal Territory ofLabuan.
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
Accounting, auditing and
bookkeeping services
(862)1),2)None
3) Only through alocally registered
partnership withMalaysian accountants or
Malaysian accounting firms andaggregate
foreign interests shall notexceed
30percent1),2)Auditing services must beauthenticated by
alicensed auditor inMalaysia
3) None
1 Anasterisk against aCPC codenumber indicates thatthecorresponding service subsector inthisschedule covers onlyapartorparts oftheservice subsector classified
under theCPC concordance.
GATS/SC/52
Page5MALAYSIA (continued)GATS/SC/52
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 asindicated inthe
horizontal section
Inrespect of2b),residency isrequired for
registration4) Unbound except forthecategories of
natural persons referred tounder market
access4) Thequalifying
examination to
determine the
competence and
ability tosupply the
service forthe
purposes of
registration withthe
professional bodies
willbeconducted in
theEnglish
language
Taxation services
(863)1),2)None 1),2)Taxation services must beauthenticated by
alicensed auditor inMalaysia
3) Only through alocally registered
partnership withMalaysian accountants or
Malaysian accounting firms andaggregate
foreign interests inthepartnership shall not
exceed 30percent3) 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
4) Unbound except asindicated inthe
horizontal section
Inrespect of2b),residency isrequired for
registration4) Unbound except forthecategories of
natural persons referred tounder market
access4) Thequalifying
examination to
determine the
competence and
ability tosupply the
service forthe
purposes of
registration withthe
professional bodies
willbeconducted in
theEnglish
language
Architectural services
(8671)1),2)None 1),2)Architectural services must be
authenticated byaregistered architect in
Malaysia
3) Architectural services maybesupplied only
byanatural person3) None
4) Unbound except asindicated inthe
horizontal section and,inrespect of2b),
onlyanarchitect whoisaconsultant toa
project wholly financed byaforeign
government orimplemented under a
bilateral arrangement between governments
subject totemporary registration fora
period ofoneyearpertemporary
registration4) Unbound except forthecategories of
natural persons referred tounder market
access4) Thequalifying
examination to
determine the
competence and
ability tosupply the
service forthe
purposes of
registration withthe
professional bodies
willbeconducted in
theEnglish
language
GATS/SC/52
Page7MALAYSIA (continued)GATS/SC/52
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
Engineering services
(8672)1),2)None 1),2)Engineering services must beauthenticated
byaregistered professional engineer in
Malaysia
3) Engineering services maybesupplied only
byanatural person3) None
4) Unbound except asindicated inthe
horizontal section andinrespect of
2b),subject totemporary registration fora
period ofoneyearpertemporary
registration4) Unbound except forthecategories of
natural persons referred tounder market
access4) Thequalifying
examination to
determine the
competence and
ability tosupply the
service forthe
purposes of
registration withthe
professional bodies
willbeconducted in
theEnglish
language
Integrated engineering
services
(8673)1),2)None 1),2)Integrated engineering services must be
authenticated bytherelevant registered
professionals inMalaysia
3) Only through arepresentative office,
regional office orlocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothforthepurpose of
services contract awarded inMalaysia.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
Theaggregate foreign shareholding inthe
joint-venture corporation shall notexceed
30percent
Establishment ofsuch joint-venture
corporation isonlyforaduration necessary
tocomplete theservices contract
4) Unbound except asindicated inthe
horizontal section andinrespect of2b),
foraperiod ofuptooneyearorthe
duration necessary tocomplete theservices
contract4) Unbound except forthecategories of
natural persons referred tounder market
access4) Thequalifying
examination to
determine the
competence and
ability tosupply the
service forthe
purposes of
registration withthe
professional bodies
willbeconducted in
theEnglish
language
GATS/SC/52
Page9MALAYSIA (continued)GATS/SC/52
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
Medical speciality
services
covering forensic
medicine, nuclear
medicine, geriatrics,
microvascular surgery,
neurosurgery,
cardiothorasic surgery,
plastic surgery, clinical
immunology and
oncology, traumatology,
anaesthesiology,
intensive carespecialist,
child psychiatry and
physical medicine
(93122)1),2)None
3) Medical speciality services maybesupplied
onlybyanatural person
4) Unbound except asindicated in2a)inthe
horizontal section1),2)None
3) None
4) None other than:
practice onlyinprivate hospitals ofatleast
100beds;
practice tobeonlyataspecified location
andachange oflocation requires approval;
and
thesetting upofindividual orjoint group
practices isnotpermitted.4) Thequalifying
examination to
determine the
competence and
ability tosupply the
service willbe
conducted inthe
English language
Computer andRelated
Services
Consultancy services
related totheinstallation
ofcomputer hardware
(841)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandtheaggregate
foreign shareholding inthejoint-venture
corporation shall notexceed 30percent1),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
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
Consultancy services
related tosoftware
implementation
covering advisory and
implementation services
forcustomised software
(842)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandtheaggregate
foreign shareholding inthejoint-venture
corporation shall notexceed 30percent1),2)None
3) None
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
Database services
(8440)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandtheaggregate
foreign shareholding inthejoint-venture
corporation shall notexceed 30percent1),2)None
3) None
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
GATS/SC/52
Page11MALAYSIA (continued)GATS/SC/52
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
Computer software
development services
covering development of
newsoftware forgeneral
application, including,
ready-made software
packaged forgeneral
application
(842*)1),2),3)None
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2),3)None
4) Unbound except forthecategories of
natural persons referred tounder market
access
Research and
Development Services
Research and
experimental
development services on
social sciences and
humanities
(8520 except 85203 and
85204)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandtheaggregate
foreign shareholding inthejoint-venture
corporation shall notexceed 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
accessMALAYSIA (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
Rental/Leasing Services
without Operators
Relating toships
exclude cabotage and
offshore trades
(83103)1),2)None
3) Only through arepresentative office,
regional office orMalaysian-controlled
corporation acting asanagent
4) Unbound except asindicated inthe
horizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
Relating toaircraft
(83104)1),2)None
3) Only through arepresentative office,
regional office orMalaysian-controlled
corporation acting asanagent1),2)None
3) None
4) Unbound except asindicated inthe
horizontal section4) Unbound except asindicated inthe
horizontal section
Relating toconstruction
andmining equipment
andindustrial plant and
equipment
(83107*)1),2)None
3) Only through arepresentative office,
regional office orMalaysian-controlled
corporation acting asanagent1),2)None
3) None
4) Unbound except asindicated inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
GATS/SC/52
Page13MALAYSIA (continued)GATS/SC/52
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
Other Business Services
Advertising services
(8711, 8712, 8719)1) Commercial presence isrequired
2) None1) Unbound
2) None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandtheaggregate
foreign shareholding inthejoint-venture
corporation shall notexceed 30percent3) None
Advertisement through electronic media
Advertisement must have atleast
80percentlocal content andbemade in
Malaysia
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section4) Unbound except forthecategories of
natural persons referred tounder market
accessMALAYSIA (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
Management consulting
services
covering advisory,
guidance andoperational
assistance services
concerning management
ofthetransmission of
non-conventional energy
(8650*)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandBumiputera
shareholding inthejoint-venture
corporation isatleast 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
Management consulting
services
covering advisory,
guidance andoperational
assistance on
environmental
management services
including riskassessment
services
(8650*)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandBumiputera
shareholding inthejoint-venture
corporation isatleast 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
GATS/SC/52
Page15MALAYSIA (continued)GATS/SC/52
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
Management consulting
services
covering advisory and
guidance inthefield of
pharmacy asfollows:
- Basic material
manufacturing
consultancy inthe
manufacture ofdrugs in
rawmaterial form;1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandBumiputera
shareholding inthejoint-venture
corporation isatleast 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
- New systems ofdrug
delivery;
- Biotechnology-new
techniques for
influencing theprocess
andproducts ofliving
cells;
- New techniques indrug
development and
methods ofproducing
drugs andvaccine; and
- Vaccine production.
(8650*)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
Management consulting
services
covering advisory and
guidance onInternational
Value-Added Network
Services, rural telecom
development andhuman
resource development in
telecommunications
(8650*)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandBumiputera
shareholding inthejoint-venture
corporation isatleast 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
Services incidental to
agriculture andfishing
covering onlyspecialised
consultancy, advisory
andoperational
assistance oncropand
fisheries management,
including, value-added
services such as
preservation techniques,
etc.
(881*, 882*)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandBumiputera
shareholding inthejoint-venture
corporation isatleast 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
GATS/SC/52
Page17MALAYSIA (continued)GATS/SC/52
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
Services incidental to
manufacturing
(884, 885except 88442)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandBumiputera
shareholding inthejoint-venture
corporation isatleast 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
Technical testing and
analysis services
(8676 except 86764)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandBumiputera
shareholding inthejoint-venture
corporation isatleast 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
accessMALAYSIA (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
Student placement
services
covering promoting,
recruiting andfacilitating
students forstudies
outside Malaysia
(87909)1),2),3)None
4) Unbound except asindicated inthe
horizontal section1),2),3)None
4) Unbound except forthecategories of
natural persons referred tounder market
access
Market research and
public opinion polling
services
(864)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandBumiputera
shareholding inthejoint-venture corporals
atleast exceed 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
Translation and
interpretation services
(87905)1),2)None
3) Translation andinterpretation services may
besupplied onlybyanatural person1),2)None
3) None
4) Unbound except asindicated in2a)inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access.
GATS/SC/52
Page19MALAYSIA (continued)GATS/SC/52
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
Translation and/or interpretation from the
English language totheMalay language or
vice-versa isnotpermitted
Convention and
exhibition management
services
covering theprovision of
planning, organizational,
management and
marketing services for
conventions andother
similar events
(87909)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandaggregate foreign
shareholding inthejoint-venture
corporation shall notexceed 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
Landscaping services
covering theprovision of
advisory, planning and
designing services forthe
aesthetic landscaping of
golfcourses andtheme
parks
(86742*)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandtheaggregate
foreign shareholding inthejoint-venture
corporation shall notexceed 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
accessMALAYSIA (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
Operational Headquarters
(OHQ) Services
covering general
management and
administration, business
planning, procurement of
rawmaterials, technical
support, marketing
control andsales
promotion planning,
training andpersonnel
management, provision
oftreasury andfund
management services and
research and
development carried out
byacompany in
Malaysia foritsoffices
andrelated companies
outside Malaysia.
Services rendered by
OHQ companies are
limited toestablishments
engaged inbusiness
related tothefollowing
sectors orsubsectors:1),2)Unbound duetolackoftechnical
feasibility
3) Only through alocally incorporated wholly
foreign-owned company.
Aforeign-owned company, aregional
office ofaforeign-owned company which
transfers itsOHQ services toMalaysia, a
regional office ofaforeign-owned
company established inMalaysia anda
foreign-owned company which isalready
incorporated inMalaysia mayseekto
qualify asanOHQ.
OHQ must operate inMalaysia andfulfil
thefollowing criteria:
a) carry outatleast 3oftheOHQ service
activities;
b) have asizeable network ofcompanies
outside Malaysia which includes theparent
company oritshead office andrelated
companies;
c) have awellestablished foreign-owned
company which issizeable interms of
assets andemployees;1),2)Unbound duetolackoftechnical
feasibility
3) None
GATS/SC/52
Page21MALAYSIA (continued)GATS/SC/52
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
Seaandairservices,
Communication services,
Tourism services,
Professional and
Consulting services
(87909)d) have anetwork ofcompanies with
substantial number ofqualified executives,
professionals, technical andother
supporting personnel;
e) beabletomake decisions independently
without consultations withitshead office or
parent company located outside Malaysia;
f) beabletocontribute totheMalaysian
economy by:
i)using services such aslegal,
accounting etc.provided by
Malaysians;
ii)creating jobopportunities for
Malaysians;
iii)enabling greater inflow offoreign
funds.
4) Unbound except asindicated inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
accessMALAYSIA (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
COMMUNICATION
SERVICES
Telecommunication
Services
ofwhich enhanced
value-added services
must beprovided from
channels orlines
obtained onlyfrom
licensed network
operators
Data andtransmission
services
covering electronic mail,
voice mail, on-line
information anddatabase
retrieval, enhanced
facsimile, code and
protocol conversion
(7523)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations; or
Only through acquisition ofshares ofan
existing licensed VAS operator/
corporation;1),2)None
3) None
Aggregate foreign shareholding shall not
exceed 30percent;
Thelicence shall specify thetypeof
services tobeprovided; and
Simple resale isnotpermitted.
GATS/SC/52
Page23MALAYSIA (continued)GATS/SC/52
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
4) Unbound except asindicated inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
Mobile dataservices
(7523*)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations; or1),2)None
3) None
Only through acquisition ofshares ofan
existing licensed VAS operator/
corporation; and
Aggregate foreign shareholding shall not
exceed 30percent
4) Unbound except asindicated inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
Telex andtelegraph
services
(7523*)1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations; or1),2)None
3) None
Only through acquisition ofshares ofan
existing licensed telex andtelegraph
operator/corporation; andMALAYSIA (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 shall not
exceed 30percent
4) Unbound except asindicated inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
Audiovisual Services
Motion picture, video
tapeandaudio recording
distribution services
(96113)1) Commercial presence isrequired
2) None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandtheaggregate
foreign shareholding shall notexceed
30percent1) Unbound
2) None
3) None
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
GATS/SC/52
Page25MALAYSIA (continued)GATS/SC/52
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
Broadcasting services
covering transmission
from foreign broadcast
station offoreign
broadcast matter from
foreign territory through
television orradio
(7524*)1) 20percentoftotalscreening time; and
Dubbing intothenational language maybe
required
2) None
3) Unbound duetolackoftechnical feasibility
4) Unbound duetolackoftechnical feasibility1) Unbound forgovernment channel
2) None
3) Unbound duetolackoftechnical feasibility
4) Unbound duetolackoftechnical feasibilityMALAYSIA (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
CONSTRUCTION AND
RELATED
ENGINEERING
SERVICES
Construction work
(511, 512, 513, 514,
515, 516, 517)1) Unbound duetolackoftechnical feasibility
2) None1) Unbound duetolackoftechnical feasibility
2) None
3) Only through arepresentative office,
regional office, orlocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandaggregate foreign
shareholding inthejoint-venture
corporation shall notexceed 30percent3) None
4) Unbound except asindicated inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
GATS/SC/52
Page27MALAYSIA (continued)GATS/SC/52
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
FINANCIAL SERVICES, INCLUDING INSURANCE
Horizontal Commitments Applicable totheFinancial Services Sector
1) Theoffers inthefinancial services sector areinaccordance withtheFramework Agreement onServices andtheAnnex onFinancial Services.
2) Thelimitations listed under theall-sector horizontal section shall notapply tofinancial services, unless otherwise indicated.
3) Inrespect ofoffshore banks, commercial banks, merchant banks, offshore insurance andoffshore reinsurance companies, insurance companies and
representative offices ofcommercial banks andmerchant banks, thefollowing conditions andlimitations onmarket access andmovement ofnatural persons
shall apply inaddition tospecific limitations totheactivity ofeach financial service asspecified ineach offer.
ALL FINANCIAL
SERVICES
1),2)Asindicated under each subsector 1),2)Asindicated ineach subsector
3) Limitations oninvestments ascontained in
theall-sector horizontal section3) Limitations onlandandother immovable
property ascontained intheall-sector
horizontal section
Unbound forcurrent andfuture measures
affecting financial services accorded, to
anyBumiputera ortoassist development of
anyBumiputera financial institution to
achieve objectives oftheNational
Development Policy (NDP)
4) Limitations intheall-sector horizontal
section willapply when indicated ineach
activity4) Limitations intheall-sector horizontal
section willapply when indicated ineach
activityMALAYSIA (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
(AllFinancial Services
cont'd)
1) Offshore banks, offshore
insurance andoffshore
reinsurance companies1),2)Unbound duetolackoftechnical
feasibility
3) Entry isconfined totheFederal Territory
ofLabuan
Entry islimited toestablishment ofa
branch orasubsidiary incorporated in
Malaysia
4) None1),2)Unbound duetolackoftechnical
feasibility
3) None
4) None
2) Commercial banks and
Merchant banks1),2)Unbound duetolackoftechnical
feasibility
3) Existing foreign bank branches of
commercial banks, after local
incorporation, arepermitted tobe
wholly-owned bytheexisting banks1),2)Unbound duetolackoftechnical
feasibility
3) None except asindicated intheallfinancial
services offer andintherespective activity
listed below
Unbound fornewlicences
New entry islimited toequity participation
inexisting locally incorporated institutions
andthesetting upofrepresentative offices.
Aggregate foreign shareholding ina
commercial bank oramerchant bank shall
notexceed 30percent.
GATS/SC/52
Page29MALAYSIA (continued)GATS/SC/52
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
(AllFinancial Services,
Commercial and
Merchant banks cont'd)Acquisition ofanaggregate of5percent
ormore ofshareholding inalocally
incorporated commercial bank ormerchant
bank requires approval. Acquisition ofsuch
shares islimited toforeign banks and
subject toeconomic needs test,including
ability tofacilitate trade andcontribute to
financial andeconomic development in
Malaysia, thecountry oftheforeign bank
hassignificant trade andinvestment
interests inMalaysia anddoes notalready
have asignificant representation inthe
Malaysian banking industry.
Aninstitution owned orcontrolled bya
foreign Government oranagency ofsuch a
Government isnotallowed tocontrol a
commercial bank oramerchant bank in
Malaysia
Alicensed financial institution inMalaysia
isnotallowed toacquire acommercial
bank oramerchant bank, butacommercial
bank mayacquire amerchant bank. A
person holding 5percentofmore ofthe
shares ofalicensed financial institution in
Malaysia isnotallowed toacquire 5per
centormore oftheshares ofanother
commercial bank andmerchant 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
(AllFinancial Services,
Commercial and
Merchant banks cont'd)Representative offices canonlyundertake
research, exchange ofinformation and
liaison services. They arenotpermitted to
carry oncommercial banking ormerchant
banking business.
Unbound fornewservice products of
commercial andmerchant banks
4) Unbound except thefollowing:
a) Unless otherwise specified, temporary
presence ofnatural persons isoffered only
inrespect ofsupply through themode of
commercial presence4) Unbound except forthecategories of
natural persons referred tounder market
access
b) Forbanks, onesenior manager foreach
institution. Specialists orexperts are
subject toanacceptable training
programme forMalaysians tobeconducted
bythese persons, market testandeligibility
criteria. Asenior manager isanindividual
possessing proprietary knowledge and
authority essential totheestablishment,
control andoperation oftheservices ofthe
financial services supplier. Specialists are
individuals whopossess knowledge and
expertise relating tonewproducts and
services, technique ormanagement ofthe
financial service suppliers.
GATS/SC/52
Page31MALAYSIA (continued)GATS/SC/52
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
(AllFinancial Services,
Commercial and
Merchant banks cont'd)c) Forarepresentative office, oneforeign
national foramanagement post
d) Movement ofamanager orspecialist can
bethrough intra-corporate transfers or
otherwise
e) Entry shall belimited toamaximum period
offiveyears
3) Insurance companies 3) Local incorporation ofexisting foreign
branches isrequired. Aggregate foreign
shareholding oftheparent company shall
notexceed 30percent.3) None, except asindicated intheall
financial services offer andtherespective
activity below
Unbound fornewlicences
New entry islimited toequity participation
inexisting locally incorporated insurance
companies. Aggregate foreign shareholding
inanexisting locally incorporated
insurance company shall notexceed 30per
cent.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
(AllFinancial Services,
insurance companies
cont'd)Acquisition of5percentormore of
shareholding inalocally incorporated
company requires approval. Acquisition of
such shares islimited toforeign insurance
companies subject toeconomic needs test,
including ability tocontribute tofinancial
andeconomic development inMalaysia,
thecountry oftheinsurance company has
significant trade andinvestment interests in
Malaysia anddoes notalready have a
significant presence intheMalaysian
insurance industry.
Aninsurance company isnotallowed to
acquire alicensed insurance broking
company oranother insurance company
thatcarries onthesame class ofinsurance
business asthatcarried onbyit.Aperson
holding 5percentormore oftheshares of
aninsurance company isnotallowed to
acquire 5percentormore oftheshares of
another insurance company carrying onthe
same class ofinsurance business asthat
carried onbytheinsurance company ora
licensed insurance broking company of
which heisashareholder.
GATS/SC/52
Page33MALAYSIA (continued)GATS/SC/52
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
(AllFinancial Services,
insurance companies
cont'd)4) Unbound except thefollowing:
a) Unless otherwise specified, temporary
presence ofnatural persons isoffered only
inrespect ofsupply through themode of
commercial presence4) Unbound except forthecategories of
natural persons referred tounder market
access
b) Forinsurance companies, onesenior
manager foreach institution. Specialists or
experts aresubject toanacceptable training
programme forMalaysians tobeconducted
bythese persons, market testandeligibility
criteria. Asenior manager isanindividual
possessing proprietary knowledge and
authority essential totheestablishment,
control andoperation oftheservices ofthe
financial services supplier. Specialists are
individuals whopossess knowledge and
expertise relating tonewproducts and
services, technique ormanagement ofthe
financial service providers.
c) Movement ofamanager orspecialists can
bethrough intra-corporate transfers or
otherwise
d) Entry shall belimited toamaximum period
offiveyearsMALAYSIA (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
BANKING AND
OTHER FINANCIAL
SERVICES,
EXCLUDING
INSURANCE
Acceptance ofdeposits,
andother repayable
funds from thepublic,
wholesale andretail1) Soliciting, advertising andacceptance of
deposits inMalaysia arenotallowed
2) Soliciting andadverting inMalaysia for
acceptance ofdeposits arenotallowed1) None
3) Only permitted through existing institutions
licensed asacommercial bank, amerchant
bank oranoffshore bank.
Offshore banks inLabuan arepermitted to
accept foreign currency deposits only3) Forcommercial banks, unbound for
branching (including off-premises ATMs)
andnetworking withATMs inMalaysia.
Formerchant banks, branching ispermitted
when foreign equity does notexceed 30per
cent.
Merchant banks areonlypermitted to
accept term deposits from non-individuals.
Theminimum amount ofeach term deposit
shall bespecified bytheCentral Bank from
time totime.
4) Unbound except asindicated inthefinance
sector horizontal section4) Unbound except asindicated inthefinance
sector horizontal section
GATS/SC/52
Page 35MALAYSIA (continued)GATS/SC/52
Page 36
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
ofcommercial
transactions1),2)Financial services associated withlending
toresidents inanycurrency must be
undertaken jointly withbanks incorporated
inMalaysia
3) Entry asanon-bank forscheduled
businesses islimited toestablishment ofa
locally incorporated joint-venture company
orarepresentative office. Aggregate
foreign shareholding insuch acompany
shall notexceed 30percentandshall be
confined toforeign financial institutions.1),2)None
3) Non-resident controlled companies are
permitted toobtain uptoamaximum of
40percentoftheir totalcredit facilities
(including factoring andleasing) from
foreign-controlled banks inMalaysia.
(60percentmust besourced from
Malaysian controlled institutions).
Representative offices canonlyundertake
research andliaison services andcannot
carry onanyscheduled business
Provision offactoring services bya
commercial bank requires thesetting upof
aseparate entity. Shareholding bya
foreign-controlled commercial bank shall
notexceed 30percent.Forcommercial banks, unbound for
branching (including off-premises ATMs)
andnetworking withATMs inMalaysia.
Formerchant banks, branching ispermitted
when foreign equity does notexceed
30percent.
Formerchant banks, consumer credit and
home mortgages arenotpermitted
Overdraft facilities arenotpermitted,
except when supplied byacommercial
bank
Offshore banks arepermitted tolendin
foreign currencies onlyMALAYSIA (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
4) Forbanks, unbound except asindicated in
thefinance sector horizontal section4) Forbanks, unbound except asindicated in
thefinance sector horizontal section
Fornon-banks, unbound except oneforeign
national foramanagement postother than
theCEO, foreach establishment. For
representative offices ofscheduled
businesses, oneforeign national fora
management post.Fornon-banks, unbound except forthe
categories ofnatural persons referred to
under market access
Residency requirements arerequired for
lending ofmoney
Financial leasing 1),2)Leasing services toresidents inany
currency must beundertaken jointly with
banks incorporated inMalaysia1),2)None
3) Entry asanon-bank islimited to
establishment ofalocally incorporated
joint-venture company orarepresentative
office. Aggregate foreign shareholding in
such acompany shall notexceed
30percentandshall beconfined toforeign
financial institutions.3) None
Leasing operations byacommercial bank
require setting upaseparate entity.
Shareholding byaforeign-controlled bank
shall notexceed 30percent.
Representative offices canonlyundertake
research andliaison services andcannot
carry onanyform ofleasing business
GATS/SC/52
Page 37MALAYSIA (continued)GATS/SC/52
Page 38
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 oneforeign national fora
management postother thantheCEO, for
each establishment. Forrepresentative
offices, oneforeign national fora
management post.4) Unbound except forthecategories of
natural persons referred tounder market
access
Allpayment andmoney
transmission services,
namely credit anddebit
cards, travellers cheques
andbankers drafts1),2)Electronic fund transfer system requires
approval
3) Offshore banks arepermitted toextend
payment andmoney transmission services
tonon-residents only
Issue ofcredit cards anddebit cards arenot
allowed, other thanbycommercial banks1),2)None
3) Forcommercial banks, unbound for
branches (including off-premises ATMs)
andnetworking withATMs inMalaysia.
Formerchant banks, branching ispermitted
when foreign equity does notexceed 30per
cent.
Issue, saleandpurchase ofringgit
travellers cheques isconfined toMalaysian
controlled banksSaleandpurchase oftravellers cheques by
individuals require citizenship status
Saleandpurchase offoreign currency
travellers cheques other thanby
commercial banks require amoney
changer 'slicence. Entry islimited to
establishment ofalocally incorporated
joint-venture company. Aggregate foreign
shareholding insuch acompany shall not
exceed 30percent.Branches (including dispensers) of
travellers cheques companies arepermitted
when foreign equity does notexceed 30per
cent
Checking account services arenot
permitted, except when provided bya
commercial bank inMalaysiaMALAYSIA (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
4) Forbanks, unbound except asindicated in
thefinance sector horizontal section4) Forbanks, unbound except asindicated in
thefinance sector horizontal section
Fornon-banks, oneforeign national fora
management postother thantheCEO post,
foreach establishmentFornon-banks, unbound except forthe
categories ofnatural persons referred under
market access
Charge cards 1),2)None 1),2)None
3) Entry islimited toestablishment ofa
company incorporated inMalaysia. (There
isnolimit onforeign equity).3) None
4) Unbound except onemanager foreach
establishment4) Unbound except forthecategories of
natural persons referred tounder market
access
Guarantees and
commitments1),2)None except banks established inMalaysia
maybegiven theright offirstrefusal1),2)None
(Guarantees and
commitments undertaken
bynon-residents are
governed byrules
relating toforeign
exchange)3) None
4) Unbound except asindicated inthefinance
sector andall-sector horizontal section3) None
4) Unbound except asindicated inthefinance
sector andall-sector horizontal section
Money andforeign
exchange broking
services1),2)Broking services, involving Ringgit
Malaysia andfinancial instruments issued
inMalaysia must beeffected through
authorized dealers andmoney andforeign
exchange brokers incorporated inMalaysia1),2)None
GATS/SC/52
Page 39MALAYSIA (continued)GATS/SC/52
Page 40
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 other thanthrough equity
participation inexisting institutions isnot
permitted. Aggregate foreign shareholding
ineach company shall notexceed
30percent.3) None
4) Unbound 4) Unbound
Trading forownaccount
oraccount ofcustomers
inthefollowing:
-money market
instruments
-foreign exchange
-transferable
securities
-exchange rateand
interest rate
instruments1) Dealing islimited tocontracts traded on
specified exchanges abroad
2) None
3) Transactions byoffshore banks inLabuan
must beconducted inforeign currencies,
except forthesaleandpurchase of
currencies withauthorized banks in
Malaysia. Transactions forownaccount are
limited toinstruments created andissued
abroad.1) None
2) None
3) None
-derivative products,
including future and
options
-other negotiable
instruments,
including bullionTrading foraccounts ofcustomers by
offshore banks andoffshore companies in
Labuan isconfined tonon-resident
customers andininstruments created and
issued abroad. Trading inshares of
Malaysian companies isconfined to
non-resident customers whoarenot
offshore companies registered or
incorporated inLabuan.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
Trading inforeign currency isnot
permitted, except bycommercial banks and
offshore banks
Trading anddealing insecurities and
financial futures andderivative products
other thanbydesignated financial
institutions requires establishment ofa
locally incorporated joint-venture company.
Aggregate foreign shareholding insuch
company shall notexceed 30percent.
4) Forbanks, unbound except asindicated in
thefinance sector horizontal section4) Forbanks, unbound except asindicated in
thefinance sector horizontal section
Fornon-banks, unbound except as
indicated intheall-sector horizontal sectionFornon-banks, unbound except as
indicated intheall-sector horizontal section
Services related tothe
issues ofallkinds of
securities andplacement
asagents (whether
publicly orprivately)
(excluding issuing and
rating houses)1),2)Participation inissues andservices related
tosuch issues requires authorization
3) Participation byoffshore banks inLabuan
islimited tonon-resident customers andfor
issues ofsecurities outside Malaysia1),2)None
3) None
Submissions fornewissues requiring
approval oftheSecurities Commission
must bemade through licensed merchant
banks
GATS/SC/52
Page 41MALAYSIA (continued)GATS/SC/52
Page 42
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
Participation bynon-banks requires
establishment ofalocally incorporated
joint-venture company. Aggregate foreign
shareholding insuch company shall not
exceed 30percent.
Unbound forappointment asprincipal
dealers
4) Forbanks, unbound except asindicated in
thefinance sector horizontal section4) Forbanks, unbound except asindicated in
thefinance sector horizontal section
Fornon-banks, unbound except as
indicated intheall-sector horizontal sectionFornon-banks, unbound except as
indicated intheall-sector horizontal section
Underwriting 1),2)Commercial presence isrequired 1),2)Unbound duetolackoftechnical
feasibility
3) Underwriting other thanbyabank,
requires adealer 'slicence. Entry islimited
toestablishment ofalocally incorporated
joint-venture company. Aggregate foreign
shareholding shall notexceed 30percent.3) None
4) Forbanks, unbound except asindicated in
thefinance sector horizontal section4) Forbanks, unbound except asindicated in
thefinance sector horizontal section
Fornon-banks, unbound except as
indicated intheall-sector horizontal sectionFornon-banks, unbound except as
indicated intheall-sector horizontal section
Asset management as
follows:1) Commercial presence isrequired
2) None1) 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
-cashorportfolio
management
-allforms of
collective investment
management
-custodial and
depository services3) Asset management byoffshore banks and
offshore companies isconfined to
non-resident customers andforeign
currency assets. Asset management by
offshore banks andoffshore companies in
Malaysian equities orequity linked
investments areconfined tonon-residents
which arenotoffshore companies
registered inLabuan.3) None
Entry asanon-bank islimited to
establishment ofalocally incorporated
joint-venture company. Aggregate foreign
shareholding insuch acompany shall not
exceed 30percent.
Asset management byacommercial bank
requires establishment asaseparate entity.
Shareholding byaforeign-controlled
commercial bank shall notexceed
30percent.
4) Forbanks, unbound except asindicated in
thefinance sector horizontal section4) Forbanks, unbound except asindicated in
thefinance sector horizontal section
Fornon-banks, unbound except as
indicated intheall-sector horizontal sectionFornon-banks, unbound except as
indicated intheall-sector horizontal section
GATS/SC/52
Page 43MALAYSIA (continued)GATS/SC/52
Page 44
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
Advisory, intermediation
andother auxiliary
financial services
including credit reference
andanalysis, investment
advice onacquisitions,
corporate restructuring
andstrategy1),2)Services toresidents must beundertaken
jointly withbanks incorporated inMalaysia
3) Entry asanon-bank islimited to
establishment ofalocally incorporated
joint-venture company orarepresentative
office. Aggregate foreign shareholding in
each company shall notexceed 30percent1),2)None
3) None
Representative offices (including those of
commercial banks, merchant banks and
securities companies) arepermitted to
undertake research, information andliaison
services only. Representative offices of
securities companies arepermitted to
publish andcirculate research work outside
Malaysia only.
Services byoffshore banks andoffshore
companies inLabuan, arelimited to
non-resident customers
4) Forbanks, unbound except asindicated in
thefinance sector horizontal section
Fornon-banks, unbound except as
indicated intheall-sector horizontal section4) Forbanks, unbound except asindicated in
thefinance sector horizontal section
Fornon-banks, unbound except as
indicated intheall-sector horizontal sectionMALAYSIA (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
Operational Headquarters
(OHQ) forfinancial
sector
(provides services to
commercial and
investment banking
institutions inactivities
relating towork carried
outinMalaysia forits
offices andrelated
companies outside
Malaysia, covering
general management and
administration, business
planning, procurement of
rawmaterials, technical
support, marketing
control andsales
promotion planning,
training andpersonnel
management, provision
oftreasury andfund
management services and
research and
development)1),2)Unbound duetolackoftechnical
feasibility
3) Only through alocally incorporated wholly
foreign-owned company
Aforeign-owned company, aregional
office ofaforeign-owned company which
transfers itsOHQ services toMalaysia, a
regional office ofaforeign-owned
company established inMalaysia, anda
foreign-owned company which isalready
incorporated inMalaysia mayseekto
qualify asaOHQ
OHQ must operate inMalaysia andfulfil
thefollowing criteria:
a)carry outatleast 3oftheOHQ
service activities;
b)have asizeable network ofcompanies
outside Malaysia which includes the
parent company oritshead office and
related companies;1),2)Unbound duetolackoftechnical
feasibility
3) None
GATS/SC/52
Page 45MALAYSIA (continued)GATS/SC/52
Page 46
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)have awellestablished foreign-owned
company which issizeable interms of
assets andemployees:
d)have anetwork ofcompanies with
substantial number ofqualified
executives, professionals, technical
andother supporting personnel;
e)beabletomake decisions
independently without consultations
withitshead office orparent company
located outside Malaysia;
f)tobeabletocontribute tothe
Malaysian economy by:
i)using services such aslegal,
accounting etc.provided by
Malaysians;
ii)creating jobopportunities for
Malaysians;
iii)enabling greater inflow offoreign
funds
4) Unbound except asindicated inthe
all-sector horizontal section4) Unbound except asindicated inthe
all-sector horizontal sectionMALAYSIA (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
Securities broking
services comprising:
a)broking services;1) Trades onMalaysian stock exchanges must
betransacted through companies
incorporated inMalaysia which are
members oftheexchange1) None
b)credit reference and
analysis;Promotion inMalaysia ofMalaysian stocks
requires approval
c)investment portfolio
management and
advice; andProvision ofinvestment advisory services
andcredit reference services toresidents
requires commercial presence
d)market research 2) Trades onMalaysian stock exchanges must
betransacted through companies
incorporated inMalaysia which are
members oftheexchange2) None
3) Entry islimited toequity participation in
existing stockbroking companies or
establishment ofjoint-venture companies
withMalaysian stockbroking companies
andincorporated inMalaysia orsetting up
ofrepresentative offices. Aggregate foreign
shareholding ineach company shall not
exceed 30percent. Foreign entry is
limited torecognized foreign stockbroking
companies. Aforeign stockbroking
company ispermitted toholdshares inone
stockbroking company.3) None
New licences subject toeconomic needs
testand/or geographical location
GATS/SC/52
Page 47MALAYSIA (continued)GATS/SC/52
Page 48
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 andliaison
services only. They arepermitted to
publish andcirculate research work outside
Malaysia only.
4) Unbound forastockbroking company,
except asindicated intheall-sector
horizontal section
Oneforeign national forasenior
management postperrepresentative office4) Unbound except forthecategories of
natural persons referred tounder market
access
Commodity futures
broking services1),2)Trades onanyMalaysian commodity
futures exchange must beconducted
through companies incorporated in
Malaysia which aremembers ofthe
exchange1),2)None
3) Entry islimited toestablishment ofa
representative office oralocally
incorporated joint-venture company.
Aggregate foreign shareholding insuch a
company islimited to30percentorany
higher percentage asdetermined bythe
relevant authorities.3) None
Representative offices arepermitted to
undertake research, information andliaison
services only
Total membership oftheexchange willbe
based oneconomic needsMALAYSIA (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
4) Unbound except oneforeign national fora
management postperestablishment, subject
tomarket test4) Unbound except forthecategories of
natural persons referred tounder market
access
INSURANCE
SERVICES
Direct insurance
(non-life)1) Soliciting andadvertising inMalaysia is
notallowed
Other thanmarine andaviation insurance
associated withgoods ininternational
transit, direct insurance abroad requires
approval. Approval maybedenied if
underwriting capacity andskillare
available inMalaysia.1) None
2) Other thanmarine andaviation insurance
associated withgoods ininternational
transit, direct insurance abroad requires
approval. Approval maybedenied if
underwriting capacity andskillare
available inMalaysia.2) None
3) Offshore insurance companies inLabuan
arenotpermitted toaccept direct insurance
ofMalaysian risks3) Branching isonlypermitted forinsurance
companies withforeign equity not
exceeding 30percent
Direct insurance inMalaysia ispermitted
onlythrough existing licensed insurance
companiesUnbound forspecial assistance to
Malaysian-owned insurance companies to
promote their development
4) Unbound except asindicated inthefinance
sector horizontal section4) Unbound except asindicated inthefinance
sector horizontal section
GATS/SC/52
Page 49MALAYSIA (continued)GATS/SC/52
Page 50
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 1),2)Unbound
3) Investment-linked insurance business and
newlifeinsurance products provided by
offshore insurance companies require
approval3) Branching isonlypermitted forinsurance
companies thathave foreign equity not
exceeding 30percent
Underwriting oflifeinsurance of
Malaysian residents byoffshore insurance
companies inLabuan isnotallowedUnbound forspecial assistance to
Malaysian-owned insurance companies to
promote their development
Lifeinsurance inMalaysia isonly
permitted through existing licensed
insurance companies
4) Unbound except asindicated inthefinance
sector horizontal section4) Unbound except asindicated inthefinance
sector horizontal section
Reinsurance and
retrocession
(lifeandnon-life)1),2)Outward reinsurance ispermitted onlyif
local capacity isnotavailable1),2)Voluntary cession upto30percentof
each class ofnon-life reinsurance business
totheMalaysian National Reinsurance
Bhd.
Unbound forfiscal incentives topromote
reinsurance inMalaysiaMALAYSIA (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) Unbound fornewlicences
Entry islimited toacquisition ofexisting
companies. Aggregate foreign equity in
each company shall notexceed 30percent.
Entry asanoffshore reinsurance company
isconfined toLabuan only3) Obligation onallregistered insurers to
maximise national capacity before any
outward reinsurance
Measures granting special position to
Malaysian National Reinsurance Berhad
shall notapply
4) Unbound except asindicated inthefinance
sector horizontal section4) Unbound except asindicated inthefinance
sector horizontal section
Insurance intermediation
asfollows:
-offshore broking
-offshore
underwriting; and
-offshore insurance
management
services1),2)Insurance intermediation isnotallowed
except forreinsurance broking. Insurance
broking services arefurther limited to
offshore companies inLabuan
3) Establishment isconfined totheFederal
Territory ofLabuan
Broking fordirect insurance ofMalaysian
riskisnotpermitted1),2)None
3) None
Insurance broker shall onlybroke direct
insurance product oflicensed offshore
insurance companies inMalaysia
Underwriting manager shall onlyprovide
services tolicensed offshore insurance
companies inMalaysia
GATS/SC/52
Page 51MALAYSIA (continued)GATS/SC/52
Page 52
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 inthefinance
sector horizontal section4) Unbound except asindicated inthefinance
sector horizontal section
Services auxiliary to
insurance, asfollows:
a) Consultancy (excludes
insurance agency
services toinsurance
industry);
b)Actuarial risk
assessment;
c)Risk management;
and1) Provision ofactuarial services isonly
permitted foroffshore insurance and
reinsurance companies inLabuan
2) None
3) Offshore companies inLabuan arenot
allowed toprovide services toMalaysian
residents
4) Unbound except asindicated inthefinance
sector horizontal section1) None
2) None
3) None
4) Unbound except asindicated inthefinance
sector horizontal section
d)Maritime loss
adjustingMALAYSIA (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
HEALTH RELATED
SOCIAL SERVICES
Hospital Services
Private hospital services
(93110*)1),2)None
3) Economic needs test;
Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandaggregate foreign
shareholding inthejoint-venture
corporation shall notexceed 30percent;
and1),2)None
3) Establishment offeeder outpatient clinics is
notpermitted
Thejoint-venture corporation shall operate
ahospital withaminimum of100beds
4) Unbound except asindicated inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
GATS/SC/52
Page 53MALAYSIA (continued)GATS/SC/52
Page 54
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
TOURISM AND
TRAVEL RELATED
SERVICES
Hotel, tourist resort and
restaurant services
covering themanagement
andoperation ofhotels
orresorts, including
outlets which maynot
necessarily include
ownership ofsuch
properties
1. (641, 642, 643)
2. (87909)1) Unbound duetolackoftechnical feasibility
2) None
3) Entry forservice activities under CPC 641,
642, 643ispermitted onlythrough a
locally incorporated joint-venture
corporation withMalaysian individuals or
Malaysian-controlled corporations orboth
andaggregate foreign shareholding inthe
joint-venture corporation shall notexceed
30percent; or1) Unbound duetolackoftechnical feasibility
2) None
3) None
Entry forservice activity under CPC 87909
ispermitted onlyforthepurposes of
services contract awarded inMalaysia and
implemented through abranch
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
Travel agency andtour
operator services
(7471)1) Unbound duetolackoftechnical feasibility
2) None1) Unbound duetolackoftechnical feasibility
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 through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandaggregate foreign
shareholding inthejoint-venture
corporation shall notexceed 30percent;
and3) None
Establishment ofanother office requires
additional licence
4) Unbound except asindicated in1a)inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
RECREATIONAL,
CULTURAL AND
SPORTING SERVICES
Other entertainment
services
(96191, 96192, 96194)1) Unbound duetolackoftechnical feasibility
2) None1) Unbound duetolackoftechnical feasibility
2) None
3) Entertainment services maybesupplied
onlybyanatural person3) None
GATS/SC/52
Page 55MALAYSIA (continued)GATS/SC/52
Page 56
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 in2a)inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
Participation ofMalaysian entertainers/
artistes mayberequired based onthe
guidelines oftheMinistry ofCulture, Arts
andTourism
Sports events
management services
(96411, 96412)1) Unbound duetolackoftechnical feasibility
2) None
3) Only through aMalaysian-controlled
corporation acting asthelocal sponsor1) Unbound duetolackoftechnical feasibility
2) None
3) None
4) Unbound except asindicated in2a)inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
TRANSPORTATION
SERVICES
International maritime
transportation services
excludes cabotage
(7211, 7212)1),2)None 1),2)None Thefollowing services at
theportaremade
available tointernational
maritime transport
suppliers onreasonable
andnon-discriminatory
terms andconditions: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
3) Only through arepresentative office,
regional office orlocally-incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandaggregate foreign
shareholding inthejoint-venture
corporation shall notexceed 30percent
Malaysian registered vessels
Toregister avessel inMalaysia, the
following conditions must bemet:
1)Owner ofthatvessel must bea
Malaysian citizen orcorporation
incorporated inMalaysia;
2)Majority shareholding tobeheldby
Malaysians;
3)Majority oftheboard ofdirectors to
beMalaysians; and
4)Principal place ofbusiness tobein
Malaysia.
4) Unbound except asindicated in1a)andb)
and2c)inthehorizontal section. For
manning vessels, ratings ispermitted upto
25percent. Ship crew ispermitted to
disembark onlyforduration ofberth.3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access1) Pilotage
2) Towing andtug
assistance
3) Provisioning,
fuelling and
watering
4) Garbage collection
andballast waste
disposal
5) PortCaptain 's
services
6) Navigation aids
7) Shore-based
operational services
essential toship
operations,
including
communications,
water andelectrical
supplies
8) Emergency repair
facilities
9) Anchorage, berth
andberthing
services
GATS/SC/52
Page 57MALAYSIA (continued)GATS/SC/52
Page 58
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
Maritime agency services
covering marketing and
sales ofmaritime
transport andrelated
services andacting on
behalf ofthecompanies
organizing thecallofthe
shiportaking over
cargoes when required
(7454*)1),2)None
3) Only through arepresentative office,
regional office orlocally-incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandBumiputera
shareholding inthejoint-venture
corporation ofatleast 30percent
4) Unbound except asindicated in1a)andb)
and2a)andc)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
access
Vessel salvage and
refloating services except
oninland waters
(74540)1),2)None
3) Only through arepresentative office,
regional office orlocally-incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandBumiputera
shareholding inthejoint-venture
corporation ofatleast 30percent
4) Unbound except asindicated in1a)andb)
and2a)inthehorizontal section1),2)None
3) None
4) Unbound except forthecategories of
natural persons referred tounder market
accessMALAYSIA (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 SERVICES
Skills training services
covering theprovision of
training fortechnical,
supervisory and
production related
functional levels innew
andemerging
technologies asfollows:1),2)None
3) Only through alocally incorporated
joint-venture corporation withMalaysian
individuals orMalaysian-controlled
corporations orbothandaggregate foreign
shareholding inthejoint-venture
corporation shall notexceed 30percent;
and1),2)None
3) None
1)automated
manufacturing
technology;
2)advanced materials
technology;
3)biotechnology;
4)electronics;
5)information
technology; and
6)avionics/aviation
technology
(97090)Establishment oflocal branches requires
additional licenses
4) Unbound except asindicated inthe
horizontal section4) Unbound except forthecategories of
natural persons referred tounder market
access
GATS/SC/52
Page 59