"how to do business in Malaysia from a legal perspective"

DOING BUSINESS IN MALAYSIA FROM A LEGAL PERSPECTIVE Loh Chang Woo C W Loh & Associates [email protected] 10 REASONS WHY YOU SHOULD DO BUSINESS IN MALAYSIA

Strategic location Infrastructur e Business Friendly Political

Stability Wealth of Opportunitie s Incentives Talent Pool Competitive

Business Cost Legal Framework Trading Nation [email protected]

PWC crystal ball for Malaysia in 2050 [email protected] GAME CHANGER Chinas Belt & Road Initiatives 21 ports under China-Malaysia Port Alliance (Sept 2017) Melaka Gateway-East Coast Rail Link-Kuantan Port

High Speed Rail Digital Free Trade Zone (DFTZ) led by Alibaba Asean Economic Community [email protected] C W LOH & ASSOCIATES: [email protected] High Speed Rail Logistics and Trade

Facilitation Masterplan (Masterplan) [email protected] THE 5 STRATEGIC SHIFTS OF MASTERPLAN Strengthening the institutional and regulatory framework Enhancing trade facilitation mechanisms Developing infrastructure and freight demand

Strengthening technology & human capital Internationalizing logistics services [email protected] [email protected] [email protected] Heart of South East Asia

USD 1 = RM4.18 (as at 18 Sept 2017) 31 million 329,847 sq km

Malaysi a Peninsular Malaysia & East Malaysia [email protected] C W LOH & ASSOCIATES: [email protected]

English Common Law Judiciary Federal Constitution Malaysi a Legal

System Executive Yang diPertuan Agong & Rulers Parliament [email protected]

Kemama n Port Bintulu Port Penan g Port Port Klang

Johor Port Ports in Malaysi a Port of Tanjung Pelepas

Kuanta n Port [email protected] ESTABLISHING BUSINESS PRESENCE 1. Sole proprietorship 2. Partnership (conventional or limited liability) 3. Locally incorporated company (limited by shares or guarantee / unlimited) 4. Branch of foreign corporation

5. Representative office 6. Labuan offshore company [email protected] LOCAL EQUITY How does it come into play? How does it

affect you? What is Bumiputera ? [email protected] LOCAL EQUITY PARTICIPATION No legislation restricts foreign equity Local equity participation in foreign investment is imposed via administrative / non-legal control

C W LOH & ASSOCIATES: [email protected] EXPATS IN MALAYSIA Key Post Time Post Minimum Paid Up

Capital Minimum Monthly Salary [email protected] REGULATORY FRAMEWORK FOR LOGISTICS SERVICES 1. Freight Forwarding and Customs Brokerage

Services 2. Warehousing Services 3. Land Transport Operations [email protected] SUMMARY ON LOCAL EQUITY PARTICIPATION Logistics Services Local Equity

Freight Forwarding and Customs Brokerage Services Min 51% of Bumiputra Warehouse Services Public bonded Warehouse Min 30% of Bumiputra

Private bonded Warehouse N/A Land Transport Operations License A: Providing to Third Party

License C: For own use C W LOH & ASSOCIATES: [email protected] Min 51% Local incl 30% Bumiputra 100% foreign equity PIONEER STATUS A logistics provider may apply to the Minister of

International Trade and Industry of Malaysia (MITI) for a pioneer status in relation to the provision of integrated logistics services. 5 YEARS TAX RELIEF! [email protected] SUMMARY OF CONDITIONS Activities

Conditions Integrated Logistics Services Warehousing, freight forwarding and transportation + distribution / value added services / supply chain management

To qualify for tax incentive 60% local equity 20 commercial vehicles 5000 m2 warehouse space International Integrated Logistics Services Seamless door-to-door

services as above on a regional or global basis 100% foreign equity allowed C W LOH & ASSOCIATES: [email protected] C W LOH & ASSOCIATES: [email protected] BASIC INVESTMENT LAWS

Companies Act 2016 Labour Law Foreign Exchange Law Land Law

Taxes [email protected] COMPANIES ACT REFORM Single shareholde r Single

director No par value Constitutio n is optional No Audit

[email protected] LABOUR LAW Employmen t Act 1955 Industrial Relations Act 1967

Social Security Act Employmen t Provident Fund [email protected] LABOUR LAW Minimum

Retirement Minimum Wage Post employme nt restraint Security of Tenure

[email protected] LAND LAW National Land Coe 1965 Torrens system

Indefeasibilit y of title [email protected] LAND LAW Freehold Agriculture Tenure

of Land Categorie s of Use Leasehold Building Commercial or residential

Industry [email protected] LAND LAW Tenancy Registratio n Lease

[email protected] LAND LAW Any restriction on acquisition of properties by foreign interest? YES, except for industrial land

C W LOH & ASSOCIATES: [email protected] LAND LAW Is there compensation for compulsory land acquisition? YES C W LOH & ASSOCIATES: [email protected] FOREIGN EXCHANGE LAW

Central Bank of Malaysia: www.bnm.gov.my Free mobility of inflows and outflows of capital for investments: Conversion of foreign currency to ringgit Foreign currency borrowings Ringgit borrowing from licensed onshore banks for real estate Free to repatriate capital, profits, dividends, interest and rental income in foreign currency [email protected]

TYPES OF TAXES Corporate tax Personal tax Withholdin g tax

Real property gains Tax Goods & Services Tax Stamp duty Import duty

[email protected] OTHER LAWS Competition Law Personal Data Protection Act

Intellectual Properties Environment al law [email protected] DISPUTES RESOLUTION Arbitration

Court Mediation Industrial Court [email protected] C W LOH & ASSOCIATES: [email protected]

GOVERNMENT AGENCIES Malaysia Industry Development Authority www.mida.gov.m y Immigration www.imi.gov.my

Companies Commission of Malaysia www.ssm.gov.m y Inland Revenue Board www.hasil.gov.m y

[email protected] C W LOH & ASSOCIATES Loh Chang Woo President, Malaysia China Legal Cooperation Society Advocate & Solicitor | Arbitrator (CIETAC) | Mediator | Notary Public Mobile: +6016 9000 339 E-mail: [email protected]

Business Friendly C W LOH & ASSOCIATES: [email protected] According to World Bank Ease of Doing Business, Malaysia is ranked No.5 in Asia

Talent Pool WEF Human Capital Index 2016- Capacity of Workforce C W LOH & ASSOCIATES: [email protected] The capacity of workforce in Malaysia ranked top 35 out of 130 countries Competitive Business Cost

PwC Cities of Opportunity 7,2016 (Cost pillar) C W LOH & ASSOCIATES: [email protected] Malaysia ranked 5 in PwC Cities of Opportunity 7, 2016 (in Cost pillar) Competitive Business Cost

C W LOH & ASSOCIATES: [email protected] KL has one of the lowest Grade A office rental rates World Banks Doing Business Report 2017 C W LOH & ASSOCIATES: [email protected]

In World Banks Doing Business Report 2017, Malaysia ranked 3rd in protecting minority investors Liveability C W LOH & ASSOCIATES: [email protected] SAVE THOUSANDS AS A MEDICAL TOURIST IN THESE 5 COUNTRIES

http://www.huffingtonpost.com/internationallivingcom/medical-tourism_b_115 73814.html C W LOH & ASSOCIATES: [email protected] C W LOH & ASSOCIATES: [email protected]