KUALA LUMPUR (July 16): The Ministry of Investment, Trade and Industry (Miti) is discussing with regulators and key industries, including banking and power, about easing foreign ownership limits as part of efforts to reduce the 25% US tariff on Malaysian goods, according to Minister Tengku Datuk Seri Zafrul Abdul Aziz.
The discussions focus on the potential liberalisation of the rules, and its impact on the strategic sectors.
“Which sectors will be affected? I am sure you already know — these are strategic sectors governed by existing laws. We are still in talks with the industry players and regulators.
“For example, there is a limit in equity holding for trading sectors like banking and the power sector. So all of these,” Zafrul told reporters on the sidelines of the International Healthcare Week 2025 on Wednesday.
Malaysia caps foreign equity in sectors such as financial services and telecommunications which are deemed strategic. For example, the power sector limits foreign ownership to 49%, while commercial banks cap it at 30%. Non-tariff barriers are a key issue in talks with the US and some key sticking points are tied to Malaysia’s national interests, such as halal certification and government procurement.
Earlier this month, the US announced a 25% import tariff on all Malaysian goods but left the door open to negotiations before the levy comes into force on Aug 1.