Malaysia eases restrictions to boost property market

Malaysia eases restrictions to boost property market

KUALA LUMPUR (AP): More foreigners will be allowed to buy real estate in Malaysia under new guidelines announced Thursday to boost the property market.

Among others, foreign investors in the manufacturing sector who are exempted from getting a manufacturing license from the government can own industrial property or factories, a statement from Prime Minister Mahathir Mohamad's office said. But the investors are barred from renting out the property.

"This is to help foreigners own industrial lots for their manufacturing activities," said the statement, which was cited by national news agency, Bernama.

Foreign companies can also own, without equity conditions, offices or office space that cost more than 250,000 ringgit (US$66,000). The move is to encourage more corporate or regional headquarters to set up in Malaysia.

The ruling is also extended to foreign companies incorporated in countries that are part of the Association of Southeast Asian Nations who intend to set up joint-venture companies, or to operate in Malaysia.

ASEAN groups together Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Foreigners are also now allowed to own all types of residential and commercial property costing more than 250,000 ringgit ($66,000), either in existing or new projects, without having to set up a company with local equity.

Previously, this was only allowed for completed projects, or those that were 50 percent completed.

Mahathir had said in March that rules on foreign ownership of local property would be changed to provide a more liberal environment for foreign investors and to attract foreign direct investment.