Malaysia extends concession to 100% foreign equities

KUALA LUMPUR, Jan. 8 Kyodo

Malaysia has extended a concession allowing foreigners 100% ownership in certain manufacturing sectors, official news agency Bernama reported Monday.

The concession was granted following the 1997 Asian financial crisis. Applications received from July 31, 1998 until Dec. 31, 2000 to establish manufacturing projects were allowed 100% foreign ownership.

Because the ruling expired on Dec. 31, 2000, Bernama reported International Trade and Industry Minister Rafidah Aziz as saying it would be extended for another three years.

''We hope that this extension of flexibility will provide further impetus for investors to continue investing in the manufacturing industry,'' the report quoted her as saying.

However, the 100% foreign equity ruling does not apply in certain sectors ''where Malaysian small and medium-scale companies have the appropriate capabilities and expertise.''

The sectors involved are paper packaging, plastic packaging (bottles, films, sheets and bags), plastic injection molded components, metal stamping, metal fabrication and electroplating, wire harness, printing and steel service centers.

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