Land Search & Acquisition

Foreigners may purchase agricultural land in Malaysia, but prior approval from the State Authority is mandatory under Section 433B of the National Land Code hhq.com.my. Each state sets minimum value or size thresholds for foreign purchases. For example, most states require a minimum price of RM1 million (≈US$230k) per property oneasia.legal, while in Johor and Selangor the minimum is RM2 million oneasia.legal. Some states also impose size thresholds (Johor requires at least 5–6 hectares for farmland purchases by foreigners) malaysianbar.org.my. Foreigners are prohibited from buying certain categories of land entirely – e.g. Malay Reserve Land  malaysianbar.org.my, low-cost housing units, and in some states, agricultural land (Selangor does not allow foreigners to buy agricultural land at all oneasia.legal). PHG will identify lands that meet the criteria (e.g. above the value threshold and permitted for foreign ownership) and obtain the necessary consents. Foreign buyers should also budget for a state levy on the purchase (many states charge a levy or fee as a condition of consent) hhq.com.my. State approval is discretionary but typically granted if all conditions are met, usually taking 3–6 months processing time oneasia.legal.

A company incorporated in Malaysia that is majority-owned by Malaysian citizens is generally treated like a local buyer. Such a company can acquire land without Section 433B consent (unless the land title itself has restrictions or falls under special regulations). If the company’s shareholders are all Malay, it may even purchase Malay Reserve Land (subject to state policies), though typically Malay Reserve lands are held by individuals. PHG assists in ensuring the corporate structure is clear and meets any Bumiputera equity requirements if applicable.

Foreign-Controlled Companies: Malaysian-incorporated companies with >50% foreign ownership are deemed “foreign interest” and subject to the same rules as foreign individualsoneasia.legal. In other words, setting up a local company will not bypass foreign investment rules if you retain majority foreign control. You would still need state approval under Section 433B hhq.com.my, meet the minimum price (e.g. >RM1 million) oneasia.legal and any size conditions, and avoid restricted lands. One advantage of using a company is the flexibility to bring in a Malaysian partner or Bumiputera equity if needed to meet certain policy conditions (for instance, large projects might require 30% local Bumiputera partnership per government guidelines oneasia.legaloneasia.legal). PHG can advise on the optimal ownership structure and handle the approval paperwork for foreign-invested companies.