Global Trade Alert
Global Trade Alert

Malaysia: Introduced relaxed FDI requirements and subsidies for local businesses under the second Budget 2020

Announcement

11 Oct 2020

In October 2020, Malaysia introduced several measures covering relaxed FDI requirements and subsidies to local businesses and SMEs in order to drive Malaysia's economic growth. 

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Number of interventions

9

7 certainly harmful

0 likely harmful

2 liberalising

List of interventions

Implementation date

11 Oct 2020

Revocation date:

No revocation date

Updated: 11 Oct 2020
Public procurement localisation In force

On 11 October 2020, Malaysia announced its second Budget 2020. Under this budget, Malaysia's government procurements worth RM 1.3 billion (USD 314.1 million) would be dedicated solely for loca...

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Updated: 11 Oct 2020
State aid, nes In force

On 11 October 2020, through the announcement of its second Budget 2020, Malaysia provided RM 1.1 billion (USD 265.8 million) for tourism industry under the Visit Malaysia 2020 through the following...

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Updated: 11 Oct 2020
Interest payment subsidy In force

On 11 October 2020, Malaysia introduced its second Budget 2020 that provided RM 550 million (USD 132.9 million) of Palm Oil Replanting Loan Fund for smallholders with collateral-free at a...

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Updated: 11 Oct 2020
Interest payment subsidy In force

On 11 October 2020, following the announcement of its second Budget 2020, Malaysia provided RM 500 million (USD 120.8 million) for an annual interest payment subsidy to reduce 2 percent of bor...

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Updated: 11 Oct 2020
Loan guarantee In force

On 11 October 2020, through the announcement of the second Budget 2020, Malaysia allocated RM 500 million (USD 120.8 million) to provide a financing guarantee through the enhancement of S...

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Updated: 11 Oct 2020
Financial grant In force

On 11 October 2020, Malaysia announced its second Budget 2020. Under this budget, Malaysia would provide a Smart Automation Matching Grant of RM 550 million (USD 132.9 million) to 2000 manufacturin...

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Updated: 11 Oct 2020
Financial grant In force

On 11 October 2020, through the announcement of the 2nd Budget 2020, Malaysia provided RM 500 million (USD 120.8 million) for SMEs to upgrade their systems for the following services: 

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Implementation date

11 Oct 2020

Revocation date:

11 Oct 2025

Updated: 11 Oct 2020
FDI: Financial incentive

On 11 October 2020, Malaysia provided RM 1 billion (USD 241.6 million) of customised packaged incentives for foreign investors from Fortune 500 and global unicorn companies in high technologies, ma...

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Implementation date

11 Oct 2020

Revocation date:

11 Oct 2021

Updated: 11 Oct 2020
FDI: Entry and ownership rule

On 11 October 2020, Malaysia announced its second 2020 Budget under the Pakatan government. Under this Bill, Malaysia lowered the threshold of property ownership by foreigners from RM 1 million (US...

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