Govt To Evaluate Possibility Of Liberalising Foreign Equity Caps In Certain Sectors - Tengku Zafrul

KUALA LUMPUR, July 15 (Bernama) -- The Ministry of Investment, Trade and Industry (MITI) needs to evaluate the possibility of liberalising foreign equity requirements in certain sectors amid ongoing trade negotiations with the United States (US), said its minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the issue that Malaysia has equity restrictions for foreign shareholders for certain sectors has been raised during the trade negotiations.

According to him, there is a request for Malaysia to relook at or liberalise sectors subject to foreign equity restrictions, as many countries have also been asked to do the same.

“For us, we need to consult those industries whether we are ready to liberalise those equity shareholding restrictions, especially when it comes to foreign equity restrictions that we have for many sectors.

“If you are a sovereign country and for strategic interests, are you willing to do that? So we need to study carefully what the impact is,” he said during a press conference on MITI's report card for the second quarter of 2025 today.

He said that some sectors are already fully liberalised, adding that the manufacturing sector is nearly all open, while for strategic sectors, foreign equity limits are still in place.

In addition, Tengku Zafrul noted that the ongoing trade negotiation with US representatives is now focusing on non-tariff issues, although no new terms have been raised.

“I have set a deadline for the negotiation team, and there are issues that we still need time for because they involve many agencies and ministries. We are trying to conclude it before US President Donald Trump's tariff deadline on Aug 1.

“We will continue to have another discussion this week and accelerate the discussion until the end of this month,” he added.

-- BERNAMA