ORGANISATION MONDIALE  
DU COMMERCE  S/DCS/W/MYS 
24 janvier 2003 
 (03-0478) 
Commerce des services Original:   anglais 
 
 
 
 
MALAISIE 
 
Projet de version codifiée de la Liste d'engagements spécifiques1 
 
 
 On trouvera ci-joint un projet de version codifi ée de la Liste d'engagements spécifiques de la 
Malaisie  en format Word.  Ce document ne  remplace pas les engagements juridiquement 
contraignants souscrits par la Malaisie dans sa Liste d'enga gements spécifiques (GATS/SC/52; 
S/L/32; GATS/SC/52/Suppl.2; GATS/SC/52/Suppl.3).   Est joint au projet de liste codifiée un projet de version codifiée de la Liste d'exemptions de 
l'article II (NPF) de la Malaisie (GATS/ EL/52 et GATS/EL/52/Suppl.1) en format Word. 
 
 Les projets de versions codifiées de la liste et de la Liste d'exemptions de l'obligation NPF ont 
été établis par le Secrétariat, à la demande des Me mbres, pour faciliter le processus de négociation, y 
compris la présentation des offres initiales. 
 
__________  
 
 
                                                           
1 Le présent document a été établi, en anglais seulemen t, par le Secrétariat sous sa propre responsabilité 
et sans préjudice des positions des Membres ni de le urs droits et obligations dans le cadre de l'OMC.  
 S/DCS/W/MYS 
Page 2 MALAYSIA – SCHEDULE OF SPECIFIC COMMITMENTS 
 
Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
I. HORIZONTAL 
COMMITMENTS    
 
 ALL SECTORS 
INCLUDED IN THIS SCHEDULE UNLESS 
OTHERWISE 
INDICATED 
    
 3) Acquisition, Mergers and Take-overs  
 The acquisition of assets or interests of 
Malaysian companies and businesses, mergers 
or take-overs requires approval and apply to 
the following: 
 
 (a) the acquisition of the voting rights of a 
 Malaysian corporation by any single  foreign interest or associated group of 15 
 per cent or more, or an aggregate foreign 
 interest of 30 per cent or more or  exceeding RM5 million in value; 
 3) Land, Property and Real Estate
  
 Approval may be denied if the acquisition, 
disposal or dealing of land or any interest in 
land, property and real estate is undertaken for 
speculative or non-productive purpose or for purposes which may conflict with the interest of 
the State. 
 
 Incentives/Preferences
 
 Incentives are limited to eligible  Malaysian-
owned corporations engaged in service sectors promoted by the Government.  
  (b) any proposed acquisition of any assets or 
 interests by any means which will result 
 in ownership or control passing to foreign 
 interest; and 
 
 (c) control of Malaysian corporations through 
 any form of joint-venture agreement, 
 management agreement, technical 
 assistance agreement or other  arrangements. 
 
 Approval is normally granted.  However it 
may be denied in circumstances where the 
proposed investment conflicts with the interest 
of the State.  Any measure and special preference granted to 
Bumiputera, Bumiputera status companies, trust 
companies and institutions set up to meet the 
objectives of the New Economic Policy (NEP) and the National Development Policy (NDP) 
shall be unbound. 
 
 Corporations in which the Government has an 
interest shall, in acquiring services, give first consideration to service suppliers in which the 
Government has an interest.  This requirement 
does not prevent the acquisition of services from other service suppliers where their 
services are competitive in terms of price, 
quality and delivery.   
  S/DCS/W/MYS
 Page 3Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 4) Unbound except for measures affecting the 
entry and temporary stay of natural persons defined below: 
 4) Unbound except for the categories of natural 
persons referred to under market access  
 1. Intra-corporate Transferees  
  (a) senior managers being persons within an 
 organization having proprietary 
 information of the organization and who  exercise wide latitude in decision making 
 relating to the establishment, control and 
 operation of the organization being  directly responsible to the CEO and 
 receive only general supervision or 
 direction from the board of directors or  partners of the organization; and 
   
  (b)  two specialists or experts per 
 organization being persons within the 
 organization who possess knowledge at 
 an advanced level of continued expertise 
 and who possess proprietary knowledge 
 of the organization's new service products  and technology, research equipment and 
 techniques or management. Additional 
 specialists or experts may be allowed  subject to market test and the training of 
 Malaysians through an acceptable training 
 programme in the relevant services sector  or subsector: 
   
   Provided that such  persons are employees 
 of the foreign service supplier and have 
 been in the employment of that foreign 
 service supplier for a period of not less  than one year imme diately preceding the 
 date of their application for a work permit 
 and he is to serve in at least a similar  capacity.    
 S/DCS/W/MYS 
Page 4 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 2. Others  
  (a) specialists or experts being persons who 
 possess knowledge at an advanced level 
 of continued expertise and who possess  proprietary knowledge of the 
 organizations's products and services 
 subject to market test and the employment  of Malaysians as counterparts and/or 
 training of Malaysia ns through acceptable 
 training programmes in the relevant  services sector or subsector; 
   
  (b) professionals being persons who possess 
 necessary academic credentials,  professional qualifications, experience 
 and/or expertise which have been duly 
 recognized by the professional bodies in  Malaysia and registered with those 
 respective professional bodies; and 
   
  (c) business visitors being persons not based 
 within Malaysia, receiving no  remuneration from a source located 
 within Malaysia, who have been 
 employed for at l east one year by a 
 foreign service supplier, whose entry and 
 temporary stay is for the purposes of 
 negotiating for the sale of services or  entering into agreements to sell services 
 for that service supplier and who will not 
 engage in direct sales to the general  public.    
  S/DCS/W/MYS
 Page 5Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 3. Entry and stay of natural persons defined in 
categories 1 (a) and (b) and 2 (a) and (b) shall not exceed a total of five years. For category 2 
(c), the period of stay shall not exceed a total 
of 90 days. 
   
II. SECTOR SPECIFIC 
COMMITMENTS1    
 
1. BUSINESS SERVICES 
    
A. Professional Services  
    
 Legal services 
 covering advisory and 
consultancy services 
relating only to home country laws, international 
law and offshore 
corporation laws of 
Malaysia 
 (CPC 8619) 1), 2) None 
3) Only through a corpora tion incorporated in the 
Federal Territory of Labuan. 
  Legal services shall only be supplied to 
offshore corporations established in the 
Federal Territory of Labuan. 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 1), 2) None 
3) None 
 
  
 
 
4) Unbound except for the categories of natural 
persons referred to under market access  
                                                           
 1 An asterisk against a CPC code  number indicates that the corres ponding service subsector in this schedule covers only a part o r parts of the service subsector classified 
 under the CPC concordance.  
 S/DCS/W/MYS 
Page 6 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Accounting, auditing and 
bookkeeping services 
 (CPC 862) 
 1), 2) None 
 3) Only through a locally registered partnership 
with Malaysian accountants or Malaysian 
accounting firms and aggregate foreign interests shall not exceed 30 per cent 
4) Unbound except as indicated in the horizontal 
section 
 
 In respect of 2 (b), residency is required for 
registration 
 1), 2) Auditing services must be authenticated by 
 a licensed auditor in Malaysia 
3) None 
 
  
4) Unbound except for the categories of natural 
persons referred to under market access 
  
  
 
  
4) The qualifying 
examination to determine the 
competence and 
ability to supply the service for the 
purposes of 
registration with the professional bodies 
will be conducted in 
the English language 
 
 Taxation services 
 (CPC 863) 
 1), 2) None 
 
3) Only through a locally registered partnership 
with Malaysian accountants or Malaysian 
accounting firms and aggregate foreign interests in the partnership shall not exceed 30 
per cent 
4) Unbound except as indicated in the horizontal 
section 
 
 In respect of 2 (b), residency is required for 
registration 
 1), 2) Taxation services mu st be authenticated by  
 a licensed auditor in Malaysia 
3) None 
 
  
 
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 
 
  
 
4) The qualifying 
examination to 
determine the 
competence and ability to supply the 
service for the 
purposes of registration with the 
professional bodies 
will be conducted in the English language  
  S/DCS/W/MYS
 Page 7Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Architectural services 
 (CPC 8671)  1), 2) None 
  
3) Architectural services may be supplied only 
by a natural person 
4) Unbound except as indicated in the horizontal 
section and, in respect of 2 (b), only an 
architect who is a consultant to a project wholly financed by a foreign government or 
implemented under a bilateral arrangement 
between governments subject to temporary registration for a period of one year per 
temporary registration 
 1), 2) Architectural services must be 
 authenticated by a regi stered architect in 
 Malaysia 
3) None 
 4) Unbound except for the categories of natural 
persons referred to under market access 
   
  
 
 4) The qualifying 
examination to 
determine the competence and 
ability to supply the 
service for the purposes of 
registration with the 
professional bodies will be conducted in 
the English language 
 
 Engineering services  (CPC 8672) 
 1), 2) None 
 
 
3) Engineering services may be supplied only by 
a natural person 
4) Unbound except as indicated in the horizontal 
section and in respect of 2 (b), subject to 
temporary registration for a period of one year 
per temporary registration 
 1), 2) Engineering services  must be authenticated 
 by a registered professional engineer in 
 Malaysia 
3) None 
 
4) Unbound except for the categories of natural 
persons referred to under market access 
 
  
 
 
 
 
4) The qualifying 
examination to 
determine the 
competence and ability to supply the 
service for the 
purposes of registration with the 
professional bodies 
will be conducted in the English language  
 S/DCS/W/MYS 
Page 8 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Integrated engineering 
services (CPC 8673) 
 1), 2) None 
  
 
3) Only through a representative office, regional 
office or locally incorporated joint-venture 
corporation with Malaysian individuals or 
Malaysian-controlled corporations or both for the purpose of services contract awarded in 
Malaysia. 
  The aggregate foreign shareholding in the 
joint-venture corporation shall not exceed 30 
per cent 
 1), 2) Integrated engineering services must be 
 authenticated by the relevant registered  professionals in Malaysia 
3) None 
  
  
 
  Establishment of such joint-venture 
corporation is only for a duration necessary to 
complete the services contract 
4) Unbound except as indicated in the horizontal 
section and in respect of 2 (b), for a period of 
up to one year or the duration necessary to 
complete the services contract  
 
 4) Unbound except for the categories of natural 
persons referred to under market access  
 
 4) The qualifying 
examination to 
determine the 
competence and 
ability to supply the service for the 
purposes of 
registration with the professional bodies 
will be conducted in 
the English language  
  S/DCS/W/MYS
 Page 9Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Medical speciality services 
  covering forensic medicine, 
nuclear medicine, 
geriatrics, microvascular surgery, neurosurgery, 
cardiothorasic surgery, 
plastic surgery, clinical immunology and oncology, 
traumatology, 
anaesthesiology, intensive care specialist, child 
psychiatry and physical 
medicine 
 (CPC 93122) 
 1), 2) None 
3) Medical speciality services may be supplied 
only by a natural person 
4) Unbound except as indicated in 2 (a) in the 
horizontal section 
 
 1), 2) None 
3) None  
4) None other than:   
 practice only in private hospitals of at least 100 
beds;   
 practice to be only at a specified location and a 
change of location requires approval; and  
 the setting up of individual or joint group 
practices is not permitted. 
  
  
4) The qualifying 
examination to determine the 
competence and 
ability to supply the service will be 
conducted in the 
English language 
 
B. Computer and Related 
Services  
    
 Consultancy services 
related to the installation of 
computer hardware 
 (CPC 841)  1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled corporations or both and the aggregate foreign 
shareholding in the joint-venture corporation 
shall not exceed 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 
 1), 2) None 
3) None 
 
  
 
 4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Consultancy services 
related to software 
implementation covering advisory and 
implementation services for 
customised software 
 (CPC 842) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian individuals or Malaysian-controlled 
corporations or both and the aggregate foreign 
shareholding in the joint-venture corporation shall not exceed 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 1), 2) None 
3) None 
  
 
  
4) Unbound except for the categories of natural 
persons referred to under market access  
  
 S/DCS/W/MYS 
Page 10 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Database services 
 (CPC 8440)  1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled 
corporations or both and the aggregate foreign shareholding in the joint-venture corporation 
shall not exceed 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 
 1), 2) None 
3) None  
 
  
 
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Computer software 
development services 
  covering development of 
new software for general 
application, including, ready-made software 
packaged for general 
application 
 (CPC 842*) 
 1), 2), 3)    None 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 
 
 1), 2), 3)    None 
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
C. Research and Development 
Services  
    
 Research and experimental 
development services on 
social sciences and humanities (CPC 8520 
except 85203 and 85204) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian individuals or Malaysian-controlled 
corporations or both and the aggregate foreign 
shareholding in the joint-venture corporation shall not exceed 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 1), 2) None 
3) None 
  
 
  
4) Unbound except for the categories of natural 
persons referred to under market access  
  
  S/DCS/W/MYS
 Page 11Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
E. Rental/Leasing Services 
without Operators  
    
 Relating to ships exclude 
cabotage and offshore 
trades (CPC 83103) 
 1), 2) None 
3) Only through a representative office, regional 
office or Malaysian-controlled corporation acting as an agent 
4) Unbound except as indicated in the horizontal 
section 
 1), 2) None 
3) None 
  
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Relating to aircraft 
 (CPC 83104)  1), 2) None 
3) Only through a representative office, regional 
office or Malaysian-controlled corporation 
acting as an agent 
4) Unbound except as indicated in the horizontal 
section 
 1), 2) None 
3) None  
 
4) Unbound except as indicated in the horizontal 
section 
  
 
 Relating to construction 
and mining equipment and 
industrial plant and 
equipment 
 (CPC 83107*) 
 1), 2) None 
3) Only through a representative office, regional 
office or Malaysian-controlled corporation 
acting as an agent 
4) Unbound except as indicated in the horizontal 
section 1), 2) None 
3) None 
 
 
4) Unbound except for the categories of natural 
persons referred to under market access  
  
 S/DCS/W/MYS 
Page 12 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
F. Other Business Services  
    
 Advertising services 
 (CPC 8711, 8712, 8719) 
 1) Commercial presence is required 
2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian individuals or Malaysian-controlled 
corporations or both and the aggregate foreign 
shareholding in the joint-venture corporation shall not exceed 30 per cent 1) Unbound 
2) None 
3) None 
  
 
  
 
  Advertisement through electronic media  
 Advertisement must have at least 80 per cent 
local content and be made in Malaysia 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 
  
  
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 Management consulting 
services  
 covering advisory, 
guidance and operational 
assistance services 
concerning management of 
the transmission of non-conventional energy 
 (CPC 8650*) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled 
corporations or both and Bumiputera 
shareholding in the joint-venture corporation 
is at least 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 
 1), 2) None 
3) None  
 
 
 
 4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Management consulting 
services  
 covering advisory, 
guidance and operational 
assistance on 
environmental management services including risk 
assessment services 
 (CPC 8650*) 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian individuals or Malaysian-controlled 
corporations or both and Bumiputera 
shareholding in the joint-venture corporation is at least 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 1), 2) None 
3) None 
  
 
  
4) Unbound except for the categories of natural 
persons referred to under market access  
  
  S/DCS/W/MYS
 Page 13Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Management consulting 
services  
 covering advisory and 
guidance in the field of 
pharmacy as follows: 
- Basic material 
manufacturing consultancy 
in the manufacture of drugs in raw material form; 
- New systems of drug 
delivery; 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled 
corporations or both and Bumiputera shareholding in the joint-venture corporation 
is at least 30 per cent 
4) Unbound except as indicated in 1 (a) and( b) 
and 2 (a) and (c) in the horizontal section 
 1), 2) None 
3) None  
 
  
 
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
- Biotechnology - new 
techniques for influencing 
the process and products of 
living cells; 
- New techniques in drug 
development and methods 
of producing drugs and vaccine; and 
- Vaccine production. 
 (CPC 8650*) 
    
 Management consulting 
services 
 covering advisory and 
guidance on International Value-Added Network 
Services, rural telecom 
development and human resource development in 
telecommunications 
 (CPC 8650*) 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled corporations or both and Bumiputera 
shareholding in the joint-venture corporation 
is at least 30 per cent 
4) Unbound except as indicated in 1 (a) and( b) 
and 2 (a) and (c) in the horizontal section 
 1), 2) None 
3) None 
 
  
 
 4) Unbound except for the categories of natural 
persons referred to under market access 
  
  
 S/DCS/W/MYS 
Page 14 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Services incidental to 
agriculture and fishing covering only specialised 
consultancy, advisory and 
operational assistance on crop and fisheries 
management, including, 
value-added services such as preservation techniques, 
etc. (CPC 881*, 882*) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled 
corporations or both and Bumiputera shareholding in the joint-venture corporation 
is at least 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 1), 2) None 
3) None  
 
  
 
4) Unbound except for the categories of natural 
persons referred to under market access  
 
 Services incidental to 
manufacturing 
 (CPC 884, 885 except 
88442) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled corporations or both and Bumiputera 
shareholding in the joint-venture corporation 
is at least 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 1), 2) None 
3) None 
 
  
 
 4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Technical testing and 
analysis services 
 (CPC 8676 except 86764) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled 
corporations or both and Bumiputera shareholding in the joint-venture corporation 
is at least 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 
 1), 2) None 
3) None  
 
  
 
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Student placement services  - covering promoting, 
recruiting and facilitating 
students for studies outside Malaysia 
 (CPC 87909) 1), 2), 3) None 
4) Unbound except as indicated in the horizontal 
section 
 1), 2), 3) None 
4) Unbound except for the categories of natural 
persons referred to under market access 
  
  
  S/DCS/W/MYS
 Page 15Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Market research and public 
opinion polling services 
 (CPC 864) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled 
corporations or both and Bumiputera shareholding in the joint-venture corporals at 
least exceed 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 
 1), 2) None 
3) None  
 
  
 
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Translation and 
interpretation services 
 (CPC 87905) 
 1), 2) None 
3) Translation and interpretation services may be 
supplied only by a natural person 
4) Unbound except as indicated in 2 (a) in the 
horizontal section 
 
 1), 2) None 
3) None  
4) Unbound except for the categories of natural 
persons referred to under market access. 
 
 Translation and/or interpretation from the 
English language to the Malay language or vice-versa is not permitted 
  
 
 Convention and exhibition 
management services  
 covering the provision of 
planning, organizational, 
management and marketing 
services for conventions and other similar events 
 (CPC 87909) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian individuals or Malaysian-controlled 
corporations or both and aggregate foreign 
shareholding in the joint-venture corporation shall not exceed 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 
 1), 2) None 
3) None 
  
 
  
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Landscaping services 
 covering the provision of 
advisory, planning and 
designing services for the 
aesthetic landscaping of golf courses and theme 
parks (CPC 86742*) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled 
corporations or both and the aggregate foreign shareholding in the joint-venture corporation 
shall not exceed 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 1), 2) None 
3) None  
 
  
 
4) Unbound except for the categories of natural 
persons referred to under market access  
  
 S/DCS/W/MYS 
Page 16 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Operational Headquarters 
(OHQ) Services  
 covering general 
management and 
administration, business planning, procurement of 
raw materials, technical 
support, marketing control and sales promotion 
planning, training and 
personnel management, provision of treasury and 
fund management services 
and research and development 1), 2) Unbound due to lack of technical 
 feasibility 
3) Only through a locally incorporated wholly 
foreign-owned company. 
  A foreign-owned company, a regional office 
of a foreign-owned company which transfers 
its OHQ services to Malaysia, a regional office of a foreign-owned company 
established in Malaysia and a foreign-owned 
company which is already incorporated in Malaysia may seek to qualify as an OHQ. 
 
 OHQ must operate in Malaysia and fulfil the 
following criteria: 1), 2) Unbound due to lack of technical feasibility 
 3) None  
 carried out by a company in 
Malaysia for its offices and 
related companies outside Malaysia.  Services 
rendered by OHQ 
companies are limited to 
establishments engaged in 
business related to the following sectors or 
subsectors: 
  Sea and air services, 
Communication services, 
Tourism services, Professional and 
Consulting services 
 (CPC 87909)  
 (a) carry out at least 3 of the OHQ service 
 activities; 
 
 (b) have a sizeable network of companies 
 outside Malaysia which includes the 
 parent company or its head office and 
 related companies; 
 
 (c) have a well established foreign-owned 
 company which is sizeable in terms of  assets and employees; 
 
 (d) have a network of companies with 
 substantial number of qualified 
 executives, professionals, technical and 
 other supporting personnel; 
  
 
  
  
 
  (e) be able to make decisions independently 
 without consultations with its head office  or parent company located outside 
 Malaysia;    
  S/DCS/W/MYS
 Page 17Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
  (f) be able to contribute to the Malaysian 
 economy by: 
 
  (i)  using services such as legal, 
  accounting etc. provided by   Malaysians; 
 
  (ii) creating job opportunities for 
  Malaysians; 
 
  (iii) enabling greater inflow of  
  foreign funds. 
 
4) Unbound except as indicated in the horizontal 
section  
  
 
  
 
  
 
  
 
4) Unbound except for the categories of natural 
persons referred to under market access   
 S/DCS/W/MYS 
Page 18 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
2. COMMUNICATION 
SERVICES 
    
C. Telecommunication 
Services2 
    
 Basic Telecommunications  
 
 Basic local, inter-exchange 
and international services;  
supplied over public 
telecommunications transport networks using 
any network technology;  
facilities-based;  in each of the market segment 
    
1. Voice service (wired or 
wireless) 
2. Packet-switched data 
transmission services, 
including frame-relay 
services 
3. Circuit-switched data 
transmission services 
4. Facsimile service 1) None 
2) None 
3) Only through acquisition of shares of existing 
licensed public telecommunications operators: 
 - Foreign shareholding of up to 30 per cent 
 in these service providers is allowed 
4) Unbound except as indicated in horizontal 
commitments. 1) None 
2) None 
3) None 
 
 
 4) Unbound except as indicated in horizontal 
commitments. Pro-competition regulatory  
principle in respect of 
interconnection 
arrangement and 
competition (Refer to 
Annex I). 
5. Private leased circuit 
service 
6. Domestic/International 
satellite services and 
satellite links/capacities 
(inclusive of mobile satellite)    
7. Satellite earth stations 
8. International switching and 
other international gateway 
facilities    
                                                           
 2 Excluding broadcasting services as  defined under Broadcasting Act 1988.  
  S/DCS/W/MYS
 Page 19Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
9. Mobile services - 
analogue/digital cellular 
10. Paging services 
11. Trunked radio services 
12. Video transport services    
  
 
 Telecommunication 
services of which enhanced 
value-added services must be provided from channels 
or lines obtained only from 
licensed network operators 
  
   
 Data and transmission 
services 
 covering electronic mail, 
voice mail, on-line 
information and database retrieval, enhanced 
facsimile, code and 
protocol conversion 
 (CPC 7523) 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled 
corporations; or 
 Only through acquisition of shares of an 
existing licensed VAS operator/Corporation; 
 
 Aggregate foreign shareholding shall not 
exceed 30 per cent; 
 The licence shall specify the type of services 
to be provided; and 
 Simple resale is not permitted. 1), 2) None 
3) None  
 
   
 
 4) Unbound except as indicated in the horizontal 
section 4) Unbound except for the categories of natural 
persons referred to under market access 
  
 Mobile data services 
 (CPC 7523*) 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian individuals or Malaysian-controlled 
corporations; or 
 Only through acquisition of shares of an 
existing licensed VAS operator/corporation; 
and 
 Aggregate foreign shareholding shall not 
exceed 30 per cent 1), 2) None 
3) None   
 S/DCS/W/MYS 
Page 20 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 
 4) Unbound except as indicated in the horizontal 
section 4) Unbound except for the categories of natural 
persons referred to under market access  
 
 Telex and telegraph 
services (CPC 7523*) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian individuals or Malaysian-controlled 
corporations;  or 
 Only through acquisition of shares of an 
existing licensed telex and telegraph 
operator/corporation; and 
 Aggregate foreign shareholding shall not 
exceed 30 per cent 
4) Unbound except as indicated in the horizontal 
section 
 1), 2) None 
3) None 
  
 
  
 
  
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
D. Audiovisual Services  
    
 Motion picture, video tape 
and audio recording 
distribution services 
 (CPC 96113) 
 1) Commercial presence is required 
2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled corporations or both and the aggregate foreign 
shareholding shall no t exceed 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 
 1) Unbound 
2) None 
3) None 
 
  
 
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Broadcasting services 
 
 covering transmission from 
foreign broadcast station of foreign broadcast matter 
from foreign territory 
through television or radio 
 (CPC 7524*) 1) 20 per cent of total screening time; and 
 Dubbing into the national language may be 
required 
2) None 3) Unbound due to lack of technical feasibility 
4) Unbound due to lack of technical feasibility 
 1) Unbound for government channel 
 
 
2) None 3) Unbound due to lack of technical feasibility 
4) Unbound due to lack of technical feasibility 
  
  
  S/DCS/W/MYS
 Page 21Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
3. CONSTRUCTION AND 
RELATED ENGINEERING 
SERVICES 
    
 Construction work 
 (CPC 511, 512, 513, 514, 
515, 516, 517) 1) Unbound due to lack of technical feasibility 
2) None 
3) Only through a representative office, regional 
office, or locally incorporated joint-venture corporation with Malaysian individuals or 
Malaysian-controlled corporations or both and 
aggregate foreign share holding in the joint-
venture corporation shall not exceed 30 per 
cent 1) Unbound due to lack of technical feasibility 
2) None 
3) None 
   
 4) Unbound except as indicated in the horizontal 
section 
 4) Unbound except for the categories of natural 
persons referred to under market access 
  
7. FINANCIAL SERVICES , INCLUDING INSURANCE 
 
 Horizontal Commitments  Applicable to the Financial Services Sector  
 
1. The offers in the financial services s ector are in accordance with the General Agr eement on Trade in Services and the Annex on Financial Services. 
2. The limitations listed under the all-sector horizontal sectio n shall not apply to financial services, unless otherwise indic ated. 
3. In respect of offshore banks, offshore investment banks, co mmercial banks, merchant banks, offshore insurance and offshore r einsurance companies, offshore 
insurance brokers, offshore insurance unde rwriting managers, offshore insurance manage rs, insurance companies, and representati ve offices of commercial banks and 
merchant banks, the following conditions an d limitations on market access, national treat ment and movement of natural persons s hall apply in addition to specific 
limitations to activity of each financial service as specified for each activity in this Schedule. 
  
 S/DCS/W/MYS 
Page 22 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
ALL FINANCIAL SERVICES 
 3) Limitations on investments as contained in the 
all-sector horizontal section. 
 
 
  
 
  
 
4) Limitations in the all-sector horizontal section 
will apply when indicated in each activity. 
 3) Limitations on land and other immovable 
property as contained in the all-sector horizontal section. 
 
 Unbound for measures affecting financial 
services accorded, to any Bumiputera or to 
assist development of any Bumiputera financial 
institution to achieve objectives of the National Development Policy (NDP). 
 
4) Limitations in the all-sector horizontal section 
will apply when indicated in each activity.  
 
1. Offshore banks, offshore 
investment banks, offshore direct insurance companies, 
offshore reinsurance 
companies, offshore insurance brokers, offshore 
insurance underwriting 
managers and offshore 
insurance managers. 1), 2) Unbound
∗ except as otherwise specified I
 n this schedule. 
3) Entry is confined to Labuan.  Entry is limited to establishment of a branch 
registered or a subsid iary incorporated in 
Malaysia. 
4) Unbound, except for temporary presence of 
natural persons in respect of supply through 
the mode of commercial presence. 
 1), 2) Unbound*, except as otherwise specified in 
 this schedule. 
3) None 
 
  
4) Unbound, except for temporary presence of 
natural persons in respect of supply through the 
mode of commercial presence. 
  
2. Commercial banks and 
merchant banks. 1), 2) Unbound* except as otherwise specified 
 in this schedule. 
3) The 13 wholly-forei gn owned commercial 
banks are permitted to remain wholly-owned 
by their existing shareholders. 
 
 Unbound for new licences. 1), 2) Unbound* except as otherwise specified in 
 this schedule. 
 
3) None except as indicat ed in the finance sector 
horizontal section and in the respective activity listed below.  
                                                           
∗ Due to lack of technical feasibility.  
  S/DCS/W/MYS
 Page 23Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(All financial services –  
commercial banks and merchant banks – cont`d)  Entry is limited to equity participation by 
foreign banks in Malaysian-owned or controlled commercial banks and merchant 
banks and aggregate foreign shareholding in a 
commercial bank or a merchant bank shall not exceed 30 per cent.  Shareholding by a single 
person individually or jointly with related 
persons is limited to a maximum of 20 per cent. 
  
 
  Acquisition by a foreign bank of an aggregate 
of 5 per cent or more of shareholding in a Malaysian-owned or controlled commercial 
bank or merchant bank must meet the 
following criteria: 
  
 
 (a) The foreign bank has the ability to facilitate 
trade and contribute to financial and economic development of Malaysia; 
(b) The country of the foreign bank has 
significant trade and investment interests in 
Malaysia; and  
 
 (c) The country of the foreign bank does not have 
a significant representation in the Malaysian 
banking industry. 
   
  A commercial bank is not allowed to acquire 
any share in another commercial bank but may 
acquire shares in one merchant bank.  
 
 A merchant bank is not allowed to acquire any 
share in a commercial bank or another merchant bank.  
  
 S/DCS/W/MYS 
Page 24 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
All financial services –  
commercial banks and merchant banks – cont`d)  Other persons are not permitted to acquire 5 
per cent or more of shareholding in a commercial bank or merchant bank if the 
person already holds 5 per cent or more of 
shareholding in another licensed financial institution. 
  
 
(  Introduction of new service products will be 
permitted subject to approval which will be based on prudential criteria. 
 
 Entry is also permitted through the setting up 
of representative offices.  Representative 
offices can only undertake research, exchange 
of information and liaison services. 
  
 
 4) Unbound except the following: 
  (a)  Unless otherwise specified, temporary 
 presence of natural persons is offered only 
 in respect of supply through the mode of 
 commercial presence. 
 (b) For banks, two senior managers for each 
 institution with an aggregate foreign 
 shareholding exceeding 50 per cent.  A 
 senior manager is an individual  possessing proprietary knowledge and 
 authority essential to the establishment, 
 control and operation of the services of  the financial service supplier. 4) Unbound except for the categories of natural 
persons referred to under market access. 
 
 
  (c) Five specialists or experts for each 
 institution for areas relating to: 
  (i) trade financing; 
  (ii) corporate finance; 
  (iii) treasury management; and   (iv) information technology.  
  
  S/DCS/W/MYS
 Page 25Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
  (d) For a representative office, two foreign 
 nationals. Only one foreign national for  the two top posts. 
 (e) Entry shall be limited to a  maximum 
 period of five years. 
  
 
3. Direct insurance 
companies. 1), 2) Unbound∗ except as otherwise specified 
 in this schedule. 
3) Branches of foreign insurance companies are 
required to be locally incorporated by 30 June 
1998 and foreign shareholding not exceeding 
51% is permitted. 
 1), 2) Unbound* except as otherwise specified in 
 this schedule.  
3) None except as indicat ed in the finance sector 
horizontal section and in the respective activity 
listed below.  
  Foreign shareholding not exceeding 51% is 
also permitted for the existing foreign 
shareholders of locally incorporated insurance companies which were the original owners of 
these companies. Provid ed aggregate foreign 
shareholding in such companies does not exceed 51%. 
  
 
  New entry is limited to equity participation by 
foreign insurance companies in locally 
incorporated insurance companies and 
aggregate foreign shareholding in such company shall not exceed 30%. 
 
 Unbound for new licences.   
 
  Acquisition by a foreign insurance company 
of an aggregate of more than 5 per cent 
shareholding in a locally incorporated 
insurance company must meet at least one of the following criteria:  
 
                                                           
∗ Due to lack of technical feasibility  
 S/DCS/W/MYS 
Page 26 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(All financial services - Direct  
insurance companies – cont`d)  (a) The foreign insurance company has the 
 ability to facilitate trade and contribute to  financial and economic development of 
 Malaysia;  
 
  (b) The country of the foreign insurance 
 company has significant trade and  investment interests in Malaysia; 
 (c) The country of the foreign insurance 
 company does not have a significant  representation in the Malaysian insurance 
 industry;  or  
 (d) The foreign insurance company has the 
 ability to provide technical expertise and 
 know-how to contribute to the financial 
 and economic development of Malaysia. 
  
 
  An insurance company is not allowed to 
acquire more than 5% share: 
 
 (a) In another insurance company in 
 Malaysia that carries on the same class of 
 insurance business as that carried on by it;   
 or  
 (b) In an insurance broking company. 
   
  Other persons holding more than 5 per cent 
shareholding in an insurance company are not 
permitted to acquire more than 5 per cent 
shareholding in: 
 
 (a) Another insurance company carrying on 
 the same class of insurance business as  that carried on by the insurance company 
 in which the person is a shareholder;  or 
 (b) An insurance broking company.  
  
  S/DCS/W/MYS
 Page 27Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(All financial services - Direct  
insurance companies – cont`d) 4) Unbound except the following: 
  (a) Unless otherwise specified, temporary 
 presence of natural persons is offered only 
 in respect of supply through the mode of  commercial presence. 
 
 (b) One senior manager for branches of 
 foreign insurance companies and locally 
 incorporated insurance companies with an 
 aggregate foreign shar eholding of 50% or 
 more. 
 4) Unbound except for the categories of natural 
persons referred to under market access. 
 
   A senior manager is an individual 
 possessing proprietary knowledge and  authority essential to the establishment, 
 control and operation of the services of 
 the financial service supplier. 
 
 (c) Three specialists or experts for each 
 institution for areas relating to: 
  
 
 
   (i) underwriting of specialized 
  classes of general business; 
  (ii) information technology; and 
  (iii) actuarial functions.  
 (d) Entry shall be limited to a maximum 
 period of five years.  
 
 
  
 
  
  
 S/DCS/W/MYS 
Page 28 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
A. BANKING AND OTHER 
FINANCIAL SERVICES, EXCLUDING 
INSURANCE 
    
 Acceptance of deposits, and 
other repayable funds from 
the public, wholesale and 
retail. 
 1) Soliciting, advertising and acceptance of 
deposits in Malaysia are not allowed. 
2) Soliciting and advertising in Malaysia for 
acceptance of deposits are not allowed. 
3) Only permitted through a commercial bank, a 
merchant bank or an offshore bank. 
 1) None 
 
2) None 
 3) For commercial banks, unbound for branching 
(including off-premises ATMs) and networking 
with ATMs in Malaysia.  
  Offshore banks in Labuan are permitted to 
accept foreign currency deposits only. 
Offshore investment banks in Labuan are not permitted to accept deposits. 
 
 Merchant banks are only permitted to accept 
term deposits from non-individuals.  The 
minimum amount of each term deposit shall 
be as specified by the Central Bank from time 
to time. 
  
 Branching is permitted for merchant banks with 
an aggregate foreign shareholding not exceeding 30 per cent. 
 
  
 
  Foreign-owned commercial banks are 
permitted to accept foreign currency deposits 
from residents subject to conditions imposed on designated banks. 
 
4) Unbound except as indicated in the finance 
sector horizontal section.  
 
  
 
4) Unbound except as indicated in the finance 
sector horizontal section.   
  S/DCS/W/MYS
 Page 29Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Lending of all types, 
including consumer credit, mortgage credit, factoring 
and financing of 
commercial transactions. 1), 2) Financial services associated with lending 
 to residents in any currency in excess of  an equivalent of RM25 million must be 
 undertaken jointly with commercial banks 
 or merchant banks in Malaysia. 1), 2) None 
   
 3) Entry as a non-bank for scheduled businesses 
is limited to: 
 
 (a) Foreign financial institutions through the 
 establishment of a locally incorporated 
 joint-venture company and aggregate 
 foreign shareholding in such company  shall not exceed 30  per cent;  or 
 (b) A representative office. 
 3) Foreign-controlled banking institutions in 
Malaysia are allowed to extend credit facilities 
(including factoring and leasing) up to a 
maximum of 40 per cent of the total credit facilities obtained by non-resident controlled 
companies from banking institutions.  The 
above limitation will be relaxed to 50 per cent in the year 2000. 
  
  Provision of factoring services by a 
commercial bank requires the setting up of a 
separate entity and shareholding by a foreign-controlled commercial bank shall not exceed 
30 per cent. 
  For commercial banks, unbound for branching 
(including off-premises ATMs) and networking 
with ATMs in Malaysia.  
  Merchant banks are not permitted to provide 
consumer credit and home mortgages. 
 
 Only commercial banks are permitted to 
provide overdraft facilities. 
  Branching is permitted for merchant banks with 
an aggregate foreign shareholding not exceeding 30 per cent.  
  Offshore banks and offshore investment banks 
are permitted to lend in foreign currencies only. 
 
 Representative offices can only undertake 
research and liaison services. 
    
 S/DCS/W/MYS 
Page 30 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Lending of all types – cont`d) 4) For banks, unbound except as indicated in the 
finance sector horizontal section. 
 
 For non-banks, unbound except one foreign 
national for a management post which is not the CEO post, for each establishment. 
 4) For banks, unbound except as indicated in the 
finance sector horizontal section. 
 
 For non-banks, unbound except for the 
categories of natural persons referred  to under market access.  
  For representative offices of scheduled 
businesses, two foreign nationals subject to only one foreign national for the two top 
posts. 
  Entry shall be limited to a maximum period of 
five years. 
  Residency requirements are required for 
lending of money. 
  
 Financial leasing. 1), 2) Leasing services to residents in any  
currency must be unde rtaken jointly with 
leasing companies or merchant banks in Malaysia. 
3) Entry as a non-bank is limited to: 
 (a)  Foreign financial institutions through the 
 establishment of a locally incorporated 
 joint-venture company and aggregate  foreign shareholding in such company 
 shall not exceed 30 per cent; or 1), 2) None 
 
  
3) None  
  (b) A representative office. 
 
 Provision of leasing services by a commercial 
bank requires the setting up of a separate entity and shareholding by a foreign-
controlled commercial bank shall not exceed 
30 per cent. 
 
 Aggregate foreign shareholding will be 
permitted to be increased to 49 per cent with effect from 1 July 2000. 
   
  Representative offices can only undertake 
research and liaison services.    
  S/DCS/W/MYS
 Page 31Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
  Entry is permitted through the establishment 
of a branch or subsidiary in Labuan by reputable foreign leasing companies. Such 
offshore entity can only transact in foreign 
currencies. 
   
  Offshore banks and offshore investment banks 
are permitted to carry on financial leasing 
business in foreign currencies only. 
   
 4)  Unbound except two foreign nationals, one for 
management post which is not the CEO post and one technical post, for each establishment. 
 
 For representative offices, two foreign 
nationals subject to one foreign national for 
the two top posts. 
 4) Unbound except for the categories of natural 
persons referred to under market access. 
 
 For offshore leasing companies, unbound 
except for temporary pr esence of natural 
persons in respect of supply through the mode 
of commercial presence.  
 
  Entry shall be limited to a maximum period of 
five years. 
 
 For offshore leasing companies, unbound 
except for temporary pr esence of natural 
persons in respect of supply through the mode 
of commercial presence. 
    
 
 All payment and money 
transmission services, namely credit and debit 
cards, travellers cheques 
and bankers drafts. 
 1), 2) Electronic fund transfer system requires 
 approval. 
3) Offshore banks are permitted to extend 
payment and money transmission services to 
non-residents only. 
 
 Only commercial banks are permitted to issue 
credit cards, debit cards  or provide checking 
account services. 1), 2) None 
 3) For commercial banks, unbound for branching 
(including off-premises ATMs) and networking 
with ATMs in Malaysia. 
 
 Branching is permitted for merchant banks with 
an aggregate foreign shareholding not exceeding 30 per cent.   
 S/DCS/W/MYS 
Page 32 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
  Only Malaysian-controlled banks are 
permitted to issue, sell or purchase ringgit travellers cheques. 
 
 Sale or purchase of foreign currency travellers 
cheques other than by commercial banks 
requires a money change r's licence.  Entry is 
limited to establishment of a locally incorporated joint-venture company and 
aggregate foreign shareholding in such 
company shall not exceed 30 per cent. 
  Sale or purchase of travellers cheques by 
individuals require citizenship status.  
 
 Branching (including dispensers) is permitted 
for travellers cheques companies with foreign shareholding not exceeding 30 per cent.  
 4) For banks, unbound except as indicated in the 
finance sector horizontal section. 
  For non-banks, unbound except one foreign 
national for a management post which is not 
the CEO post, for each establishment. 
 
 Entry shall be limited to a maximum period of 
five years. 
 4) For banks, unbound except as indicated in the 
finance sector horizontal section. 
  For non-banks, unbound except for the 
categories of natural persons referred to under 
market access. 
 
  
 
 Charge cards. 
 1), 2) None 
3) Entry is limited to establishment of a company 
incorporated in Malaysia.  Approval of the 
Central Bank is required.  Approval will be granted based on prudential criteria. 
4) Unbound except two senior managers for each 
establishment. 
 
 Entry shall be limited to a maximum period of 
five years. 1), 2) None 
3) None 
 
  
4) Unbound except for the categories of natural 
persons referred to under market access. 
  
  
  S/DCS/W/MYS
 Page 33Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Guarantees and 
commitments. 
 1), 2) None except banks established in 
 Malaysia may be given the right of first  refusal. 
 
  Guarantees and commitments undertaken 
 by non-residents are governed by rules 
 relating to exchange control. 
 3) None 
4) Unbound except as indicated in the finance 
sector and all-sector horizontal section. 
 1), 2) None 
  
 
  
 
 3) None 
4) Unbound except as indicated in the finance 
sector and all-sector horizontal section. 
  
 
 Money and foreign 
exchange broking services. 
 1), 2) Broking services, involving Ringgit 
 Malaysia and financial instruments issued 
 in Malaysia must be effected through  authorized dealers and money and foreign 
 exchange brokers incorporated in 
 Malaysia. 
3) Entry is limited to: 
 (a) equity participation in existing institutions 
 and aggregate foreign shareholding in 
 such institutions shall not exceed 30 per 
 cent;  or 1), 2) None 
 
  
 
  
3) None 
  
  (b)  the establishment of a branch or 
 subsidiary, by a money and foreign 
 exchange broker, registered or  incorporated in Labuan. 
   
  Money and foreign exchange broking services 
by offshore entities are confined to foreign 
currencies only. 
 4) Unbound 
 
 For offshore money and foreign exchange 
brokers, unbound except for temporary 
presence of natural persons in respect of 
supply through the mode of commercial presence.  
 
 
 4) Unbound 
 
 For offshore money and foreign exchange 
brokers, unbound except for temporary 
presence of natural persons in respect of supply 
through the mode of commercial presence. 
   
 S/DCS/W/MYS 
Page 34 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
Trading for own account or  
account of customers in the following: 
 
- money market instruments - foreign exchange 
- transferable securities 
- exchange rate and interest 
rate instruments 
- derivative products, 
including futures and options 
- other negotiable 
instruments, including bullion 1) Dealing is limited to contracts traded on 
specified exchanges abroad. 
2) None 
3) Transactions by offshore banks and  offshore 
investment banks in Labuan must be conducted in foreign currencies, except for the 
sale or purchase of curr encies with authorized 
banks in Malaysia. 
 
 Transactions by offshore banks and offshore 
investment banks in Labuan for own account are limited to instruments created and issued 
by offshore companies in Labuan and foreign 
companies abroad. 
 1) None 
 2) None 
3) None  
  Trading for accounts of  customers by offshore 
banks, offshore investment banks and offshore 
companies in Labuan is confined to non-
resident customers and in instruments created 
and issued by offshore companies in Labuan 
and foreign companies abroad. 
   
  Trading in shares of Malaysian companies by 
offshore banks, offshore investment banks  
and offshore companies in Labuan is confined 
to non-resident customers who are not offshore companies registered or incorporated 
in Labuan. 
   
  Only commercial banks, offshore banks and 
offshore investment banks are permitted to 
trade in foreign currency.    
  S/DCS/W/MYS
 Page 35Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Trading for own account or  
account of customers – cont`d)  Trading and dealing in securities and financial 
futures and derivative products other than by designated financial institutions require 
establishment of a locally incorporated joint-
venture company and aggregate foreign shareholding in such company shall not 
exceed 30 per cent. 
   
  Trades for own account and account of  
customers who are outside Malaysia may  be 
routed to member companies of the stock 
exchange for execution by a foreign stock broking company that is incorporated in 
Malaysia subject to all terms and conditions 
which are being finalized. 
   
 4) For banks, unbound except as indicated in the 
finance sector horizontal section. 
 4) For banks, unbound except as indicated in the 
finance sector horizontal section. 
  
  For non-banks, unbound except as indicated in 
the all-sector horizontal section.  For non-banks, unbound except as indicated in 
the all-sector horizontal section.  
  
 S/DCS/W/MYS 
Page 36 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Services related to the 
issues of all kinds of securities and placement as 
agents (whether publicly or 
privately) (excluding issuing and rating houses). 
 1), 2) Participation in issues and services related 
 to such issues requires authorization. 
3) Participation by offshore banks and offshore 
investment banks in Labuan is limited to non-
resident customers and for issues of securities outside Malaysia. 1), 2) None 
 3) None 
  
  Only merchant banks are permitted to make 
submissions to the Securities Commission for new issues. 
   
  Participation by non-banks requires 
establishment of a locally incorporated joint-
venture company and aggregate foreign 
shareholding in such company shall not exceed 30 per cent. 
   
  Unbound for appointmen t as principal dealers. 
   
 4) For banks, unbound except as indicated in the 
finance sector horizontal section. 
 
 For non-banks, unbound except as indicated in 
the all-sector horizontal section. 4) For banks, unbound except as indicated in the 
finance sector horizontal section. 
 
 For non-banks, unbound except as indicated in 
the all-sector horizontal section.   
  S/DCS/W/MYS
 Page 37Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Underwriting 1) Commercial presence is required. 
2) Authorization is required. 3) For non-banks, only  licensed dealers are 
permitted to underwrite.  Entry is limited to 
establishment of a locally incorporated joint-venture company and aggregate foreign 
shareholding in such company shall not 
exceed 30 per cent. 
 
 Commercial banks are permitted to underwrite 
private debt securities only. 
 1) Unbound 
2) None 3) None 
 
   
  Offshore banks and offshore investment banks 
are permitted to underwrite foreign currency 
denominated securities created and issued by offshore companies in Labuan and foreign 
companies abroad. 
   
 
 4) For commercial banks, merchant banks, 
offshore banks and offshore investment banks, 
unbound except as indicated in the finance 
sector horizontal section. 
 For non-banks, unbound except as indicated in 
the all-sector horizontal section. 
 4) For commercial banks, merchant banks, 
offshore banks and offshore investment banks, 
unbound except as indicated in the finance 
sector horizontal section. 
 For non-banks, unbound except as indicated in 
the all-sector horizontal section. 
  
 
Asset management as follows: 
 
- cash or portfolio 
management 
- all forms of collective 
investment management 
- custodial and depository 
services 1) Commercial presence is required. 
2) None 
3) Custodial and depository services are limited 
to scrip based securities. 
 
 Asset management by offshore banks, 
offshore investment banks and offshore companies is confined to non-resident 
customers and foreign currency assets. 1) None 
2) None 
3) None   
 S/DCS/W/MYS 
Page 38 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Asset management – cont`d)  Asset management by offshore banks, 
offshore investment banks and offshore companies in Malaysian equities or equity- 
linked investments are confined to non-
resident customers other than offshore companies incorporated in Labuan in which 
residents have shareholding. 
   
  Entry as a non-bank, other than as a Foreign 
Fund Management Company (FFMC), is 
limited to establishment of a locally 
incorporated joint-venture company and aggregate foreign shareholding in such 
company shall not exceed 30 per cent. 
   
  Provision of asset management services by a 
commercial bank requires establishment of a 
separate entity and shareholding by a foreign-controlled commercial bank shall not exceed 
30%. 
   
  Entry as an FFMC is limited to the 
establishment of a co mpany incorporated 
locally with more than 50% foreign 
shareholding in the co mpany and requires the 
approval of the Securities Commission. Sourcing of local fund s worth at least RM10 
million is limited to FFMCs where the 
aggregate foreign shareholding is not more than 70% and the company is managing or has 
undertaken to manage funds sourced from 
outside Malaysia to the amount of at least USD100 million.    
  S/DCS/W/MYS
 Page 39Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Asset management – cont`d) 
  Sourcing of local funds is limited to 
institutional funds and collective investment schemes other than unit trusts. Only ten 
FFMCs which have a maximum of 70% 
foreign shareholding may manage the funds of a local unit trust subject to the approval of the 
Securities Commission.  
  
  
 
  
 
 4) For commercial banks and merchant banks, 
unbound except as indicated in the finance 
sector horizontal section. 
  For non-banks, unbound except as indicated in 
the all-sector horizontal section. 
 4) For banks, unbound except as indicated in the 
finance sector horizontal section. 
 
 For non-banks, unbound except as indicated in 
the all-sector horizontal section.  
Advisory, intermediation and  
other auxiliary financial 
services, including credit reference and analysis, 
investment advice on 
acquisitions, corporate 
restructuring and strategy. 1) Provision of investment and portfolio advice 
requires commercial presence. 
  Services other than investment and portfolio 
advice to residents must be undertaken jointly 
with commercial banks or merchant banks in 
Malaysia. 1) None 
 
  
  
 2) Services other than investment and portfolio 
advice to residents must be undertaken jointly 
with commercial banks or merchant banks in 
Malaysia. 2) None  
 3) Entry as a non-bank is limited to: 
 (a) Establishment of a locally incorporated 
 joint-venture company and aggregate  foreign shareholding in such company 
 shall not exceed 30 per cent;  or 
 (b) A representative office. 3) None   
 S/DCS/W/MYS 
Page 40 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Advisory, intermediation and  
other auxiliary financial services – cont`d)  Representative offices (including those of 
commercial banks, merchant banks and securities companies) are permitted to 
undertake research, in formation and liaison 
services only. 
 
 Representative offices of securities companies 
are not permitted to publish and circulate research work in Malaysia. 
   
  Offshore banks, offshore investment banks 
and offshore companies in Labuan can only provide services to non-resident customers. 
 
4) For banks, unbound except as indicated in the 
finance sector horizontal section. 
  
  
 
4) For banks, unbound except as indicated in the 
finance sector horizontal section.  
  For non-banks, unbound except as indicated in 
the all-sector horizontal section. 
 
 For representative offices, two foreign 
nationals subject to only one foreign national 
for the two top posts.  Entry shall be limited to a maximum period of five years.  For non-banks, unbound except as indicated in 
the all-sector horizontal section.   
  S/DCS/W/MYS
 Page 41Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
Operational headquarters  
(OHQ) for financial sector (Provides services to 
commercial and investment 
banking institutions in activities relating to work carried out in 
Malaysia for its offices and 
related companies outside Malaysia, pertaining to general 
management and administration, 1), 2) Unbound
∗ 
3) Only through a locally incorporated wholly 
foreign-owned company. 
  A foreign-owned company, a regional office 
of a foreign-owned company which transfers 
its OHQ services to Malaysia, a regional office of a foreign-owned company 
established in Malaysia, and a foreign- owned 
company which is already incorporated in Malaysia, may seek to qualify as an OHQ. 1), 2) Unbound* 
3) None  
business planning, technical  
support, marketing control and sales promotion planning, 
training and personnel 
management, provision of treasury and fund management 
services and research and 
development).   
 An OHQ must operate in Malaysia and fulfill 
the following criteria: 
 (a) Carry out at least three of the OHQ 
 service activities; 
 (b) Have a sizeable network of companies 
 outside Malaysia which includes the 
 parent company or its head office and  related companies;   
  (c) Have a well established foreign-owned 
 company which is sizeable in terms of  assets and employees;   
  (d) Have a network of companies with a 
 substantial number of qualified  executives, professionals, technical and 
 other supporting personnel;   
 
  (e) Be able to make decisions independently 
 without consultation with its head office 
 or parent company located outside 
 Malaysia;  
 
 
  
 
                                                           
∗ Due to lack of technical feasibility.  
 S/DCS/W/MYS 
Page 42 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Operational headquarters –  
cont`d)  (f) Be able to contribute to the Malaysian 
 economy by: 
  (i) Using services such as legal, 
  accounting etc. provided by 
  Malaysians; 
  (ii) Creating job opportunities for 
  Malaysians; 
  (iii) Enabling greater inflow of 
  foreign funds.   
 4) Unbound except as i ndicated in the all-sector 
horizontal section. 
 4) None  
 Securities broking services 
comprising: 
- broking services; - credit reference and 
analysis; 1) Trades on Malaysian stock exchanges must be 
transacted through comp anies incorporated in 
Malaysia which are member companies of the exchange. 1) None  
- investment portfolio 
management and advice; 
and 
- market research.  Promotion in Malaysia of Malaysian stocks 
requires approval.   
  Provision of investment advisory services and 
credit reference services to residents requires commercial presence. 
   
 2) Trades on Malaysian stock exchanges must be 
transacted through comp anies incorporated in 
Malaysia which are member companies of the 
exchange. 2) None 
 
 
  
 3) Entry is limited to recognized foreign stock 
broking companies through: 
 (a) Equity participation in an existing 
 stockbroking company;  or 3) None  
  (b) Establishment of a locally incorporated 
 joint-venture company with a Malaysian  stockbroking company.    
  S/DCS/W/MYS
 Page 43Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Securities broking services –  
cont`d)  And aggregate foreign shareholding in such 
company shall not exceed 30 per cent.  The aggregate foreign shareholding will be 
permitted to be increased to 49 per cent with 
effect from 1 July 2000, subject to conditions. 
   
  A foreign stockbroking company is permitted 
to have shareholding in one stockbroking 
company only. 
 
 Entry by recognized foreign stockbroking 
companies is also permitted through a representative office. 
   
  Representative offices are permitted to 
undertake research, in formation and liaison 
services only.  Representative offices are not 
permitted to publish and circulate research work in Malaysia. 
   
 
  New licences subject to conditions, including 
geographical location, numerical quota and 
other conditions to be determined. 
   
 4) Unbound for a stockbroking company, except 
as indicated in the all-sector horizontal section. 
 
 For representative offices, two foreign 
nationals subject to only one foreign national 
for the two top posts.  Entry shall be limited to 
a maximum period of five years. 4) Unbound except for the categories of natural 
persons referred to under market access.   
 S/DCS/W/MYS 
Page 44 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
Commodity futures broking  
services. 1), 2) Trades on any Malaysian commodity 
futures exchange must be conducted through companies incorporated in Malaysia which are 
member companies of the exchange. 
3) Entry is limited to: 1), 2) None 
  
 
3) None  
  (a) Establishment of a locally incorporated 
 joint-venture company and aggregate 
 foreign shareholding in such company is 
 limited to 30 per cent or any higher  percentage as determined by the relevant 
 authorities;  or 
 (b) A representative office.   
 
  Representative offices are permitted to 
undertake research, in formation and liaison 
services only. 
 
 Total membership of the exchange will be 
based on economic needs. 
  
 
  
 
 4) Unbound except one foreign national for a 
management post per establishment, subject to 
market test. 4) Unbound except for the categories of natural 
persons referred to under market access. 
  
B. INSURANCE SERVICES 
   
  
 
 Direct insurance (non-life).  1) Soliciting and advertising in Malaysia are not 
allowed. 
 
 Direct placement abroad of insurance of: 
 (a) movable or immovable property located 
 in Malaysia, including any ship or aircraft 
 registered in Malaysia;  and 1) None 
  
 
  
  (b) liability of residents to third party requires 
 approval. Approval will be granted if such 
 insurance is not available from direct 
 insurance companies in Malaysia.    
  S/DCS/W/MYS
 Page 45Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Direct insurance (non-life) –  
cont`d) 2) Direct placement abroad of insurance of: 
 (a) movable or immovable property located 
 in Malaysia, including any ship or aircraft 
 registered in Malaysia; and 2) None  
  (b) liability of residents to third party requires 
 approval. Approval will be granted if such  insurance is not available from direct 
 insurance companies in Malaysia. 
   
 3) Only permitted through direct insurance 
companies. 
  Offshore direct insurance companies in 
Labuan are not permitted to accept direct 
insurance of Malaysian risks. 3) Branching is permitted for direct insurance 
companies with aggregate foreign shareholding 
of less than 50 per cent. Direct insurance companies are permitted to maintain their 
existing network of branches.  
   Unbound for special assistance to Malaysian-
owned direct insurance companies to promote 
their development.  
 
 4) Unbound except as indicated in the finance 
sector horizontal section. 
 4) Unbound except as indicated in the finance 
sector horizontal section. 
  
 Direct insurance (life). 
  1), 2) Unbound 
3) Only permitted through direct insurance 
companies. 
 Investment-linked insurance business and new 
life insurance products provided by direct insurance companies require approval, which 
will be based on prudential criteria.  
 1), 2) Unbound 
3) Branching is only permitted for direct insurance 
companies with aggregate foreign shareholding 
of less than 50 per cent.  Direct insurance 
companies are permitted to maintain their existing network of branches.  
  
 
  Offshore direct insurance companies in 
Labuan are not permitted to underwrite life 
insurance of residents. This limitation does not apply to ordinary life insurance of high net 
worth residents.  Unbound for special assistance to Malaysian-
owned direct insurance companies to promote 
their development.  
 4) Unbound except as indicated in the finance 
sector horizontal section. 4) Unbound except as indicated in the finance 
sector horizontal section.   
 S/DCS/W/MYS 
Page 46 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Reinsurance and 
retrocession (non-life). 1), 2) Outward reinsurance is permitted only if 
 local capacity is not available. 
 1), 2) Voluntary cession up to 30 per cent of each 
 class of non-life reinsurance business to the  Malaysian National Reinsurance Berhad. 
 
  Unbound for fiscal incentives to promote 
 reinsurance in Malaysia. 
  
 3) Obligation on all insurers other than offshore 
direct insurance and offshore reinsurance companies to optimise national retention 
capacity before any outward reinsurance. 
 3) Unbound for measures granting special position 
to Malaysian National Reinsurance Berhad. 
  
  Seven new licences for non-life reinsurance 
business within 10 years ending 30 June 2005. 
   
  Entry is through the establishment of a 
balanced distribution of branches and locally 
incorporated joint-venture companies, subject to the following conditions:   
  (a) Priority will be given to foreign reinsurers 
 from the top 100 world reinsurers which:   
  (i) Have long presence in Asia and ability to 
 procure sufficient business for their  branch/joint-venture company;  or 
 (ii) Are from countries or regions having no 
 representation in Malaysia, provided they  bring in special expertise.   
  (b) For entry through branches, priority will 
 be given to foreign reinsurers which  intend to base their regional headquarters 
 in Malaysia.   
  (c) For entry through joint-ventures, priority 
 will be given to those joint-ventures 
 which have business plans to operate 
 regionally.    
  S/DCS/W/MYS
 Page 47Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Reinsurance and retrocession  
(non-life) – cont`d)  (d) The branch or joint-venture company 
 must undertake to comply with the  national objectives of achieving optimum 
 retention of local risks, local participation 
 in the management of the branch or joint- venture company and transfer of technical 
 expertise to the local market.   
  (e) Aggregate foreign shareholding in the 
 joint-venture company shall not exceed  49 per cent. 
 (f) Priority will be give n to joint-venture with 
 a local partner which:   
   (i) has a minimum shareholders' 
  funds of at least RM3 billion; 
  (ii) is a leading institution with 
  diversified business activities 
  within its group;  or 
  (iii) has a good track record of  
  managing a substantial insurance 
  portfolio. 
   
  Aggregate foreign shareholding in the 
Malaysian National Reinsurance Berhad shall not exceed 30 per cent. 
 
 Entry as an offshore reinsurance company is 
confined to Labuan. 
   
 
 4) Unbound except for: 
 (a) Two senior managers for each institution 
 are permitted. 
  A senior manager is an individual possessing 
proprietary knowledge and authority essential 
to the establishment, control and operation of the services of the financial service supplier. 4) Unbound except as indicated in the finance 
sector horizontal section. 
 
 For offshore reinsurance companies, unbound 
except as indicated in the finance sector 
horizontal section. 
   
  
 S/DCS/W/MYS 
Page 48 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Reinsurance and retrocession  
(non-life) – cont`d)  (b) Three specialists or experts for each 
 institution are permitted. 
   
  Specialists or experts are individuals who 
possess knowledge and expertise relating to 
new products and services, technique or management of the financial service supplier. 
   
  (c) Entry shall be limited to  a maximum 
 period of five years. 
 
 For offshore reinsurance companies, unbound 
except as indicated in the finance sector 
horizontal section. 
   
 Reinsurance and 
retrocession (life). 1), 2) Outward reinsurance is permitted only if 
local capacity is not available. 
3) National retention capacity is required to be 
optimised before any outward reinsurance by: 1), 2) Unbound for fiscal incentives to promote 
reinsurance in Malaysia. 
 3) None  
  (a) direct life insurance and life reinsurance 
 companies in Malaysia;  and 
 (b) offshore direct life insurance and offshore 
 life reinsurance companies which are  permitted to insure or reinsure life 
 insurance of high net worth residents. 
   
  Six new licences for life reinsurance business 
will be issued up to 30 June 2005. 
   
  Entry is through the establishment of a 
balanced distribution of branches and locally 
incorporated joint-venture companies, subject to the following conditions:    
  S/DCS/W/MYS
 Page 49Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(Reinsurance and retrocession 
(life) – cont`d)  (a) Priority will be given to foreign reinsurers 
 from the top 100 world reinsurers which: 
  (i) have branch offices in Malaysia;   
   (ii) have long presence in Asia and 
  ability to procure sufficient 
  business for their branch or joint-  venture company;  or 
  (iii) are from countries or regions 
  having no representation in   Malaysia, provided they bring in 
  special expertise.   
  (b) For entry through branches, priority will 
 be given to foreign reinsurers which 
 intend to base their regional headquarters 
 in Malaysia.   
  (c) For entry through joint-ventures, priority 
 will be given to those joint-ventures 
 which have business plans to operate  regionally. 
 (d) The branch or joint-venture company 
 must undertake to comply with the 
 national objectives of achieving optimum 
 retention of local risks, local participation  in the management of the branch or joint-
 venture company and transfer of technical 
 expertise to the local market.   
  (e) Aggregate foreign shareholding in the 
 joint-venture company shall not exceed 
 49 per cent. 
 (f) Priority will be give n to joint-venture with 
 a local partner which: 
  (i) has a minimum shareholders' 
  funds of at least RM3 billion;  or   
   (ii) is a leading institution with 
  diversified business activities   within its group.    
 S/DCS/W/MYS 
Page 50 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
  Aggregate foreign shareholding in the 
Malaysian Life Reinsurance Group Berhad shall not exceed 30 per cent. 
   
  Entry as an offshore reinsurance company is 
confined to Labuan. 
 
4) Unbound except for: 
 (a) Two senior managers for each institution 
 are permitted. 
  A senior manager is an individual 
 possessing proprietary knowledge and  authority essential to the establishment, 
 control and operation of the services of 
 the financial service supplier.  
  
4) Unbound except as indicated in the finance 
sector horizontal section. 
 
 For offshore reinsurance companies, unbound 
except as indicated in the finance sector horizontal section.  
  (b) Three specialists or experts for each 
 institution are permitted. 
  Specialists or experts are individuals who 
 possess knowledge and expertise relating 
 to new products and services, technique 
 or management of the financial service 
 supplier.   
  (c) Movement of a senior manager, specialist 
 or expert can be through intra-corporate 
 transfers or otherwise. 
 (d) Entry shall be limited to a maximum 
 period of five years. 
   
 
  For offshore reinsurance companies, unbound 
except as indicated in the finance sector 
horizontal section.  
 
  
  
  S/DCS/W/MYS
 Page 51Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Insurance intermediation - 
insurance broking (excluding agency). 
 1), 2) Direct insuranc e broking services can 
 only be provided to offshore companies in  Labuan. 
 
  Reinsurance broking is permitted.  1), 2) None 
  
 
 3) Unbound for onshore insurance broking. 
 
 Broking of direct insurance of Malaysian risks 
by offshore insurance brokers is not permitted. 
This limitation does not apply to broking of 
reinsurance of Malaysian risks. 
 
4) Unbound except as indicated in the finance 
sector 
 3) None 
 
  
 
  
4) Unbound except as indicated in the finance 
sector horizontal section.  
 Insurance intermediation - 
insurance underwriting and insurance management. 1), 2) Insurance underwriting and insurance 
 management are not permitted. 
3) Unbound for onshore insurance underwriting 
and insurance management. 
 
 An offshore insurance underwriting manager 
is not permitted to provide services to any person other than offshore insurance 
companies in Labuan. 
 1), 2) None 
 3) None  
 
  An offshore in surance manager is permitted to 
provide insurance management services to 
persons other than residents. 
 
4) Unbound except as indicated in the finance 
sector horizontal section.  
 
  
4) Unbound except as indicated in the finance 
sector horizontal section.  
  
 S/DCS/W/MYS 
Page 52 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
Services auxiliary to insurance,  
as follows: (a) Consultancy (excludes 
insurance agency services 
to insurance industry) 
(b) Actuarial risk assessment 
(c) Risk management 
(d) Maritime loss adjusting.  1) Actuarial services can only be provided to 
offshore insurance comp anies and offshore 
reinsurance companies in Labuan. 
2) None 
3) Limited to the establishment of:  (a) Locally incorporated companies; 
 (b) Branches;  or 
 (c) Partnerships.  
 Offshore companies are not permitted to 
provide services to Malaysian residents. 
 
4) Unbound except for temporary presence of 
natural persons in respect of supply through the mode of commercial presence. 
 1) None 
  
 
2) None 3) None 
 
  
 
  
4) Unbound except for temporary presence of 
natural persons in respect of supply through the mode of commercial presence. 
  
 
8. HEALTH RELATED AND 
SOCIAL SERVICES 
    
 Hospital Services  
    
 Private hospital services 
 (CPC 93110*) 1), 2) None 
3) Economic needs test;    
 Only through a locally incorporated joint-
venture corporation with Malaysian individuals or Malaysian-controlled 
corporations or both and aggregate foreign 
shareholding in the joint-venture corporation shall not exceed 30 per cent; and 
 1), 2) None 
3) Establishment of feeder outpatient clinics is not 
permitted  
 
  The joint-venture corporation shall operate a 
hospital with a minimum of 100 beds 
 
4) Unbound except as indicated in the horizontal 
section  
 
 
4) Unbound except for the categories of natural 
persons referred to under market access  
  
  S/DCS/W/MYS
 Page 53Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
9. TOURISM AND TRAVEL 
RELATED SERVICES 
    
 Hotel, tourist resort and 
restaurant services  
 covering the management 
and operation of hotels or 
resorts, including outlets 
which may not necessarily include ownership of such 
properties  
  1. (CPC 641, 642, 643) 
 2. (CPC 87909) 1) Unbound due to lack of technical feasibility 
2) None 
3) Entry for service activities under CPC 641, 
642, 643 is permitted only through a locally 
incorporated joint-venture corporation with 
Malaysian individuals or Malaysian- controlled corporations or both and aggregate 
foreign shareholding in the joint- venture 
corporation shall not exceed 30 per cent;  or 
 Entry for service activity under CPC 87909 is 
permitted only for the purposes of services 
contract awarded in Malaysia and implemented through a branch 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 
 1) Unbound due to lack of technical feasibility 
2) None 
3) None  
 
  
 
  
 
  
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 Travel agency and tour 
operator services  
 (CPC 7471) 1) Unbound due to lack of technical feasibility 
2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian individuals or Malaysian-controlled 
corporations or both and aggregate foreign 
shareholding in the joint-venture corporation shall not exceed 30 per cent; and 
 1) Unbound due to lack of technical feasibility 
2) None 
3) None 
  
  Establishment of another office requires 
additional licence 
   
 4) Unbound except as indicated in 1 (a) in the 
horizontal section 4) Unbound except for the categories of natural 
persons referred to under market access   
 S/DCS/W/MYS 
Page 54 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
10. RECREATIONAL, 
CULTURAL AND SPORTING SERVICES 
   
  
 
 Other entertainment 
services (CPC 96191, 96192, 96194) 
 1) Unbound due to lack of technical feasibility 
2) None 3) Entertainment services may be supplied only 
by a natural person 
4) Unbound except as indicated in 2 (a) in the 
horizontal section 
 
 1) Unbound due to lack of technical feasibility 
2) None 3) None 
 
4) Unbound except for the categories of natural 
persons referred to under market access 
 
 Participation of Malaysian entertainers/artistes 
may be required based on the guidelines of the 
Ministry of Culture, Arts and Tourism 
  
 
 Sports events management 
services   
 (CPC 96411, 96412)  1) Unbound due to lack of technical feasibility 
2) None 
3) Only through a Malaysian-controlled 
corporation acting as the local sponsor 
4) Unbound except as indicated in 2 (a) in the 
horizontal section 1) Unbound due to lack of technical feasibility 
2) None 
3) None  
4) Unbound except for the categories of natural 
persons referred to under market access  
  
  S/DCS/W/MYS
 Page 55Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
11. TRANSPORT SERVICES 
    
 International Maritime 
Transport Services  
    
 - excludes cabotage 
  (CPC 7211, 7212) 1), 2) None 1), 2) None  
 - excludes government 
 cargo 
 3) Only through a representative office, regional 
office or locally-incorporated joint- venture corporation with Malaysian individuals or 
Malaysian-controlled corporations or both and 
aggregate foreign share holding in the joint-
venture corporation shall not exceed 30 per 
cent 3) None 
  
 
 The following services at  
the port are made available to international maritime 
transport suppliers on 
reasonable and non-discriminatory terms and 
conditions: 
 1) Pilotage 
2) Towing and tug  
assistance 
3) Provisioning, fuelling 
and watering 
  Malaysian registered vessels  
 
 To register a vessel in Malaysia, the following 
conditions must be met:  4) Garbage collection 
and ballast waste 
disposal 
5) Port Captain's services 
6) Navigation aids 
  (1) Owner of that vessel must be a Malaysian 
 citizen or corporation incorporated in 
 Malaysia; 
 (2) Majority shareholding to be held by 
 Malaysians; 
 (3) Majority of the board of directors to be 
 Malaysians; and 
 (4) Principal place of business to be in 
 Malaysia.  7) Shore-based 
operational services 
essential to ship 
operations, including communications, 
water and electrical 
supplies 
8) Emergency repair 
facilities 
9) Anchorage, berth and 
berthing services  
 S/DCS/W/MYS 
Page 56 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 4) Unbound except as indicated in 1 (a) and (b) 
and 2 (c) in the horizontal section. For manning vessels, ratings is permitted up to 25 
per cent. Ship crew is permitted to disembark 
only for duration of berth. 
 4) Unbound except for the categories of natural 
persons referred to under market access  
 Maritime agency services  
 
 covering marketing and 
sales of maritime transport 
and related services and 
acting on behalf of the companies organizing the 
call of the ship or taking 
over cargoes when required (CPC 7454*) 
 1), 2) None 
3) Only through a representative office, regional 
office or locally-incorporated joint- venture corporation with Malaysian individuals or 
Malaysian-controlled corporations or both and 
Bumiputera  shareholding in the joint-venture corporation of at least 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section 1), 2) None 
3) None 
  
 
  
4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Vessel salvage and 
refloating services except 
on inland waters (CPC 
74540)  1), 2) None 
3) Only through a representative office, regional 
office or locally-incorporated joint-venture 
corporation with Malaysian individuals or 
Malaysian-controlled corporations or both and 
Bumiputera shareholding in the joint-venture corporation of at least 30 per cent 1), 2) None 
3) None 
 
 
 
  
 
 4) Unbound except as indicated in 1 (a) and (b) 
and 2 (a) in the horizontal section 4) Unbound except for the categories of natural 
persons referred to under market access   
  S/DCS/W/MYS
 Page 57Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
12. OTHER SERVICES 
    
 Skills training services 
 
 covering the provision of 
training for technical, supervisory and production 
related functional levels in 
new and emerging technologies as follows: 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian 
individuals or Malaysian-controlled corporations or both and aggregate foreign 
shareholding in the joint-venture corporation 
shall not exceed 30 per cent; and 
 1), 2) None 
3) None 
 
  
 
   
 
  1) automated 
 manufacturing 
 technology; 
 2) advanced materials 
 technology;  Establishment of local branches requires 
additional licenses 
 
4) Unbound except as indicated in the horizontal 
section  
  
4) Unbound except for the categories of natural 
persons referred to under market access  
 3) biotechnology; 
 4) electronics;  5) information 
 technology; and 
 6) avionics/aviation 
 technology 
  (CPC 97090)  
   
 S/DCS/W/MYS 
Page 58 
 
 
 ANNEX I 
 
Annex to Additional Commitments on Telecommunication Services 
 
Principles Procedural Requirements 
1. Competition safeguards The regulatory body must take measures to: 
 
- Maintain fair competition among network operators; 
- Safeguards the interest of consumers;  
2. Universal Service - Ensure that network operators contribute to Universal Service 
Obligation particularly the extension of services into rural and 
other undeserved areas as stipulated in the licences; 
 
3. Public availability of licensing criteria -  To advise other network operators  on the licensed status of each 
network operator including terms and conditions pertaining to 
the operator's licence which govern  the right of the licensee to 
interconnect with operators; 
 
4. Independent regulator  To exercise its functions with respect to the conduct of 
telecommunications operators and the running of telecommunications services in Malaysia as provided for under 
Section 3B of the Telecommunications Act; 
 
5. Interconnection arrangements To ensure that the following principles pertaining to interconnection  
arrangements are adhered to: 
 
 - Interconnection and access between network operators shall be 
on an equitable and non-discriminatory basis; 
 
 - Charges for interconnection facilities and services provided by 
network operators shall be fair and equitable; 
 
 - The technical qualities of interconnect facilities and services 
provided by network operators shall be of no less quality than 
that provided by them within their own networks; 
 
 - A domestic network operator in any of the market segments 
shall not abuse its market powe r to limit access to essential 
facilities only for interconnection; 
 
 - The network operator that pr ovides the access connection to the 
customer should be allowed to tell him (the customer); 
 
 - No cross-subsidies should be allowed between carriers whereby 
one carrier has to bear an ineq uitable share of the Universal 
Service Obligation burden where the said share is not proportional  to its market share. 
_______________  
  S/DCS/W/MYS
 Page 59MALAYSIA – FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS 
 
Sector or Subsector Description of measure 
indicating its inconsistency 
with Article II Countries to which the 
measure applies Intended duration Conditions creating the need for 
the exemption 
All Sectors 
 Liberalization of measures 
affecting movement of foreign 
semi-skilled and unskilled workers into Malaysia may be 
carried out in a differentiated 
manner based on reasons including proximity, either 
contiguous or regional, religious 
and/or cultural compatibility  All countries 
 Indefinite 
 The measure is required to: 
 
(1) maintain the arrangements 
under existing bilateral 
agreements;  and 
 (2) ensure that the movement of 
foreign semi-skilled and 
unskilled workers contributes to the social 
stability and industrial 
harmony in Malaysia 
 
All sectors 
 Waiver of measures in existing 
or future policies limiting 
foreign equity or interests in 
companies and businesses in 
Malaysia shall be carried out in a preferential and differentiated 
manner 
 All countries 
 Indefinite 
 The measure would be applied in a 
differentiated manner to those 
investments that match Malaysia's 
specific development requirements 
with the abilities and facilities provided by foreign enterprises and 
their home countries.  The objective 
is to maximize economic benefits of foreign participation in the Malaysian 
economy. 
 
Advertising services 
 20 per cent foreign content 
limitation for advertising is 
waived for these countries  Brunei Darussalam 
Indonesia 
Philippines Singapore 
Thailand 5 years 
 The measure is required to promote 
intra-ASEAN tourism 
 
 
__________