RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/O/MYS 
31 January 2005 
 (05-0385) 
Council for Trade in Services 
Special Session Original:   English 
 
 
MALAYSIA 
 
Conditional Initial Offer  
 
 
 The following communication, dated 26 January  2005, from the delegation of Malaysia, is 
being circulated to the Members of the Council for Trade in Services.  
_______________ 
 
 1. Pursuant to paragraph 15 of the Ministeria l Declaration of 14 November 2001, Malaysia 
submits herewith its initial offer in the frame work of the ongoing services negotiations under the 
General Agreement on Trade in Services (GATS) and in the context of the Doha Development 
Agenda (DDA). 
2. This initial offer is conditional upon the outcome  of the negotiations stipulated by the GATS 
particularly on Article X (Emergency Safe guard Measures) as well as upon other WTO Members 
making substantive offers in sectors where Malays ia has interests as indicated through requests 
submitted and bilateral discussions. It is also c onditional upon the balanced  outcomes of the DDA 
negotiations. 
3. Malaysia reserves the right to modify, extend, redu ce, withdraw in whole or in part any of this 
offer at any time prior to the conclusion of the cu rrent services negotiations. Malaysia further reserves 
the right to make technical amendments to this offer and make corrections to rectify any errors, 
omissions, or inaccuracies in this offer as well as to clarify and interpret the terms and conditions of 
this offer.  
4. The classification of services sectors in this initial offer is based on the 1991 Provisional 
Central Product Classification (CPC) of the United  Nations Statistical Office, unless otherwise 
specified. The ordering is based on the Services Sect oral Classification list contained in the document 
MTN.GNS/W/120 dated 10 July 1991. 
5. The editorial conventions used in this initia l offer follow the guidelines established by the 
WTO Secretariat in JOB(02)/88, i.e.,: 
• BOLD   –  New text 
• STRIKE OUT   –  Deleted text 
• ITALICS  - Where any new or deleted text constitu tes merely a technical refinement that 
does not alter the scope or substance of an existing commitment  
 In addition:  
{  }  -  information annotated solely for the purposes of explanations and does not form part 
of the proposed commitment   TN/S/O/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.    TN/S/O/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 m easures 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 immediately preceding the date of 
their application for a work permit and he is 
to serve in at least a similar capacity.    TN/S/O/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 Malaysians 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 least one year by a foreign service supplier, whos e 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.   
 
 
  
 
  
 
  
 
   TN/S/O/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 corre sponding service subsector in this schedule covers only a part o r parts of the service subsector 
classified  under the CPC concordance.  TN/S/O/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 aggreg ate 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 aggreg ate 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 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 
   TN/S/O/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 2b) only an architect 
who is a consultant to a project wholly
-financed 
by a foreign government or implemented under a 
bilateral arra ngement between governments 
subject to temporary registration for a period of 
one year per temporary registration  in 
collaboration with a Malaysian professional 
architect for wholly foreign funded projects.    
 1), 2) Architectural services must be 
authenticated by a registered architect  
licensed professional 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 
 
 
  
 
  
 
  TN/S/O/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 n ecessary 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 
 
  
 
  
 
  
 
  
 
   TN/S/O/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
 70 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 
3) None  
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 
  
 
 
 
 
  
 
   TN/S/O/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 
 Consultancy services 
related to software implementation covering 
advisory and 
implementation services for customised software 
 (CPC 842) 
 1), 2) None 
3)
 Only through a locally incorporatedjoint -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  
3)  None  
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  
 
Data Processing Services (CPC 843) 
 
 1), 2) None 
3) None 
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 
  
 
Database services 
(CPC 8440) 1), 2) None 
3) Only through a locally incorporated  joint -
venture corporation with Malaysian individuals 
or Malaysian -controlled corporati ons or both 
and the aggregate foreign shareholding in the 
joint-venture corporation shall not exceed 30 per 
cent 
3) None 
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    TN/S/O/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 
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  
 
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 
  
 
  
 
  TN/S/O/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 sharehol ding 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 sharehol ding 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 
  
 
   
 
   TN/S/O/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 sharehol ding 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 sharehol ding 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 
  
 
 
 
  
 
  
  TN/S/O/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 sharehol ding 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 sharehol ding 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 sharehol ding 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 
  
 
 
 
  
   TN/S/O/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 sharehol ding 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 
  
 
   TN/S/O/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 compan y 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;   
 
 
   TN/S/O/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  
2. COMMUNICATION   
SERVICES   
C.  Telecommunication 
Services2 
 
Basic Telecommunications  
 
Based on domestic 
regulations, Malaysia has 
reclassified its 
communications service 
sector on the basis of 
provision of Network Facility services (NFP), 
provision of Network 
Service (NSP), provision of Application Service (ASP).     
 
 
 
                                                      
 2 An asterisk against a CPC code number indicates that the corre sponding service subsector in this schedule covers only a part o r parts of the service subsector 
classified  under t he CPC concordance .  TN/S/O/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 
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 
regardless of whether the means of delivery of services are wired or wireless are 
mapped into the 
aforementioned three categories. 
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  
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  1) None 
2) None 
3) Only through acquisition of shares of exist ing 
licensed public telecommunications operators:  
Foreign shareholding of up to 30 per cent in 
these service providers is allowed  
3) With respect to NFP an d NSP components of 
the service, only through an acquisition of 
shares of existing licensed NFP(I), NSP(I).   
With respect to ASP( I), through a locally 
incorporated joint-vent ure corporation with 
Malaysian individuals or Malaysian-controlled corporations; or through 
acquisitions of shares of an existing licensed 
ASP(I) operator/corporations. 
- For NFP(I) and NSP(I), foreign 
shareholding of up to 30 per cent in these 
service providers is allowed. 
 
- For ASP(I), foreign shareholding of up to 
49 per cent in these service providers is allowed.  
 
[The management control of such companies 
shall be in the hands of Malaysians and in the 
case of Telekom Malaysia, the foreign shareholding permitted shall not exceed 30% 
foreign in aggregate with not one single country 
holding more than 5% of the equity at any one time] 1) None 
2) None 
 
 
 
 3) None 
 
 
 
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
 Pro-competition regulatory 
principle in respect of interconnection arrangement and competition (Refer to 
Annex I) 
 
 
 
 
 
 
  
   TN/S/O/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 
 facilities  
 9. Mobile services - 
analogue/digital cellular  
 10.  Paging services  
 11.  Trunked radio services  
 12.  Video transport services  
 4) Unbound except as indicated in horizontal 
commitments 4) Unbound except as indicated in horizontal 
commitments  
Individual licence 
1. NFP (I)2 
2. NSP (I)3 
3. ASP (I)4 
   
  
                                                      
Explanatory note for Individual Licence Categories  
 
2 Network facilities provider (NFP) individual licence enables the prov ision of network facilities services such as earth station s, fixed links and cables, public payphone facilities, 
radiocommunications transmitters and links, satellite hubs and  towe rs, poles, ducts and pits used in conjunction with other ne twork facilities. 
 
3 Network service provider (NSP) individual licence enables the provi sion of network services such as bandwidth services, broadc asting transmission services, cellular mobile   services, customer 
access services and mobile satellite services 
 
4 Application Service Provider, individual licence enables the provi sion of applications services such as PSTN telephony, public  cellular telephone telephony services, IP telephony, public 
payphone service and  public switched data service  
  TN/S/O/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 
Value-Added Services4 
 
 Telecommunication5 
services of which enhanced 
value-added services must 
be provided from channels or lines obtained only from 
licensed network operators
 
 NFP(I) and NSP(I) 
operators and are also 
mapped into the three 
categories below6 
 
Class licence 
1. NFP (C)5 
2. NSP (C)6 
3. ASP (C)7 
 
 
 1) None 
2) None 
3) With respect to NFP and NSP components   
of the service, only through acquisition of 
shares of existing li censed NFP(C), NSP(C). 
With respect to ASP, through a locally incorporated joint-vent ure corporation with 
Malaysian individuals or Malaysian-
controlled corporations; or through acquisitions of shares of an existing licensed 
ASP(C) operator/corporations. 
 
- For NFP(C) and NSP(C), foreign 
shareholding of up to 30 per cent in 
these service providers is allowed. 
 
- With respect to ASP(C), foreign 
shareholding of up to 49 per cent in these service provider is allowed. 
4)  Unbound except as indicated in horizontal 
commitments.  1) None 
2) None 
3) None 
 
 
  
 
  
 
  
 
  
 
  
4)  Unbound except as indicated in horizontal   
commitments. 
  
                                                      
Explanatory note for Class Licence Categories  
 
 
5 Network facilities provider class licence enables the provision of  niched or limited purpose network facilities such as radio communications transmitters for public mobile radio network 
services, radio communications transmitters for public radio paging network services, radio communications transmitters and lin ks for public wireless data network services, for sole purpose 
of end users in buildings or a single clustered building complex. 
 
6 Network service provider class licence enables the provision of ni ched customer access or niched connection services such as p ublic mobile radio network service, one or two way radio paging 
network services, terrestrial wireless fixed/mobile data network services for the specific purposes of messaging, surveillance,  ticketing or inventory management, offered for the sole purpose of 
connecting end users in a building or a single clustered building complex. 
 
7 Applications service provider class licence enables the provision of applications services such as audiotext hosting services provided on an opt-in basis, direct ory services, messaging services.    TN/S/O/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 
 Data and transmission 
services  
 covering electronic mail, 
voice mail, on -line 
information and dat abase 
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 shar es of an existing 
licensed VAS operator/Corporation;  
  Aggregate foreign shareh olding 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 Ma laysian individuals 
or Malaysian -controlled corporations; or  
 Only through acquisition of shares of an existing 
licensed VAS operator/corporation; and  
 Aggregate foreign shareh olding shall not exceed 
30 per cent  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   
 
 Telex and telegraph 
services (CPC 7523*)  
 1), 2)  None  
3) Only through a locally incorporated joint -
venture corporation with Ma laysian individuals 
or Malaysian -controlled corporations;  or  
 Only through acquisition of shares of an existing 
licensed telex and telegraph 
operator/corporation; and  
 Aggregate foreign shareh olding shall not exceed 
30 per cent  
4) Unbound except as indica ted in the horizontal 
section  
 1), 2)  None  
3) None  
 
 
  
 
  
4)
 Unbound except for the categories of natural 
persons referred to under market  access 
  
 
 
  TN/S/O/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 
Explanatory Note  
 
1) This sector is governed by the Communications and Multi media Act 1998 and it subsidiary rules and regulations.  
2) Definitions as per Communications and Multimedia Act 1998 
  
a. Network facilities mean any element or combin ation of elements of physical infrastructu re used principally for, or in connectio n with, the provision of 
network services, but does no t include customer equipment. 
 Network facilities provider means a person wh o is an owner of an y network facilities. 
 
b. Network services means a service for ca rrying communications by means guided and/unguided electromagnetic radiation. 
 Network service provider means a person who provides network services. 
 
c. Application service means a service prov ided by  means of, but not solely by means of, one or more network services.  
 Application service provider mans a person who provide an applications service.  
 
3) Definitions as per Communications and Multimedia (Licensing) (Amendment) Regulations 2001  
a. Network facilities provider class licens ee means a person who is re gistered with the Commission to provide a network facilit y in accordance with the 
 provisions of the Act and these Regulations. 
Network facilities provider individual licen see means an individual licence granted to a network facilities provider in accorda nce with the provisions 
of the Act and these Regulations.  
 
b. Network service provider class licensee me ans a person who is registered with the Co mmission to provide a network service in  accordance with the 
provisions of the Act and these Regulations. 
Network service provider individu al licensee means an individual licence granted to a network service provider in accordance wi th the provisions of 
the Act and these Regulations.  
 
c. Application service provider class licensee means a person who is registered wi th the Commission to provide an application s ervice in accordance with 
the provisions of the Act and these Regulations. 
Application service provider indivi dual licensee means an individual licence granted to an applications service provider in acc ordance with the 
provisions of the Act and these Regulations.  
 
   TN/S/O/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 
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 not exceed 30 per cent  
1) Unbound 2) None 
3) None 
  
  
 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 
  
 
 Broadcasting ser vices  
 
 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  
  
 
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) (a) 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 
   shareholding in the joint-venture     corporation shall not exceed 30 per cent 
 
(b) Foreign construction companies that are 
not locally incorporated may carry out 
the following construction projects jointly 
with local contractors, on project-by-project basis: 1) Unbound due to lack of technical feasibility 
2) None 
3) (a)  None 
 
  
 
  
 
(b) Unbound   
  TN/S/O/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 
 i. Construction projects wholly financed 
by foreign investment and/or grants 
ii. Construction projects financed by 
loans of international tendering 
according to the terms of loans 
iii. Projects with foreign investment equal 
to or more than 50 per cent where 
local expertise is not available;  
iv. 100% Malaysian funded construction 
projects where local expertise is not 
available 
 
Subject to compulsory s ub-contracting to local 
sub-contractors.    
 4) Unbound except as indicated in the horizontal 
section 
 4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 
  
 
  
 
  
 
  
 
  
 
  
 
    TN/S/O/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 
5. EDUCATIONAL 
SERVICES 
 
C. Higher Education   
 
Other Higher Education 
Services provided by privately funded higher 
education institutions 
excluding private higher education institutions with 
government equity or that 
receive government assistance.  
(CPC 92390) 
  
  
 
 
1) Unbound except for franchise and twinning 
 arrangements between foreign based  institutions and Malaysian based educational 
 institutions.  
2) Unbound except for students moving abroad  including students under franchise and 
 twinning arrangements.  
3) Only through a joint venture with foreign 
 equity not exceeding 49% and subject to an 
 economic needs test.  
4) Unbound except as indicated in the  horizontal section.  
  
 
 
1) Unbound 
  
 
2) Unbound  
 
3) Unbound  
 
4)  Unbound except as indicated in the 
horizontal section.  
  
 
 
3) More than 49% foreign 
equity will be considered subject to 
an additional economic 
needs test which includes among others:  
 
(a)  Courses offered are 
critical to Malaysia 
e.g. Medicine, 
Dentistry,  Engineering, 
Business, Science 
and Technology;  
 
(b)  Research- based 
 programmes;   
(c)  Collaborative  
 research with local 
 institutions; and (d) 
 share of foreign  students. 
  TN/S/O/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 
 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 
 in 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-foreign 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.  
  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. 
  
 
                                                      
∗ Due to lack of technical feasibility.   TN/S/O/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 –  
commercial banks and 
merchant banks – cont`d)  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. 
  
 
  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. 
  
  TN/S/O/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 
(All financial services –  
commercial banks and merchant banks – 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) 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.  
 
  (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.  
                                                      
∗ Due to lack of technical feasibility   TN/S/O/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 
(All financial services - Direct  
insurance companies – cont`d)  Foreign shareholding no t exceeding 51% is also 
permitted for the existing foreign shareholders of locally incorporated  insurance companies 
which were the original owners of these 
companies. Provided 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:  
 
  (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. 
  
  TN/S/O/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 
(All financial services - Direct  
insurance companies – cont`d)  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.  
 
 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: 
  
   TN/S/O/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 
(All financial services - Direct  
insurance companies – cont`d)   (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.  
  
 
 
 
  
 
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 
acceptances 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.   TN/S/O/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 
 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. 
   
 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.    TN/S/O/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 
(Lending of all types – cont`d)  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 un dertaken 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.   
  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. 
    TN/S/O/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 
(financial leasing – cont`d) 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 offi ces, 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 presence 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.  
  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 sharehol ding 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.    TN/S/O/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 
(All payment and money 
transmission services – 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. 
  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. 
  
 
 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. 
  
  TN/S/O/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 
 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. 
    TN/S/O/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 
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 currencies with authorized banks in Malaysia. 
 
 Transactions by offshore banks and offshore 
investment banks in Labuan for own accounts 
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 c onfined 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.   
  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. 
    TN/S/O/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 
(Trading for own account or  
account of customers – cont`d)  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.  
 
 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.    TN/S/O/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 
 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  
  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. 
    TN/S/O/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 
(Asset management – cont`d)  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 compan y incorporated locally 
with more than 50% foreign shareholding in the 
company and requires the approval of the Securities Commission. Sourcing of local funds 
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.   
  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.    TN/S/O/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 
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  
  Representative offices (including those of 
commercial banks, merchant banks and 
securities companies) are permitted to undertake research, information 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 offi ces, 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.   TN/S/O/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  
(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, 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). 
 1), 2) Unbound
∗ 
3) Only through a locally incorporated wholly 
foreign-owned company. 
 
 A foreign-owned company, a regional office of 
a foreign-owned compan y 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. 
 An OHQ must operate in Malaysia and fulfil 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; 1), 2) Unbound* 
3) None  
  (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;  
 
 
  
 
(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.   
                                                      
∗ Due to lack of technical feasibility.   TN/S/O/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 
 4) Unbound except as i ndicated in the all-sector 
horizontal section. 
 4) None  
 Securities broking services 
comprising: 
- broking services; 
- credit reference and 
analysis; 
- investment portfolio 
management and advice; 
and 
- market research. 1) Trades on Malaysian stock exchanges must be 
transacted through comp anies incorporated in 
Malaysia which are member companies of the 
exchange. 
 Promotion in Malaysia of Malaysian stocks 
requires approval. 
 Provision of investment advisory services and 
 credit reference services to residents requires  commercial presence. 1) None  
 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.   
(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. 
    TN/S/O/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 
  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-sect or horizontal section. 
 
 For representative offi ces, 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.  
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. 
    TN/S/O/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 
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.   
(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.  
  
  TN/S/O/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 
  Offshore direct insurance companies in Labuan 
are not permitted to under write 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. 
  
 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 re insurance 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.     TN/S/O/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 
  (c) For entry through joint-ventures, priority 
 will be given to those joint-ventures  which have business plans to operate 
 regionally.   
(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. 
   
  TN/S/O/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:     TN/S/O/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.   
  Aggregate foreign shareholding in the 
Malaysian Life Reinsurance Group Berhad shall 
not exceed 30 per cent. 
    TN/S/O/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 
(Reinsurance and retrocession 
(life) – cont`d)  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.  
 
  
   TN/S/O/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 in surance 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. 
  
  TN/S/O/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
 40 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 
  
   TN/S/O/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 
   TN/S/O/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  
   TN/S/O/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 
  
 Malaysian registered vessels
 
 
 To register a vessel in Malaysia, the following 
conditions must be met: 
 (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. 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 
4) Garbage collection and 
ballast waste disposal 
5) Port Captain's services 6) Navigation aids 
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 
 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   TN/S/O/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 
 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    TN/S/O/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)  
   TN/S/O/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 betw een 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 sh all 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 power 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. 
  
  TN/S/O/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 
 
 
 
__________