RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/O/MYS/Rev.1 
31 January 2006 
 
 (06-0419) 
Council for Trade in Services 
Special Session Original:   English 
 
 
MALAYSIA 
 
Revised Offer  
  The following revised offer, dated 7 Decemb er 2005, from the delegation of Malaysia, is 
being circulated to the Members of the Council for Trade in Services. 
 
_______________ 
 
1. Malaysia hereby submits its  Revised Offer under the on-going negotiations in Trade in 
Services pursuant to paragraph 15 of the Minist erial Declaration of 14 November 2001 and the 
framework of GATS, in particular paragraph XIX, and pursuant also to the Decision adopted by the 
General Council on 1 August 2004 and the r ecommendations contained therein.  
2. This revised 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 satisfactory offers in sectors where Malays ia has interest as indicated through requests 
submitted and bilateral discussions.  It is also c onditional upon the outcomes of the Doha negotiations 
and consistency with the framework of the GATS. 
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 current services negotiati ons.  Malaysia further 
reserves the right to make technical amendments to this revised offer and make corrections to rectify 
any errors, omissions, or inaccuracies in this offe r 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.  A reordering has been made on some services offers based on the Services Sectoral Classification list contained in the docum ent MTN.GNS/W/120 dated 10 July 1991. 
5. The Financial Services Horizontal Section,  which appears in Malaysia’s Schedule of 
Commitments had been inadvertently left out in th e transposition during the circulation of the Initial 
Offer.  It has now been reinserted in this Revised Offer. 
6. The editorial conventions used in this revised  offer follow the guidelines established by the 
WTO Secretariat in JOB(05)/6, i.e.: 
• Deletion  – Strikethroughs/Shading 
• New text – BOLD /Shading 
• Technical refinements – Deletion (Strikethrough/Italics/Shading ); New Text 
(Bold/Italics/ Shading) TN/S/O/MYS/REV.1 
Page 2  
 
 In addition: 
 {  }  -  information annotated solely for the purposes of explanations and does not form part 
of the proposed commitment  
 
_______________ 
 
 
  
  
 
 
 TN/S/O/MYS/Rev.1
Page 3MALAYSIA – 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 
HORIZONTAL COMMITMENTS SECTION  
 
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;  
  (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. 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. 
 
 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/Rev.1 
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 
 4) Unbound except for m easures affecting the entry 
and temporary stay of natural persons defined 
below: 
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 
 4) Unbound except for the categories of natural 
persons referred to under market access  
 (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/Rev.1
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 
 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 organisation'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/Rev.1 
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 
 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  
    
aa.. 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 co rresponding 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/Rev.1
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 
b. 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 
  
 TN/S/O/MYS/Rev.1 
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 
c. 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/Rev.1
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 
d. Architectural services 
(CPC 8671) 
 1), 2) None 
 
  
3) (a) Architectural services may be supplied only 
by a natural person 
(b) For multidisciplinary practices 
(Architecture, Engineering and/or Quantity 
Surveying)2, foreign equity up to a maximum 
of ten (10) per cent for joint ventures by 
professionals who are registered in the 
country of origin. Foreign Directorship is not 
allowed. 
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 arrangement 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) (a)  None 
 (b)  Unbound 
 
 
  
 
  
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.  
 
                                                      
2 While a multidisciplinary practice can comp rise architects, engineers a nd/or quantity surveyors, for the purposes of this offe r, it does not include quantity  
surveyors.    
 TN/S/O/MYS/Rev.1 
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 
e. Engineering services 
 (CPC 8672) 
 1), 2) None 
 
  
3) (a) Engineering services may be supplied only 
by a natural person. 
(b) For multidisciplinary practices 
(Architecture, Engineering and/or Quantity 
Surveying)3, foreign equity up to a maximum 
of ten (10) per cent for joint ventures by 
professionals  who are registered in the 
country of origin. Foreign Directorship is not 
allowed. 
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) (a) None 
 (b) Unbound 
 
 
  
 
  
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 
 
                                                      
3 While a multidisciplinary practice can comp rise architects, engineers a nd/or quantity surveyors, for the purposes of this offe r, it does not include quantity  
surveyors.   
  
  
 
 
 TN/S/O/MYS/Rev.1
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 
f. 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 
 
   
 
   
 TN/S/O/MYS/Rev.1 
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 
  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 
g. Urban Planning Services 
Covering development 
services programmes 
regarding land use, site 
selection, control and 
utilisation, road systems and 
servicing of land with a view 
to creating and maintaining 
systematic, coordinated 
urban planning. 
 
(CPC 86741) 
 1) , 2) None 
3) Unbound 
4) Unbound except for: 
i) independent professionals4 with an 
employment contract with a registered 
Malaysian town planning company. 
Independent professionals must possess 
recognised qualificat ions and obtained 
temporary registration with the relevant 
regulatory authorities; 
ii) consultants (with recognised qualifications 
and subject to registratio n) for wholly public 
funded projects and in collaboration with a 
Malaysian urban planning company.  
iii) Any other requirements or provisions as spelt 
out under the relevant legislation. 
 1), 2) None 
3) Unbound 
4) Unbound 
 4) The qualifying 
examination to 
determine the 
competence and 
ability to supply the 
service for the 
purposes of 
registration with the 
relevant regulatory 
authorities will be 
conducted in the 
English language. 
 
                                                      
4 Independent professionals is as defined in  para 2(b) in the horizontal section   
  
 
 
 TN/S/O/MYS/Rev.1
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 
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 .  
  
 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 privat e hospitals of al least 
100 
70 beds; 
 Practice to be only at a specified location and 
a change in 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  
 TN/S/O/MYS/Rev.1 
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 
B. Computer and Related 
Services  
  Consultancy services 
related to the installation of 
computer hardware 
 (CPC 841) 
 1), 2) None 
3)
 Only through a locally incorpora ted 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. 
  
 
 Consultancy services 
related to software implementation covering 
advisory and 
implementation services for customised software 
 (CPC 842) 
 1), 2) None 
3)
 Only through a locally incorporated joint -
venture corporation with Malaysian individuals 
or Malaysian -controlled corporations or both 
and the aggregate foreign shareholding in the 
joint-ventu re 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 corporations or both 
and the aggregate foreign shareholding in the 
joint-venture corp oration 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/Rev.1
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 
Computer software development 
services covering development 
of new software for general application, including, ready-
made software packaged for 
general application (CPC 842*) 
 1), 2), 3) None 
4)  Unbound except as indicated in 1 a) and b) and 2 
a) and c) in the horizontal section 1), 2), 3) None 
4) Unbound except for the categories of natural 
persons referred to under market access  
C. Research and Development 
Services  
    
 Research and experimental 
development services on social sciences and 
humanities (CPC 8520 
except 85203 and 85204) 
 1), 2) None 
3) Only through a locally incorporated joint-
venture corporation with Malaysian individuals 
or Malaysian-controlled corporations or both 
and the aggregate foreign shareholding in the joint-venture corporation shall not exceed 30 per 
cent 
4) Unbound except as indicated in 1 (a) and (b) and 
2 (a) and (c) in the horizontal section 
 1), 2) None 
3) None  
 
  
 
4) Unbound except for the categories of natural 
persons referred to under market access  
  
 TN/S/O/MYS/Rev.1 
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 
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/Rev.1
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. 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/Rev.1 
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 
 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/Rev.1
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 
 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/Rev.1 
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 
 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 
  
 
 Land scaping 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 in dividuals 
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 indica ted in 1 (a) and (b) 
and 2 (a) and (c) in the horizontal section  1), 2)  None 
3) None  
  
 
  
4) Unbound except for the ca tegories of natural 
persons referred to under market access  
  
  
  
 
 
 TN/S/O/MYS/Rev.1
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 
 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/Rev.1 
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 
  (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 
Services5 
 
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). 
    
                                                      
5 An asterisk against a CPC code number indicates that the co rresponding service subsector in this schedule covers only a part o r parts of the service subsector cla ssified  under 
the CPC concordance .  
  
 
 
 TN/S/O/MYS/Rev.1
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 
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. Circui t-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 switch ing and 
other international gateway  1) None 2) None 
3)
 Only through acquisition of shares of existing 
licensed public telecommunications operators:  
Foreign shareholding of up to 30 per cent in 
these service providers is allowed  
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/Rev.1 
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 
 facilities  
 9. Mobile services - 
analogue/digit al 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)a 
2. NSP (I)b 
3. ASP (I)c 
   
  
                                                      
Explanatory Note for Individual Licence Categories  
 
a. Network facilities provider (NFP) individual licence enables the provision of network facilities services such as earth stat ions, fixed links and cables,     public 
payphone facilities, radio communications transmitters and links, sa tellite hubs and towers, duct and pits used in conjunction with other network facilities 
 
b Network service provider (NSP) individual licence enables the pr ovision of network services such as bandwidth services, broad casting transmission services, 
cellular mobile   services, customer access services an d mobile satellite services 
 
c Application Service Provider, individual licence enables the provision of applications services such as PSTN telephony, publi c cellular telephone telephony 
services, IP telephony, public payphone service and public switched data service  
  
 
 
 TN/S/O/MYS/Rev.1
Page 25 
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 Services6 
 
 Telecommunication7 
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 below
8 
 
Class licence 
1. NFP (C)d 
2. NSP (C)e 
3. ASP (C)f 
 
 
 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  
 
 
d 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 links for public 
wireless data network services, for sole purpose of end users in buildings or a single clustered building complex. 
 
e Network service provider class licence enables the provision of niched customer access or niched connection services such as public 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 . 
  
 TN/S/O/MYS/Rev.1 
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 
 Data and transmission 
services  
 covering electronic mail, 
voice mail, on -line 
information and database 
retrieval, enhanced 
facsimile, code and 
protocol conversion  
 (CPC 7523)  1), 2)  None  
3) Only through a locally incorporated jo int-
venture corporation with Malaysian individuals 
or Malaysian -controlled corporations; or  
 Only through acquisition of shares of an existing 
licensed VAS operator/Corporation;  
 
 Aggregate foreign shareh olding shall not exceed 
30 per cent;  
 The licence sh all 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 acce ss 
  
 Mobile data services  
 (CPC 7523*)  1), 2)  None  
3) Only through a locally incorporated joint -
venture corporation with Malaysian individuals 
or Malaysian -controlled corporations; or  
 Only through acquisition of shares of an existing 
licensed VAS operat or/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   
 
                                                      
f  Applications service provider class licence enables the provisio n of applications services such as audiotext hosting service s provided on an opt-in basis, directory 
services, messaging services.  
  
 
 
 TN/S/O/MYS/Rev.1
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 
 T elex and telegraph 
services (CPC 7523*)  
 1), 2)  None  
3) Only through a locally incorporated joint -
venture corporation with Malaysian individuals 
or Malaysian -controlled corporations;  or  
 Only through acquisition of shares of an existing 
licensed telex and  telegraph 
operator/corporation; and  
 Aggregate foreign shareh olding shall not exceed 
30 per cent  
4) Unbound except as indicated in the horizontal 
section  
 1), 2)  None  
3) None  
  
 
  
 
 4)
 Unbound except for the categories of natural 
persons referred to under  market  access 
  
  
 TN/S/O/MYS/Rev.1 
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 
Explanatory Note  
 
1) This sector is governed by the Communications and Mult imedia 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/Rev.1
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 
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 services  
  covering transmission from 
foreign broadcast station of 
foreig n 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 lac k 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   
  
 TN/S/O/MYS/Rev.1 
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 
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 cont ractors, on project-
by-project basis: 
 
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. 
 1) Unbound due to lack of technical feasibility 
2) None 
3) (a)  None 
 
 
  
 
  
(b) Unbound 
 
 
 
  
 
 
 
  
 
  
 
  
 
 4) Unbound except for the categories of natural 
persons referred to under market access.   
  
 
 
 TN/S/O/MYS/Rev.1
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 
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/Rev.1 
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 
7. FINANCIAL SERVICES, INCLUDING INSURANCE 
 Horizontal Commitments Applicable to the Financial Services Sector 
 
1. The offers   commitments  in the financial services sector are in accordance with the General Agre ement on Trade in Services and the Annex on Financial S ervices. 
 
2. The limitations listed under the all-sector horizontal section shall not apply to financial services, unless otherwise indic ated. 
 3. In respect of offshore banks, offshore investment banks, commer cial banks, merchant banks, o ffshore insurance and offshore r einsurance companies, offshore insurance 
brokers, offshore insurance underw riting managers, offshore insurance managers, in surance companies, and representative offices  of commercial banks and merchant 
banks, the following conditions and  limitations on market access ,  and national treatment and movement of natural persons  shall apply in addition to specific limitations to 
the activity of each financial service as sp ecified for each activity in this Schedule. 
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 subsidiary 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. 
  
                                                      
* Due to lack of technical feasibility  
  
 
 
 TN/S/O/MYS/Rev.1
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 
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 indicated in the finance  sector   
all  financial services  horizontal section and in 
the respective activity listed below.  
 
  Acquisition by a foreign bank of an aggregate 
of 5 percent or more of shareholding in a 
Malaysian-owned or controlled commercial 
bank or merchant bank must meet the 
following criteria: 
  
  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 
percent .  Shareholding by a single person 
individually or jointly with related persons is 
limited to a maximum of 20 percent . 
 
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 significant representation in the 
Malaysian banking industry .  
                                                      
 * Due to lack of technical feasibility 
  
 TN/S/O/MYS/Rev.1 
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 
 (a) The foreign bank has the ability to facilitate 
trade and contribute to financial an d 
economic development of Malaysia;  
(b) The country of the foreign bank has 
significant trade and investment interests in 
Malaysia; and  
(c) The country of origin of the foreign bank 
does not have a significant representation 
in the Malaysian banking indust ry. 
 
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 
percent  or more of shareholding in a commercial 
bank or merchant bank if the person already 
holds 5 percent  or more of shareholding in 
another licensed financial institution.  
Introduction of new service products will be 
permitted subj ect to approval which will be 
based on prudential criteria.  
  
   
  
 
 
 TN/S/O/MYS/Rev.1
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 financial services- 
commercial banks and merchant 
banks - cont'd)  Entry is also permitted through the setting up of 
representative offices.  Representative offices 
can only undertake research, exchange of information and liaison services.  
 
4) Unbound except the following: 
(a) Unless otherwise specified, temporary 
presence of natural persons is offered only in 
respect of supply through the mode of commercial presence. 
 
(b)  For banks, t Two senior managers and five 
specialists or experts  for each institution  bank  
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 s Specialists or experts for each institution  
bank   for areas relating to: 
 (i) trade financing; 
 (ii) corporate finance; 
 (iii) treasury management; and 
 (iv) information technology. 
(dc) For a representative office, two foreign 
nationals. Only one foreign national for the two top posts. 
 
(ed) Entry shall be limited to a maximum period 
of five years. 
    
 TN/S/O/MYS/Rev.1 
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 
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  in accordance with the Insurance Act 
1996 and foreign share holding not exceeding 
51% percent  is permitted. 
 1), 2) Unbound* except as otherwise specified in 
this schedule. 
3) None except as indicated in the finance sector  
all financial services  horizontal section and in 
the respective activity listed below.    
  Foreign sharehol ding not exceeding 51 % percent  
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% percent . 
 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 % percent . 
Unbound for new licences. 
 Acquisition by a foreign insurance company of 
an aggregate of more tha n 5 percent 
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 foreign insurance company 
has significant trade and investment 
interests in Malaysia;   Acquisition by a foreign insurance company 
of an aggregate of more than 5 percent 
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 . 
  
                                                      
* Due to lack of technical feasibility 
  
  
 
 
 TN/S/O/MYS/Rev.1
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 
 (c) The country of the foreign insurance 
company does not have a significant 
representation in the Malaysian insurance 
industry; or  
(d) The foreign insurance company has the 
ability to provide technical expertise and 
know how to contribute to the financial and 
economic development of Malaysia .  
 
 An insurance company is not allowed to acquire 
more than 5 % percent  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 percent  
shareholding in an insu rance company are not 
permitted to acquire more than 5 percent  
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. 
    
 TN/S/O/MYS/Rev.1 
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 
 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 and three specialists or 
experts for branches of foreign insurance 
companies and locally incorporated 
insurance companies with an aggregate 
foreign shareholding of 50%  or more . 
 
 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  sSpecialists or experts for each 
institution for areas relating to: 
 
(i) underwriting of specialized classes  of general business;
 
(ii) information technology; and (iii) actuarial functions. 
 
 (dc) 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.    
  
 
 
 TN/S/O/MYS/Rev.1
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 
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) None.   Soliciting and advertisi ng in Malaysia 
for acceptances of deposits are not allowed.   
 
  
 
1) None.  
2) None.  
 3) Only permitted through a commercial bank, a 
merchant bank or an offshore bank. 
  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.  
 
 Foreign -owned commercial banks are permitted 
to accept foreign currency deposits from 
residents subject to conditions imposed on 
designated banks . 
 3) For commercial banks, unbound for branching 
(including off-pre mises ATMs) and 
networking with ATMs in Malaysia. 
 
 Branching is permitted for merchant banks 
with an aggregate foreign shareholding not 
exceeding 30 per cent.  
  
 4) Unbound except as indicated in the finance 
sector  all financial services  horizontal section. 
 4) Unbound except as indicated in the  finance 
sector  all financial services  horizontal section.  
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.   
 TN/S/O/MYS/Rev.1 
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 
 3) Entry as a non-bank for scheduled businesses is 
limited to: 
  (a) Foreign financial institutions through the 
establishment of a lo cally incorporated 
joint-venture company and aggregate foreign shareholding in such company shall not 
exceed 30  percent ;  or 
  (b) A representative office. 
 
 Representative offices can only undertake 
research and liaison services. 
 
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 percent . 
 
Merchant banks are not permitted to provide 
consumer credit and home mortgages. 
 
Only commercial banks are permitted to provide overdraft facilities. 
 
Offshore banks and offshore investment banks are permitted to lend in foreign currencies only. 
 
Representative offices can only undertake 
research and liaison services . 
 3) Foreign-controlled banking institutions in 
Malaysia are allowed to extend credit facilities 
(including factoring and leasing) up to a 
maximum of 40 50 percent  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 . 
 
For commercial banks, unbound for branching 
(including off-pre mises ATMs) and 
networking with ATMs in Malaysia  
Branching is permitted for merchant banks 
with an aggregate foreign shareh olding not 
exceeding 30 per  cent.  
 
  
  
 
 
 TN/S/O/MYS/Rev.1
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 
(Lending of all types - cont'd)  (4) For banks, unbound except as indicated in the  
finance sector  all financial services 
horizontal section. 
 
 For non-banks, unbound except one foreign 
national for a management post which is not the CEO post, for each establishment. 
 
 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. 
 (4) For banks, unbound except as indicated in 
the finance sector  all financial services 
horizontal section. 
 
 For non-banks, unbound except for the 
categories of natural persons referred to under market access. 
 
Residency requirements are required for 
lending of mon ey. 
 
  
Financial leasing. 
 1), 2) Leasing services to residents in any currency 
must be undertaken jointly with leasing companies or merchant banks in Malaysia. 
3) Entry as a non -bank is limited to:  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 49 percent.   
 
 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  49 percent ; or 
 
 (b) A representative office. 
 
 Representative offices can only undertake  
research and liaison services . 1), 2) None. 
  
3) None. 
   
 TN/S/O/MYS/Rev.1 
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 
  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 wit h 
effect from 1 July 2000.              
  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. 
 Representative offices can only undertake 
research and liaison services.  
   
 4) Unbound except two foreign nationals, one for 
management post which is not  the CEO post and 
one technical post, for each establishment. 
  For representative offices, two foreign nationals 
subject to one foreign national for the two top 
posts. 
 
 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. 
 4) Unbound except for the categories of natural 
persons referred to under market access. 
 
  For offshore leasing companies, unbound 
except for temporary presence of natural 
persons in respect of supply through the mode of commercial presence.   
  
 
 
 TN/S/O/MYS/Rev.1
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 
All payment and money 
transmission services, namely 
credit and debit cards, travellers cheques and bankers drafts. 1), 2)  Electronic fund transfer system requires 
approval. 
2)  None.  
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 card s or provide checking 
account services.  
 
 Only Malaysian controlled banks are permitted to 
issue, sell o r purchase ringgit travellers cheques.  
 1),2) None.  
 
2) None.  
3) For commercial banks, unbound for branching 
(including off-pre mises ATMs) and 
networking with ATMs in Malaysia. 
 
 Branching is permitted for merchant banks 
with an aggregate foreign shareholding not 
exceeding 30 per cent . 
 
 Sale or purchase of travellers cheques by 
individuals require citizenship status .  
  Sale or purchase of foreign currency and 
purchase of  travellers cheques other than by 
commercial banks require s a money changer's 
licence.  Entry is limited to establishment of a 
locally incorporated jo int-venture company and 
aggregate foreign shareholding in such company 
shall not exceed 30 percent . 
  Branching (including dispensers) is permitted 
for travellers cheques companies with foreign 
shareholding not exceeding 30 percent . 
  
 
  
 
 
 
 4) For banks, unbound except as indicated in the 
finance sector  all financial services  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  all financial services horizontal 
section. 
 
 For non-banks, unbound except for the 
categories of natural persons referred to under market access.   
 TN/S/O/MYS/Rev.1 
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 
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 se nior 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 by non -residents 
are governed  by rules relating to exchange 
control . 
 
3) None. 
4) Unbound except as indicated in the finance 
sector  all financial services and all-sector 
horizontal section. 1), 2)  None 
 
  
3) None 
4) Unbound except as indicated in the finance  
sector  all financial services and all-sector 
horizontal section. 
  
Money and foreign exchange 
broking services. 1), 2)  Broking services, involving Ringgit Malaysia 
and financial instruments issued in Malaysia 
must be effected through authorized dealers and money and foreign exchange brokers 
incorporated in Malaysia. 
3) Entry is limited to:  
 (a) equity participation in existing institutions 
and aggregate foreign shareholding in such 
institutions shall not exceed 30 percent ; or 
 
 (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. 1), 2)  None 
 
  
 
3) None  
 
  
   
  
 
 
 TN/S/O/MYS/Rev.1
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 
 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. 
  
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 w ith authorized banks in 
Malaysia. 
  
 Transactions by offshore banks and offshore 
investment banks in Labuan for own account are limited to instruments created and issued by 
offshore companies in Labuan and foreign 
companies abroad. 
 
 Trading for accounts of customers by offshore 
banks, offshore investment banks and offshore 
companies in Labuan is confined to non-resident 
customers and in instruments created and issued by offshore companies in Labuan and foreign 
companies abroad. 
 1) None 
 2) None 
3) None   
 TN/S/O/MYS/Rev.1 
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 
  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 for own account or 
account of customers - cont'd)  Trading and dealing in securities and financial 
futures and derivative products other than by designated financial institutions require 
establishment of a loca lly incorporated joint-
venture company and aggregate foreign shareholding in such company shall not exceed 
30 percent . 
  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   all financial services 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  all financial services horizontal 
section. 
  For non-banks, unbound except as indicated in 
the all-sector horizontal section.   
  
 
 
 TN/S/O/MYS/Rev.1
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 
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 fo r issues of securities 
outside Malaysia. 
 
 Only merchant banks are permitted to make 
submissions to the Securities Commission for new issues. 
 
 Participation by non-banks requires 
establishment of a loca lly incorporated joint-
venture company and aggregate foreign 
shareholding in such company shall not exceed 
30 percent . 
 
 Unbound for appointment as principal dealers.  1), 2) None 
 
3) None   
 4) For banks, unbound except as indicated in the 
finance sector  all financial services 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  all financial services 
horizontal section. 
 
 For non-banks, unbound except as indicated 
in the all-sector horizontal section.  
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 loca lly incorporated joint-
venture company and aggregate foreign 
shareholding in such company shall not exceed 
30 percent . 1) Unbound. 
2) None 3) None   
 TN/S/O/MYS/Rev.1 
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 
  Commercial banks are permitted to underwrite 
private debt securities only. 
  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  all 
financial services 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  all financial services 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. 
 
 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 shareholdings. 
 1) None 
2) None 
3) None   
  
 
 
 TN/S/O/MYS/Rev.1
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 
(Asset management - cont'd)  Entry as a non-bank, other than a Foreign Fund 
Management Company (FFMC) is limited to 
establishment of a loca lly incorporated joint-
venture company and aggregate shareholding in 
such company shall not exceed 30 percent . 
 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% percent . 
   
  Entry as an FFMC is limited to the establishment 
of a company incorporat ed locally with more 
than 50 % percent  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 % percent  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 % 
percent  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  
all financial services  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  all financial services  horizontal 
section. 
 For non-banks, unbound except as indicated in 
the all-sector horizontal section.   
 TN/S/O/MYS/Rev.1 
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 
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. 
 
2) Services other than investment and portfolio 
advice to residents must be undertaken jointly 
with commercial banks or merchant banks in 
Malaysia. 
 1) None. 
 
  
 
  
 
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 percent ; or 
 
 (b) A representative office. 
   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.
 3) None.  
   
  
 
 
 TN/S/O/MYS/Rev.1
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 
 4) For banks, unbound except as indicated in the  
finance sector  all financial services horizontal 
section. 
 
 For non-banks, unbound except as indicated in 
the all-sector horizontal section. 
 
 For representative offices, two foreign nationals 
subject to only one foreign national for the two top posts.  Entry shall be limited to a maximum 
period of five years. 
 4) For banks, unbound except as indicated in the  
finance sector  all financial services horizontal 
section. 
 
 For non-banks, unbound except as indicated in 
the all-sector horizontal section.  
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 company which transfers its OHQ 
services to Malaysia, a regional office of a foreign-owned company established in Malaysia, 
and a foreign-owned company which is already 
incorporated in Malaysia, may seek to qualify as 
an OHQ. 
  An OHQ must operate in Malaysia and fulfill the 
following criteria: 
  (a) Carry out at least three of the OHQ service 
activities; 
 (b) Have a sizeable network of companies 
outside Malaysia which includes the parent 
company or its head office and related 
companies; 1), 2)  Unbound
* 
3) None  
                                                      
* Due to lack of technical feasibility 
  
 TN/S/O/MYS/Rev.1 
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 
(Operational headquarters - 
cont'd)  (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; 
 (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 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 companies incorporated in 
Malaysia which are member companies   
participating organisations  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 
 
 
  
 
  
 
   
  
 
 
 TN/S/O/MYS/Rev.1
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 
 (Securities broking services-
cont'd) 2) Trades on Malaysian stock exchanges must be 
transacted through companies incorporated in 
Malaysia which are member companies  
participating organisations  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 
 (b) Establishment of a locally incorporated 
joint-venture company with a Malaysian stockbroking company. 
 3) None  
 And aggregate foreign shareholding in such 
company shall not exceed 30 49 percent .  The 
aggregate foreign shareholding will be 
permitted to be increased to 49 per cent with 
effect from 1 July 2000, subject to condit ions. 
 
A foreign stockbroking company is permitted to have shareholding in one stockbroking company 
only. 
 
Entry by recognized foreign stockbroking 
companies is also permitted through a representative office. 
    
 Representative offices are permitted to 
undertake research, information and liaison 
services only.  Representative offices are not 
permitted to publish and circulate research work in Malaysia. 
    
 TN/S/O/MYS/Rev.1 
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 
(Securities broking services - 
cont'd) New licences subject to conditions, including 
geographical location, numerical quota and other 
conditions to be determined. 
 
4) Unbound for a stockbroking company, except as 
indicated in the all-sector horizontal section. 
 
 For representative offices, two foreign nationals 
subject to only one foreign national for the two top posts.  Entry shall be limited to a maximum 
period of five years. 
  
 
  
4) Unbound except for the categories of natural 
persons referred to under market access.  
Commodity futures broking 
services. 1), 2)  Trades on any Ma laysian commodity futures 
exchange must be conducted through companies 
incorporated in Malaysia which are member 
companies  trading participants  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 percent  or any higher percentage as 
determined by the relevant authorities; or 
 (b) A representative office.   
 
 Representative offices are permitted to 
undertake research, information 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/Rev.1
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 
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 
  (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.  1) None 
  
 
 2) Direct placement ab road of insurance of: 
 (a)  movable or immovable property located in 
Malaysia, including any ship or aircraft registered in Malaysia; and 
 (b)  liability of residents to third party 
    requires approval. Approval will be 
granted if such insura nce is not available 
from direct insurance companies in 
Malaysia. 
 2) None  
 3) Only permitted through direct insurance 
companies. 
 
 Offshore direct insuran ce 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 percent . 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  all financial services horizontal section. 4) Unbound except as indicated in the finance 
sector  all financial services horizontal section.   
 TN/S/O/MYS/Rev.1 
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 
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 criteri a. 
  Offshore direct insuran ce companies in Labuan 
are not permitted to underwrite life insurance of 
residents.  This limitation does not apply to ordinary life insurance of high net worth 
residents. 1), 2)  Unbound 
3) Branching is only permitted for direct 
insurance companies wi th aggregate foreign 
shareholding of less than 50 percent . 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  all financial services  horizontal section. 
 4) Unbound except as indicated in the finance 
sector all financial services horizontal section.  
Reinsurance and retrocession 
(non-life).  
 
 
 
  1), 2) Outward reinsurance is permitted only if 
local capacity is not available. 
 
 
 
 
 3) Obligation on all insurers other than offshore 
direct insurance and offshore reinsurance 
companies to optimise national retention capacity before any outward reinsurance. 
 1), 2) Voluntary cession up to 30 percent  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) Unbound for measures granting special 
position to Malaysian National  Reinsurance 
Berhad.   
  
 
 
 TN/S/O/MYS/Rev.1
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 
(Reinsurance and retrocession 
(non-life)-cont'd) 
  Unbound for new licences. 
 
 Seven new licences for non life reinsurance 
business within 10 years ending 30 June 2005.  
 
 Entry is through the es tablishment 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 As ia and 
ability to procure sufficient business 
for their  branch/joint venture 
company; or  
(ii) Are from countries or regions having 
no representation in Malaysia, 
provided they bring in special 
expertise.  
 (b)  For entry through branches, priority will 
be given to foreign reinsurers which intend 
to base their regional headquarters in 
Malaysia .   
  (c)  For entry through joint -ventures, priority 
will be given to those joint ventures which 
have business plans to operate regionally.  
 (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.     
 TN/S/O/MYS/Rev.1 
Page 58 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)  (f)    Priority will be given to joint venture with a 
local partner which:  
 (i) has a minimum shareholders’ funds o f 
at least RM 3 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 
percent .  
  Entry as an offshore reinsurance company is 
confined to Labuan. 
   
 4) Unbound except for: 
 
 (a) Two senior managers and three specialists 
or experts  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. 
 
 (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. 
 4) Unbound except as indicated in the finance 
sector  all financial services horizontal section. 
 
 For offshore reinsurance companies, unbound 
except as indicated in the finance sector  all 
financial services horizontal section. 
 
  
  
 
 
  (c b) Entry shall be limited to a maximum period 
of five years. 
    
  
 
 
 TN/S/O/MYS/Rev.1
Page 59Modes 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 
  For offshore reinsurance companies, unbound 
except as indicated in the finance  sector  all 
financial services  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: 
 (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. 
 1), 2)  Unbound for fiscal incentives to promote 
reinsurance in Malaysia. 
3) None  
  Unbound for new licences. 
 
 Six new licenses for life reinsurance business will 
be issued up to 30 June 2005.  
 
 Entry is through the establis hment 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 branch offices in Mala ysia;  
 (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.     
 TN/S/O/MYS/Rev.1 
Page 60 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)  (b)  For entry through branches, priority will 
be given to foreign insurers which intend to 
base their regional headquarters in 
Malaysia.  
   
  (c)  For entry through joint ventures, priority 
will be given to those jo int 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 given to joint venture with a 
local partner which:  
 (i) has a minimum shareholders’ funds of 
at least RM 3 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 percent . 
 
 Entry as an offshore reinsurance company is 
confined to Labuan. 
  
   
  
 
 
 TN/S/O/MYS/Rev.1
Page 61Modes 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) 4) Unbound except for: 
 (a) Two senior managers and three specialists 
or experts  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  all financial services horizontal section. 
  For offshore reinsurance companies, unbound 
except as indicated in the finance sector  all 
financial services horizontal section.  
  (b)  Three specialists or experts for  each 
institution are permi tted. 
 Specialists or experts are individuals who 
 possess knowledge and expertise relating to 
 new products and services, technique or  management of the financial service 
 supplier. 
 
 ( cb) Movement of a senior manager, specialist or 
expert can be through intra-corporate 
transfers or otherwise. 
 
 ( dc) Entry shall be limited to a maximum period 
of five years. 
 
  For offshore reinsurance companies, 
 unbound except as indicated in the finance 
 sector  all financial services  horizontal 
 section. 
   
Insurance intermediation - 
insurance broking (excluding agency). 1), 2)  Direct insurance broking services can only be 
provided to offshore companies in Labuan. 
 
 Reinsurance broking is permitted. 
 1), 2)  None 
   
 TN/S/O/MYS/Rev.1 
Page 62 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 
 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. 3) None  
 4) Unbound except as indicated in the finance 
sector  all financial services horizontal  section.  4) Unbound except as indicated in the finance 
sector  all financial services horizontal section. 
  
Insurance intermediation 
- insurance underwriting and insurance management. 
 
 1), 2) Insurance underwriting and insurance 
management are not permitted. 
3) Unbound for onshore insurance underwriting and 
insurance management. 
  An offshore insurance underwriting manager is 
not permitted to provide services to any person 
other than offshore insurance companies in Labuan. 
 
 An offshore insurance manager is permitted to 
provide insurance management services to 
persons other than residents. 
 
4) Unbound except as indicated in the finance 
sector  all financial services horizontal section. 
 1), 2) None 
 3) None 
 
  
 
  
 
  
 
 
4) Unbound except as indicated in the finance 
sector  all financial services  horizontal section.  
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 companies 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. 1) None. 
  
2) None. 
3) None.  
 
  
   
  
 
 
 TN/S/O/MYS/Rev.1
Page 63Modes 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 temporary presence of 
natural persons in respect of supply through the 
mode of commercial presence. 
 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 
    
A. 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/Rev.1 
Page 64 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 
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/Rev.1
Page 65Modes 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/Rev.1 
Page 66 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 
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  
  
 
 
 TN/S/O/MYS/Rev.1
Page 67Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 4) Unbound except as indicated in 1 (a) and (b) and 
2 (c) in the horizontal section. For manning 
vessels, ratings is permitted up to 25 per cent. Ship crew is permitted to disembark only for 
duration of berth. 
 4) Unbound except for the categories of natural 
persons referred to under market access  
 Maritime agency services  
 covering marketing and 
sales of maritime transport 
and related services and acting on behalf of the 
companies organizing the 
call of the ship or taking over cargoes when 
required (CPC 7454*) 
 1), 2) None 
3) Only through a representative office, regional 
office or locally-incorporated joint- venture 
corporation with Malaysian individuals or Malaysian-controlled corporations or both and 
Bumiputera  shareholding in the joint-venture 
corporation of at least 30 per cent 
4) Unbound except as indicated in 1 (a) and (b) and 
2 (a) and (c) in the horizontal section 1), 2) None 
3) None 
 
  
 
 4) Unbound except for the categories of natural 
persons referred to under market access 
  
 
 Vessel salvage and 
refloating services except 
on inland waters (CPC 74540)  1), 2) None 
3) Only through a representative office, regional 
office or locally-incorporated joint-venture corporation with Malaysian individuals or 
Malaysian-controlled corporations or both and 
Bumiputera shareholding in the joint-venture 
corporation of at least 30 per cent 1), 2) None 
3) None 
  
 
  
 
 4) Unbound except as indicated in 1 (a) and (b) and 
2 (a) in the horizontal section 
 4) Unbound except for the categories of natural 
persons referred to under market access   
 TN/S/O/MYS/Rev.1 
Page 68 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 
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/Rev.1 
Page 69 
 
 
 
 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/Rev.1 
Page 70 MALAYSIA – 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 
 
 
 
__________