Company: GDHLF
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001410578-25-000935
Chunk: 230

Company: GDS Holdings Ltd
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 230
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 Investment Restrictions

In the telecommunications sector, foreign equity restriction requirements apply for individual licenses (e. g. NFP(I) and/or NSP(I) licenses), where foreign entities may own up to 49% of the equity, while the remaining 51% must be held by Malaysians, of which at least 30% must be held by Bumiputera, i. e., Malay and local indigenous people in Malaysia.

Table of Contents

Regulations on Dealings with Land

The National Land Coderequires that all land dealings be registered in order to confer title or interest on the new proprietor or interest holder. In order to conduct certain dealings in relation to any land in Malaysia as a foreign entity, we need to obtain State Authority Consent pursuant to the National Land Code. The Guideline on the Acquisition of Properties, as updated on July 13, 2022, further prescribes the permitted properties as well as procedures on the acquisition of properties by foreign interests. However, an exception to the requirement for State Authority Consent may be available to us where we are a Malaysia Digital Status company.

Regulations on Development of Land and Construction of Buildings

The Town and Country Planning Act 1976requires any person intending to commence, undertake or carry out any development, to obtain a planning permission from the local planning authority.

The Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994, or theConstruction Industry Development Board Act 1994, facilitates the registration and accreditation of contractors that are carrying out construction works.

The Street, Drainage and Building Act 1974requires that a certificate of completion and compliance be issued by a local authority before occupation of a building.

Regulations on Business Licenses and Employment Related Registrations

The Local Government Act 1976empowers every local authority to grant a license or permit for any trade, occupation or premises and such license shall be subject to such conditions and restrictions as the local authority may prescribe.

The Companies Act 2016provides for the registration and administration of companies and corporations, and allows foreign companies to elect whether to incorporate a local Malaysian company or establish a local branch office in Malaysia.

The Income Tax Act 1967requires local companies to register for an income tax reference number with the Inland Revenue Board of Malaysia upon commencing business in respect of itself as a taxable person and as an employer.

As an employer, we will also be required to register with and make the relevant contributions to the Employment Provident Fund, the Social Security Organisation, the Human