New legislation will require local incorporation of all insurance companies. Foreigners may hold up to 49 percent of the equity in a stockbroking firm. Currently there are 11 stockbroking firms which have foreign ownership and 20 representative offices of foreign brokerage firms. Fund management companies may be 100 percent foreign-owned if they provide services only to foreign investors, but are limited to 70 percent foreign ownership if they provide services to both foreign and local investors. Below RM1 million, countertrade is welcomed and even encouraged but not required.
Incentives exist for local procurement.
Export Subsidy Policies Malaysia offers several export allowances. Malaysia also provides tax incentives to exporters, including double deduction of expenses for overseas advertising and travel, supply of free samples abroad, export promotion, overseas sales offices, and research on export markets. Police and legal authorities are responsive to requests from U.S. firms for investigation and prosecution of copyright infringement cases, though pirated videotapes and computer software continue to be widely available. Trademark infringement and patent protection have not been serious problem areas in Malaysia for U.S. companies. Worker Rights a.