Malaysia

Ministry tightens oversight of foreign investment and cost of living strategies

Armizan sets out regulatory reforms for foreign companies, expansion of retail support schemes, and government measures to stabilise prices and enhance household income

Updated 4 months ago · Published on 03 Mar 2026 3:57PM

Ministry tightens oversight of foreign investment and cost of living strategies
Minister says foreign involvement in the retail and distribution sectors must receive ministry approval under the Foreign Participation Guidelines (Photo from NSTP) - March 3, 2026

THE Minister of Domestic Trade and Cost of Living delivered a comprehensive address to the Senate today, detailing reforms to foreign business participation, enhancements to retail cash assistance schemes, and multi-sectoral initiatives designed to tackle the rising cost of living.

Responding to recommendations from Senator Tan Sri Low Kian Chuan, the minister clarified that under the Business Registration Act 1956, only Malaysian citizens and permanent residents can register sole proprietorships or partnerships.

Foreign entities may incorporate under the Companies Act 2016 without a mandated minimum capital requirement, but are subject to oversight to ensure investments contribute to national economic growth and benefit local workers.

Minister Datuk Armizan Mohd Ali said: “For private limited companies, at least one resident director in Malaysia is required; for public companies, at least two resident directors are mandatory.

“This regulatory mechanism is essential,” he explained, stressing that the measures maintain control while supporting economic expansion.

He added foreign involvement in the retail and distribution sectors must receive ministry approval under the Foreign Participation Guidelines.

These guidelines ensure market openness is balanced with protection for local traders and encourage technology transfer, employment, local vendor development, and domestic supply chain strengthening.

The minister confirmed that the guidelines are being updated to reflect evolving industry trends and government policy priorities.

A special task force led by the Ministry of Finance has been established to review regulatory frameworks, enforcement, and monitoring mechanisms for foreign investment in domestic markets.

On retail initiatives, the minister addressed proposals to broaden eligibility for the Sumbangan Asas Rahmah (SARA) cash assistance programme.

“At the KPDN level, implementation support for the SARA programme is delivered through the RAHMAH MADANI Sales Programme (PJRM).

“As of January 2026, 30 percent of more than 2,100 PJRM operators have received SARA terminals, enabling citizens to purchase goods using SARA cash assistance,” he said, noting continued collaboration with the Ministry of Finance to expand coverage.

Armizan addressed concerns over the cost of living, highlighting government efforts to stabilise essential goods and services while boosting household income.

Measures include enhanced supply chain monitoring, market regulation, minimum wage increases, progressive pay policies, entrepreneurship support, targeted cash assistance, and other programmes to promote equitable economic opportunity.

Through the National Cost of Living Action Council (NACCOL), the government is implementing a “whole-of-government” strategy across food, health, education, housing, transport, income, and utilities.

These efforts will continue under the 13th Malaysia Plan and be formalised in the National Cost of Living Action Plan 2026–2030.

In his closing remarks on the Royal Address debate in the Dewan Negara on Tuesday, Armizan expressed his gratitude to senators for engaging with the ministry’s portfolio and highlighted the government’s commitment to safeguarding domestic micro, small, and medium enterprises (PMKS) amid foreign business activity. - March 3, 2026

Spotlight

Malaysia

“There are traitors among us waiting to topple Aminuddin” - Loke

World

Thailand pub fire death toll climbs to 32 as negligence probe intensifies

World

Cambodian casino tycoon's empire allegedly links to major cyber scam compound

Malaysia

Rumours rife over KJ contesting Negeri polls, possibly in Rembau

Malaysia

DAP Melaka moves into opposition benches after withdrawing from state government

Malaysia

Malaysia records 17.5 million international tourist arrivals from January - May

Malaysia

Cops probe viral incident of man being forced into Proton Waja

Malaysia

Pregnant woman accused of stealing: Lotus's apologises, takes disciplinary action

You may be interested

Malaysia

Nation diversifies energy supplies as Anwar say stocks remain stable despite Hormuz uncertainty

Malaysia

Govt studying Net Disposable Income model to better target welfare assistance

Malaysia

Kedah teen's false kidnapping report uncovers alleged school bullying

Malaysia

Zara Qairina inquest: Qualifications of 76th witness questioned

Malaysia

Malaysia-Singapore step up economic integration as JS-SEZ plan nears completion

Malaysia

Rumours rife over KJ contesting Negeri polls, possibly in Rembau

Malaysia

Non-existent investment scams account for half of Malaysia’s RM5.37b online fraud losses

Malaysia

Johor launches investigation into Forest City Network School amid security, regulatory questions