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
