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Business Advisory2026-05-11•9 min read

Foreign Investors Guide: Setting up a 100% Foreign-Owned Sdn. Bhd.

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Sarah Wong
Senior Advisory Specialist

Malaysia's strategic location in Southeast Asia, strong legal framework based on common law, and bilingual workforce make it a prime hub for regional expansion. Foreign investors can incorporate a private limited company with 100% foreign equity across most sectors.

Important considerations include minimum paid-up capital for expatriate work pass (Employment Pass) approvals (typically RM 500,000 to RM 1,000,000 depending on equity structure), and obtaining the Wholesale, Retail and Trade (WRT) license from the Ministry of Domestic Trade (KPDN) if operating in distributive trade.

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Written by Sarah Wong

Senior Advisory Specialist

Frontier Management Services provides licensed corporate governance, secretarial custody, and accounting advisory across Malaysia.