Participation of foreign capital in manufacturing projects has been governed by the level of exports. Effective from 31 July 1998, the Malaysian government has liberalized the equity policy for the manufacturing sector in new investments, expansion or diversification as follows:
• Foreign investors can now hold 100% equity irrespective of the level of exports.
• Equity holdings in all projects were fully liberalized production effective from 17 June 2003, foreign investors can now 100% stake in all new priject investments and investments in the expansion or the draft diversification of existing companies, irrespective of the level of exports and without any product or activity is excluded.