Aladdin has visited the sales gallery of a development in Petaling, Selangor and was attended by Genie, the sales agent of the developer. Below is their conversation.

Aladdin : Genie, I am amazed of the design of the show unit of the bungalow lot that you have just showed me. I believe my wife and children will love the place as well. Is it up for sale?

Genie : Glad that you love what you just saw and yes it is on sale for RM1.6 million, Mr Aladdin.

Aladdin : Great, I will take the unit. Hold on, are you aware of any restriction for foreigner to buy property in Malaysia? As you can see I am from United Arab Emirates.

Genie : Don’t worry Mr Aladdin, any foreigner can purchase a property above RM500,000 in Selangor and the bungalow unit is well above that limit.

Is that true?


for foreign purchases prior to 1 September 2014 but FALSE for all foreign purchases from 1 September 2014 onwards.

According to the Circular issued by the Director of Department of Land and Mines of Selangor dated 28 August 2014, the new guidelines for non-Malaysian citizens, permanent residents and foreign companies which is effective from 1 September 2014 (applicable to all sale and purchase agreement entered on or after the effective date) are as follow:-

  • Foreigners, permanent residents and foreign companies are NOT allowed to purchase:-
    • Bumiputera units/ quota;
    • Agricultural land;
    • Malay Reserved Land;
    • Public auction property; and
    • “Landed” for residential (individual title). ( Landed strata is permissible subject to the minimum price below.)
  • Requirements for State consent application:-Category
      1. Residential
        • Zone 1 & 2 – RM2,000,000.00
        • Zone 3 – RM1,000,000.00
        • Restricted to stratified properties only including ‘Landed Strata’
      2. Commercial
        • Zone 1, 2 & 3 – RM3,000,000.00
      3. Industrial
        • Zone 1, 2 & 3 – RM3,000,000.00
        • Only those with restriction in interest need approval from State authority. AND the transferee has obtained manufacturing licence issued by Ministry of International Trade and Industry (MITI).

    Zone 1 – District of Petaling, Gombak, Hulu Langat, Sepang, Klang
    Zone 2 – District of Kuala Selangor, Kuala Langat
    Zone 3 – District of Hulu Selangor, Sabak Bernam

    1. Requirements for MM2H program:-
      • To purchase from developers only in area specifically approved by the State authority;
      • To obtain approval from Immigration department and Visa/Passport stamped with “Malaysia My Second Home”;
      • Only one (1) purchase for residential purpose;
      • Approval not subject to transfer to any parties;
      • Price range is subject to price range fixed by the State authority
    2. Approval remains valid for two (2) years from date of approval letter.

Thus, Aladdin is unable to purchase the bungalow lot in Selangor based on 2 reasons, namely:

  1. It is a landed property (unless it is landed strata); and
  2. Purchase price is below RM2,000,000.00.

A copy of the Circular is enclosed for your reference.











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