Protection of Foreign Investment - MIDA | Malaysian Investment Development Authority
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Protection of Foreign Investment

Protection of Foreign Investment

Malaysia’s commitment in creating a safe investment environment has attracted more than 8,000 international companies from over 40 countries to make Malaysia their offshore base.

Investment Guarantee Agreements

Malaysia’s readiness to conclude Investment Guarantee Agreements (IGAs) is a testimony of the government’s desire to increase foreign investor confidence in Malaysia. IGAs will:

• Protect against nationalization and expropriation

• Ensure prompt and adequate compensation in the event of nationalization or expropriation

• Provide free transfer of profits, capital and other fees

• Ensure settlement of investment disputes under the Convention on the Settlement of Investment Disputes of which Malaysia has been a member since 1966.

Malaysia has entered into Investment Guarantee Agreements (IGAs), which aim to promote a conducive environment for investments.

List of Signed & In Force IGAs

Convention on the Settlement of Investment Disputes

In the interest of promoting and protecting foreign investment, the Malaysian government ratified the provisions of the Convention on the Settlement of Investment Disputes in 1966. The Convention, established under the auspices of the International Bank for Reconstruction and Development (IBRD), provides international conciliation or arbitration through the International Centre for Settlement of Investment Disputes located at IBRD’s principal office in Washington.

Asian International Arbitration Centre (AIAC)

The Asian International Arbitration Centre (formerly known as Kuala Lumpur Regional Centre for Arbitration) was established in 1978 under the auspices of the Asian-African Legal Consultative Organization (AALCO) – an intergovernmental organization cooperating with and assisted by the Malaysian government. A non-profit organisation, the Centre serves the Asia Pacific region. It aims to provide a system to settle disputes for the benefit of parties engaged in trade, commerce and investments with and within the region. Any dispute, controversy or claim arising out of or relating to a contract, or the breach, termination or invalidity shall be decided by arbitration in accordance with the Rules for Arbitration of the Kuala Lumpur Regional Centre for Arbitration.

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