Can Foreigners Buy Land in Malaysia? (2025 Update)
Before diving into the details, let’s first understand how foreigners are defined under Malaysian law.
Who is Considered a Foreigner?
According to Section 433B of the National Land Code (NLC), a foreign interest refers to:
- Non-Malaysian individuals
- Permanent Residents (PRs) of Malaysia
- Foreign companies or institutions
- Local companies or institutions where foreigners or PRs hold more than 50% of voting rights
What is a Foreign Company?
As defined by Malaysia’s National Land Code and Companies Act 2016, a foreign company includes:
- Any business, corporation, or organization incorporated outside Malaysia
- Any foreign association or society that can own property or take legal action in its home country but does not have a head office in Malaysia
- A Malaysian-registered company where 50% or more of its shares are owned by foreigners or a foreign company
- A Malaysian-registered company that is majority-owned by another foreign company
This classification determines who is eligible to buy land in Malaysia and under what conditions.
Understanding Malaysia’s Property Market Regulations
Foreign property ownership in Malaysia is permitted in specific states, as determined by the local government. Transactions in these areas must comply with the National Land Code (Revised 2020) (Act 828), often referred to as the NLC.
While the rules vary across Peninsular Malaysia, Sabah, and Sarawak, foreigners can purchase agriculture, residential, commercial, and industrial lands, subject to certain restrictions. Foreigners cannot purchase the following:
- Malay Reserved Land
- Low-cost and medium-cost residential units
- Properties allocated to Bumiputera groups
- Indigenous ownership properties
In some states, such as Selangor, additional restrictions apply. For example, foreigners may face limitations on agricultural land purchases or need to participate in auctions to acquire properties.
Key Requirements and Limitations
Now that you qualify as a foreigner under Malaysian law, you’re ready to explore property ownership in Malaysia.
Minimum Purchase Price Requirement
Under government regulations, foreigners must adhere to a minimum purchase price set by state authorities. Each state has its own rules, regulations, and minimum threshold for purchasing different types of properties, including:
- Industrial land
- Agricultural land
- Commercial land
- Residential property
The information below outlines the property types and their respective minimum purchase price thresholds in each state as of 2024. Before making a purchase, it is strongly recommended to check the latest state-specific requirements to ensure compliance with local property laws.
1) Minimum Threshold of Industrial Land in Each State
| States | Minimum Threshold | Additional Off-Limits Properties / Conditions according to each State Authority |
|---|---|---|
| Perlis | RM500,000 or above | N/A |
| Kedah |
|
|
| Penang (Island) |
|
|
| Penang (Island) |
|
|
| Penang (Mainland Seberang Perai) |
|
|
| Penang (Mainland Seberang Perai) |
|
|
| Perak (Zone 1: Ipoh) |
|
|
| Perak (Zone 2: Manjung, Taiping, Teluk Intan, Tanjong Malim, Kampar, Batu Gajah & Kuala Kangsar ) |
|
|
| Perak (Zone 3: Kerian, Perak Tengah, Tapah, Pengkalan Hulu, Gerik, Lenggong & Selama ) |
|
|
| Selangor (Zone 1: Petaling, Gombak, Hulu Langat, Sepang, Klang) |
|
|
| Selangor (Zone 2: Kuala Selangor, Kuala Langat) |
|
|
| Selangor (Zone 3: Hulu Selangor, Sabak Bernam) |
|
|
| Wilayah Persekutuan Kuala Lumpur, Putrajaya & Labuan |
|
|
| Negeri Sembilan |
|
|
| Melaka |
|
|
| Johor |
|
|
| Pahang |
|
|
| Terengganu |
| N/A |
| Kelantan |
| N/A |
| Sabah |
| N/A |
| Sarawak |
| N/A |
2) Minimum Threshold of Agriculture Land in Each State
| States | Minimum Threshold | Additional Off-Limits Properties / Conditions according to each State Authority |
|---|---|---|
| Perlis |
| NA |
| Kedah |
|
|
| Penang (Island) |
|
|
| Penang (Mainland Seberang Perai) |
|
|
| Perak (Zone 1: Ipoh) |
|
|
| Perak (Zone 2: Manjung, Taiping, Teluk Intan, Tanjong Malim, Kampar, Batu Gajah & Kuala Kangsar ) |
|
|
| Perak (Zone 3: Kerian, Perak Tengah, Tapah, Pengkalan Hulu, Gerik, Lenggong & Selama ) |
|
|
| Selangor (Zone 1: Petaling, Gombak, Hulu Langat, Sepang, Klang) |
|
|
| Selangor (Zone 2: Kuala Selangor, Kuala Langat) |
|
|
| Selangor (Zone 3: Hulu Selangor, Sabak Bernam) |
|
|
| Wilayah Persekutuan Kuala Lumpur, Putrajaya & Labuan |
|
|
| Negeri Sembilan |
|
|
| Melaka |
|
|
| Johor |
|
|
| Pahang |
|
|
| Terengganu |
| N/A |
| Kelantan |
| N/A |
| Sabah |
| N/A |
| Sarawak |
| N/A |
3) Minimum Threshold of Commercial Land in Each State
| States | Minimum Threshold | Additional Off-Limits Properties / Conditions according to each State Authority |
|---|---|---|
| Perlis | RM500,000 or above | N/A |
| Kedah |
|
|
| Penang (Island) |
|
|
| Penang (Island) |
|
|
| Penang (Mainland Seberang Perai) |
|
|
| Penang (Mainland Seberang Perai) |
|
|
| Perak (Zone 1: Ipoh) |
|
|
| Perak (Zone 2: Manjung, Taiping, Teluk Intan, Tanjong Malim, Kampar, Batu Gajah & Kuala Kangsar ) |
|
|
| Perak (Zone 3: Kerian, Perak Tengah, Tapah, Pengkalan Hulu, Gerik, Lenggong & Selama ) |
|
|
| Selangor (Zone 1: Petaling, Gombak, Hulu Langat, Sepang, Klang) |
|
|
| Selangor (Zone 2: Kuala Selangor, Kuala Langat) |
|
|
| Selangor (Zone 3: Hulu Selangor, Sabak Bernam) |
|
|
| Wilayah Persekutuan Kuala Lumpur, Putrajaya & Labuan |
|
|
| Negeri Sembilan |
|
|
| Melaka |
|
|
| Johor |
|
|
| Pahang |
|
|
| Terengganu |
| N/A |
| Kelantan |
| N/A |
| Sabah |
| N/A |
| Sarawak |
| N/A |
4) Minimum Threshold of Residential Land in Each State
| States | Minimum Threshold | Additional Off-Limits Properties / Conditions according to each State Authority |
|---|---|---|
| Perlis | RM500,000 or above | N/A |
| Kedah |
|
|
| Penang (Island) |
|
|
| Penang (Island) |
|
|
| Penang (Mainland Seberang Perai) |
|
|
| Penang (Mainland Seberang Perai) |
|
|
| Perak (Zone 1: Ipoh) |
|
|
| Perak (Zone 2: Manjung, Taiping, Teluk Intan, Tanjong Malim, Kampar, Batu Gajah & Kuala Kangsar ) |
|
|
| Perak (Zone 3: Kerian, Perak Tengah, Tapah, Pengkalan Hulu, Gerik, Lenggong & Selama ) |
|
|
| Selangor (Zone 1: Petaling, Gombak, Hulu Langat, Sepang, Klang) |
|
|
| Selangor (Zone 2: Kuala Selangor, Kuala Langat) |
|
|
| Selangor (Zone 3: Hulu Selangor, Sabak Bernam) |
|
|
| Wilayah Persekutuan Kuala Lumpur, Putrajaya & Labuan |
|
|
| Negeri Sembilan |
|
|
| Melaka |
|
|
| Johor |
|
|
| Pahang |
|
|
| Terengganu |
| N/A |
| Kelantan |
| N/A |
| Sabah |
| N/A |
| Sarawak |
| N/A |
Conclusion:
Reference:
1. Malaysian Bar Council. (2024). Circular No. 444/2024: Restrictions in respect of non-citizens and foreign companies pursuant to Part 33A of the National Land Code.




