Business Of Investment Holding Companies in Malaysia

Business of investment holding companies in Malaysia is regulated by the Malaysian Investment Development Authority (MIDA). MIDA is responsible for the promotion of Malaysian investments and provides incentives for companies to set up operations in the country. Investment holding companies are required to have a minimum paid-up capital of RM2 million and must be registered with MIDA.

The main activities of investment holding companies are to hold shares in other companies and to provide management and technical services to their subsidiaries. They are not allowed to carry out any business activities other than those related to their holdings. Investment holding companies are required to maintain a minimum shareholding of 30% in their subsidiaries.

MIDA provides a number of incentives for investment holding companies, including tax exemptions and preferential treatment in government contracts. These incentives are aimed at encouraging companies to set up operations in Malaysia and to contribute to the country's economic development.