Invesment Holding Companies in Malaysia

An investment holding company is a company that provides financial and managerial support to its subsidiary companies. The subsidiaries are usually companies in which the investment holding company has a controlling interest. Investment holding companies are common in Malaysia, where they are often used as a way to diversify a company's business interests.

There are several benefits to using an investment holding company structure. One is that it can help to reduce a company's tax liability. Another is that it can provide a higher level of control over the subsidiary companies. Finally, it can also help to create a more efficient management structure.

There are some drawbacks to investment holding companies as well. One is that they can be complex and expensive to set up. Another is that they can make it more difficult for a company to raise capital. Finally, they can also create conflicts of interest between the parent company and the subsidiary companies.

Overall, investment holding companies can be a helpful way for companies to diversify their business interests and to create a more efficient management structure. However, they should be carefully considered before being implemented, as they can also have some significant drawbacks.