Local incorporation is required for investment in all regulated activities under the Capital Markets and Services Act 2007, except financial planning: i.e. dealing in securities; dealing in derivatives; clearing for securities or derivatives; fund management (inclduing corporations undertaking fund management activity in relation to venture capital or private equity funds); dealing in private retirement schemes; advising on corporate finance; and investment advice.  And is also required for financial intermediation services under the Financial Services Act 2013, except for convetional reinsurance companies, and international islamic banks, insurer and reinsurer.
"Chapter 1  - INTRODUCTION
1.01 The Capital Markets and Services Act 2007 (CMSA) repeals the Securities Industry Act 1983 (SIA) and the Futures Industry Act 1993 (FIA). The CMSA, which takes effect on 28 September 2007, introduces a single licensing regime for capital market intermediaries. Under this regime, a capital market intermediary will only need one licence to carry on the business in any one or more regulated activities. This will mean less cost and paperwork for capital market intermediaries that carry on more than one regulated activity.
[...]
2.02 What are regulated activities?  
(1) There are eight types of regulated activities under the CMSA. The list of regulated activities is set out in Schedule 2 of the CMSA. They are– - dealing in securities; - dealing in derivatives; - clearing for securities or derivatives; - fund management; - dealing in private retirement schemes; - advising on corporate finance; - investment advice; and - financial planning.  
(2) The licence issued under the CMSA will set out the specific regulated activities that you can conduct. 
[...]
Chapter 4 -  LICENSING CRITERIA [...]
In authorising any person wishing to undertake capital market activities6, the SC will not grant authorisation unless the application is in the best interest of Malaysia. In determining the best interest of Malaysia, the SC will give regard to any one or more of the following: [...] (e) The degree and significance of participation of Malaysians in the capital market. 
[...]
What are the requirements for a CMSL? 
4.02 Organisational requirements
Incorporation
(1) If you want to carry on any of the following regulated activities, you must be a company incorporated in Malaysia: - Dealing in securities;  - Dealing in derivatives; - Clearing for securities or derivatives; - Fund management; - Dealing in private retirement schemes; - Advising on corporate finance; and - Investment advice. 
(2) However, if you want to carry on the regulated activity of financial planning, you may do so either as a company, sole proprietorship or partnership. If you are a sole proprietor or in a partnership, you will be granted a CMSL but you will not be allowed to have any licensed representative acting on your behalf. 
[...]
4.03 Shareholder composition
(1) Except for the shareholding requirement for investment banks which is a minimum of 30% local shareholding, there are no other specific shareholding requirements for the other regulated activities.  [...]
(3) If you are a stockbroking company that is not an investment bank– (a) a person who wishes to acquire more than 51% of the total paid-up capital of a PO must be a company or corporation with shareholders' funds of not less than RM100 million; and (b) no individual other than a Malaysian citizen, may hold up to 10% of the total paid-up capital of a stockbroking company. The aggregate total participation of individuals in the share capital of the stockbroking company shall not be more than 49% of the total paidup capital. [...]" (Securities Commission (2023), Licensing Handbook, April 14)
------------------------------
"Chapter 1 - INTRODUCTION
1.01 These Guidelines on the Registration of Venture Capital and Private Equity Corporations and Management Corporations (Guidelines) are issued by the Securities Commission Malaysia (SC) under section 377 of the Capital Markets and Services Act 2007 (CMSA) read together with section 76 of the CMSA. 
1.02 These Guidelines set out the requirements for the registration of and ongoing requirements for corporations undertaking fund management activity in relation to venture capital or private equity funds. [...]" (Securities Commission (2022),GUIDELINES ON THE REGISTRATION OF VENTURE CAPITAL AND PRIVATE EQUITY CORPORATIONS AND MANAGEMENT CORPORATIONS, November 28)
------------------------------
"9. Other legal requirements  [...]
Form of Establishment 
9.4 Subject to paragraph 9.5, all licensed persons are required to be public companies incorporated in Malaysia under the Companies Act 20165. 
9.5 A professional reinsurer, a professional retakaful operator, a licensed international Islamic bank, and a licensed international takaful operator may be established as a branch of a foreign institution6. [...]" (Bank Negara Malaysia (2019), Application Procedures for New Licences under Financial Services Act 2013 and  Islamic Financial Services Act 2013, December 27)
------------------------------
"PART C: OPERATIONAL REQUIREMENTS 
12. Local Incorporation
S 12.1 A MSB shall be a company incorporated under the Companies Act 2016 [Act 777]. [...]"(Bank Negara Malaysia (2022), Governance, Risk Management, and Operations for Money Services Business (MSB), June 30)
Securities Commission (2023), Licensing Handbook, April 14
Securities Commission (2022),GUIDELINES ON THE REGISTRATION OF VENTURE CAPITAL AND PRIVATE EQUITY CORPORATIONS AND MANAGEMENT CORPORATIONS, November 28
Bank Negara Malaysia (2019), Application Procedures for New Licences under Financial Services Act 2013 and  Islamic Financial Services Act 2013, December 27
Bank Negara Malaysia (2022), Governance, Risk Management, and Operations for Money Services Business (MSB), June 30
[<a href="https://www.sc.com.my/api/documentms/download.ashx?id=2bb1b664-aa03-425e-9472-9cc5b1558ed1">Handbook</a>],[<a href="https://www.sc.com.my/api/documentms/download.ashx?id=ab596210-e6e3-4c47-8963-8aac7c11fa50">Guidelines</a>],[<a href="https://www.bnm.gov.my/documents/20124/938039/PD+030-4_Licensing+Guide_FDI_FSA-IFSA.pdf/3ddc8322-3358-a22c-b751-2d4ab1e33e96?t=1592251348473">Procedures</a>],[<a href="https://www.bnm.gov.my/documents/20124/964944/PD_GRMO_MSB.pdf">Guidelines</a>]