TPP's Annex 1 on Non-Conforming Measures lists all existing non-conforming measure maintained by Malaysia before the agreement entered into force. In such a list, it is indicated that foreign equity is limited up to 30% in the manufacture of batik fabric and apparel of batik. For the purposes of the OECD FDIRRI, although no evidence of such measure was found in the referred underlying legislation and/or policy document, the mentioned restriction is presumed to exist/apply.
"ANNEX I - SCHEDULE OF MALAYSIA
Sector: Manufacturing
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: Industrial Co-ordination Act 1975 [Act 156]; Administrative Guidelines
Description: Investment - 1. Foreign equity is limited up to 49 per cent for investment in the manufacture or assembly of motor vehicles. However, no foreign equity restrictions are imposed on the following categories: (a) luxury passenger vehicles with engine capacity of 1,800 c.c. and above and on the road price not less than RM150,000; (b) pick-up trucks and commercial vehicles; (c) hybrid and electric vehicles; and (d) motorcycles with engine capacity of 200 c.c. and above.
2. Foreign equity is limited up to 30 per cent for the manufacture of batik fabric and apparel of batik."(ANNEX I - SCHEDULE OF MALAYSIA, Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP))
ANNEX I - SCHEDULE OF MALAYSIA, Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
[<a href="https://fta.miti.gov.my/miti-fta/resources/Text%20of%20TPPA%20(160516)/Annex_I._Malaysia_.pdf">Annex</a>]