Foreign law firms have to show that they have the relevant legal expertise and experience in the permitted practice areas (i.e. international law), as well as submit their business plan demonstrating their proposed contribution to growth and development of the Malaysian legal services market. In the case of a foreign law firm applying to be licensed as a QFLF, it will have to prove in addition that it has the relevant expertise and experience in international Islamic finance and would be in a position to support and contribute to the Government's MIFC initiative. For the purposes of the OECD FDIRRI, this is considered as a discriminatory screening policy.
"Part IVa INTERNATIONAL PARTNERSHIPS, QUALIFIED FOREIGN LAW FIRMS AND REGISTRATION OF FOREIGN LAWYERS [...]
Selection Committee
40c. (1) A Selection Committee is established under this Part to make recommendations to the Bar Council for the granting of licence for international partnerships and qualified foreign law firms and to Malaysian law firms to employ foreign lawyers and the registration of foreign lawyers to practise in the permitted practice areas.
[...]
International partnership
40f. (1) A foreign law firm and a Malaysian law firm may apply jointly to the Bar Council for an international partnership licence if they satisfy such conditions as the Bar Council may think fit to impose in any particular case. [...]
(2) A foreign law firm shall not be part of more than one international partnership in Malaysia at any one time.
(3) Upon receiving the application, the Bar Council shall refer such application to the Selection Committee for consideration and recommendation.
(4) The Bar Council shall, upon the recommendation of the Selection Committee, grant an application made under subsection (1) on such conditions as the Bar Council may think fit to impose in any particular case or refuse the application
(6) The Bar Council may, by notice in writing— (a) impose any new or additional conditions on the licence; or (b) vary or revoke any of the conditions imposed on the licence.
(7) The Bar Council may renew a licence granted under this section for such period and upon such conditions as the Bar Council may specify.
(8) An international partnership is entitled to— (a) practise in the permitted practice areas in accordance with such conditions as may be prescribed; (b) bill its clients as a single law firm; and (c) recover costs and retain payments in respect of such practice.
(9) The permissible equity ownership and voting rights of the foreign law firm in the international partnership shall be as determined by the Selection Committee from time to time.
Qualified foreign law firm
40g. (1) A foreign law firm may apply for a qualified foreign law firm licence if it satisfies such conditions as the Bar Council may think fit to impose in any particular case. [...]
(6) The Bar Council may renew a licence granted under this section for such period and upon such conditions as the Bar Council may specify.
(7) A qualified foreign law firm is entitled to practise in the permitted practice areas in accordance with such conditions as may be determined by the Bar Council.
(8) A Malaysian lawyer employed in a qualified foreign law firm shall be disqualified from obtaining a practising certificate under Part III.
[...]
Suspension or revocation of licence
40i. (1) The Bar Council may, by notice in writing, suspend or revoke the licence granted under section 40f, 40g or 40h if the Bar Council is satisfied that there is sufficient reason for doing so. [...] 
(b) there is any change in respect of any information regarding the foreign law firm which was submitted for the purposes of obtaining the international partnership licence or the qualified foreign law firm licence including but not limited to—[...] (ii) a merger of the international partnership with any other firm or body corporate; or (iii) a change of up to one-half (½) in the number of the partners in any international partnership; [...]
(4) A licence shall not be suspended or revoked without the international partnership or qualified foreign law firm being given a reasonable opportunity to make representations to the Bar Council."(Legal Profession Act 1976, as amended by Legal Profession (Amendment) Act 2012 [Act A1444], Part IVa, Art. 40c, 40f-g, 40i)
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"Permitted Practice Areas
[...] The permitted practice areas in respect of an international partnership, a qualified foreign law firm (QFLF) and a foreign lawyer employed by a Malasian law firm shall be work regulated by Malaysian law and at least one other national law, or a transaction regulated solely by any law other than Malaysian law provided that in the case of a QFLF, such aspect of work regulated by Malaysian law shall be undertaken with one or more advocates and solicitors of the High Court of Malaya holding a valid Practising Certificate.[...]
(3) Nothing in these Rules shall authorise an international partnership, a QFLF or a foreign lawyer employed by a Malasian law firm to provide any legal services in the following areas--- (a) constitutional and administrative law; (b) conveyancing; (c) criminal law; (d) family law; (e) succession law, including wills, intestacy, probate and administration; (f) trust law, where the settlor is an individual, and the law relating to charities and foundations, whether the settlor is an individual or a corporation; (g) retail banking, including corporate or commercial loans to small and medium enterprises; (h) registration of patents and trademarks; (i) appearing or pleading in any court of justice in Malaysia, representing a client in any proceedings instituted in such a court or giving advice, whether or not the main purpose of which is to advise the client on the conduct of such proceedings, except where such appearance, pleading, representation or advice is otherwise permitted under the Act or these Rules or any other written law; and (j) appearing in any hearing before a quasi-judicial or regulatory body, authority or tribunal in Malaysia, except where such appearance is otherwise permitted under the Act or these Rules or any other written law.
[...]
International Partnership Licence
3 (3) Subject to the recommendation of the Selection Committee, no licence shall be granted unless the foreign law firm and the Malaysian law firm both satisfy the following conditions: [...] (g) the equity ownership and voting rights of the Malaysian law firm and the foreign law firm in the International Partnership shall be as determined by the Selection Committee; [...]
(j) the foreign law firm and the Malaysian law firm have jointly submitted a plan satisfactory to the Bar Council describing the business plan of the international partnership which shall include but not be limited to any plan for transfer of technology and expertise in the appropriate permitted practice areas and their proposed contribution to growth and development of the Malaysian legal services market, as well the implementation of the plan and have undertaken that no material modification shall be made to the plan without the prior written approval of the Bar Council; 
[...]
Qualified Foreign Law Firm Licence
4 (2) Subject to the recommendation of the Selection Committee, no licence shall be granted unless the foreign law firm and the Malaysian law firm both satisfy the following conditions: [...] (i) the foreign law firm and the Malaysian law firm have jointly submitted a plan satisfactory to the Bar Council describing the business plan of the international partnership which shall include but not be limited to any plan for transfer of technology and expertise in the appropriate permitted practice areas and their proposed contribution to growth and development of the Malaysian legal services market, as well the implementation of the plan and have undertaken that no material modification shall be made to the plan without the prior written approval of the Bar Council;[...]" (Legal Profession (Licensing of International Partnerships and Qualified Foreign Law Firms and Registration of Foreign Lawyers) Rules 2014 ("the "Rules"))
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"Guidance Note For Applicants - Qualified Foreign Law Firm [...]
(1) A foreign law firm licensed as a QFLF will not require a Malaysian law firm as a partner. Liberalisation will begin with the initial offering of up to five QFLF licences, as this avenue has been created to support the Malaysian Government's Malaysian International Islamic Finance Centre ("MIFC") initiative as announced by the Prime Minister in his policy speech on 22 April 2009. QFLF licences will therefore only be granted to FLFs that have proven expertise in International Islamic Finance, and which would be able to support and contribute to the MIFC initiative.[...]."(Qualified Foreign Law Firm - Guidance Note for Applicants, Malaysian Bar Council) 
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Guidance Note For Applicants - Qualified Foreign Law Firm [...]
(7) The MLF should not have less than 60%, and the FLF no more than 40%, of the equity and voting rights in the IP. The total number of foreign lawyers in the IP shall not be less than 40% of the total number of lawyers in the IP, unless otherwise determined by the Selection Committee.[...]."(International Partnership - Guidance Note for Applicants,  Malaysian Bar Council.)
Legal Profession Act 1976, as amended by Legal Profession (Amendment) Act 2012 [Act A1444], Legal Profession (Amendment) Act 2012 (Amendment) Act 2013 [Act A1455] and Legal Profession (Amendment) Act 2013 [Act A1456], Part IVa, Art. 40a-40o.
Legal Profession (Licensing of International Partnerships and Qualified Foreign Law Firms and Registration of Foreign Lawyers) Rules 2014 ("the "Rules").
Qualified Foreign Law Firm - Guidance Note for Applicants, Malaysian Bar Council.
International Partnership - Guidance Note for Applicants,  Malaysian Bar Council.
[<a href="http://www.malaysianbar.org.my/legal_profession_act_1976/">Act</a>],[<a href="http://www.malaysianbar.org.my/index.php?option=com_docman&task=doc_download&gid=4585&Itemid=332">Act</a>],[<a href="http://www.federalgazette.agc.gov.my/outputp/pua_20140602_P.U.%20(A)%20148-KAEDAH-KAEDAH%20LPA%20-%20DISEMAK%2020%205%202014%20-BM%20BI%20-%20final.pdf">Rules</a>],[<a href="http://www.malaysianbar.org.my/index.php?option=com_docman&task=doc_details&gid=4589">Guidance</a>],[<a href="http://www.malaysianbar.org.my/index.php?option=com_docman&task=doc_download&gid=4588">Guidance</a>]