Foreign investment in inbound tour operating services and travel agency (ticketing) services, as well as food catering and restaurants outside hotel premises is allowed subject to discriminatory minimum capital requirements and local content requirements [not considered in the OECD FDIRRI in relation to food service activities].
"2. TOUR OPERATING/TRAVEL AGENCY BUSINESS (TOBTAB) 
The three (3) types of businesses licensed are as follows: 
(a)  Tour operating business (Inbound & Outbound): 'Tour operating business' means any business of providing all or any of the following services: (i) Arranging for sale or commission any transportation, accommodation, tour services or any other incidental services for tourists within or outside Malaysia. (ii) Organising or conducting for sale or commission inbound or outbound tours. (iii) Providing conveyances for hire to tourists. (iv) Any other service incidental to any of the activities enumerated above.
(b) 'Travel agency business' (Ticketing) means any business of providing all or any of the following services: (i) Selling, arranging or making available for commission tickets entitling a person to travel on any conveyance either by land, sea or air; (ii) Selling, arranging or making available for commission accommodation places within Malaysia or outside Malaysia; and (iii) any other services incidental to any of the activities enumerated above.
Applicants must be private limited companies incorporated under the Companies Act, 2016.
[...]
2.3 Equity Policy
- As of 2 September 2014, foreign equity	ownership is restricted to company (not individual)
- Companies with foreign	equity ownership are only allowed to apply for Inbound & Ticketing licenses
- Foreign company must be an established tour operating company in the respective country (endorsed by Tourism Malaysia Office/Malaysian Embassy/Malaysian High Commissioner)
- 100% foreign equity ownership is restricted to Inbound licence only.
GUIDELINES FOR EQUITY AND PAID-UP CAPITAL REQUIREMENTS FOR MALAYSIAN / FOREIGNER IN TOUR OPERATING AND TRAVEL AGENCY BUSINESS  (NEW GUIDELINES CAME INTO FORCE ON 2 SEPTEMBER 2014)
1. Type of licence: Inbound / Equity ownership: Foreign Company (ASEAN & Non-Asean) / Maximum shareholding: 100% / Location of premise: city/rural / Minimum paid-up capital: RM1,500,000
2. Type of licence: Inbound & Ticketing / Equity ownership: Foreign Company (ASEAN) / Maximum shareholding: 70% - Singapore/Cambodia only & 51% other ASEAN / Location of premise: city/rural / Minimum paid-up capital: RM1,000,000
3. Type of licence: Inbound & Ticketing / Equity ownership: Foreign Company (Non-ASEAN) / Maximum  shareholding: 30% / Location of premise: city/rural / Minimum paid-up capital: RM500,000
4. Type of licence: Outbound / Equity ownership: Foreign Company (ASEAN & Non-Asean) / Maximum shareholding: not allowed / Location of premise: not applicable / Minimum paid-up capital: not applicable
5. Type of licence: Inbound / Equity ownership: Citizen/Local Company / Maximum shareholding: 100% / Location of premise: city/rural / Minimum paid-up capital: RM200,000 / RM50,000
[...]
5. Type of licence:  Inbound & Ticketing  / Equity ownership: Citizen/Local Company / Maximum foreign shareholding: 100% / Location of premise: city/rural / Minimum paid-up capital: RM200,000 / RM150,000" [...]" (MIDA (2020), Malaysia: Investment in the Services Sectors - Booklet 9: Tourism and Travel Related Services).
--------------------------------
"5.0 ADMINISTRATIVE CONDITIONS
5.1  Approval by the Distributive Trade Committee of MDTCA must be obtained for any applications on foreign involvement in the distributive trade, including the following applications: a. acquisition of interest; b. mergers and / or takeovers by foreign participation; c. opening of new branches / outlets / chain stores; d. relocation of branches / outlets / chain stores; e. expansion of existing branches / outlets / chain stores; f. buying over / taking over of outlets of other operators; and g. purchase and sale of properties to operate distributive trade activities prior to obtaining the approval / license from local authorities and other agencies to operate distributive trade activities. [...]
5.4 All distributive trade companies with foreign involvement must adhere to the following recommendations: 
a. to appoint Bumiputera or Malay director/directors; 
b. to hire local (Malaysian) personnel at all levels particularly for the management positions and above; [...]
e. to encourage Bumiputera or Malay participation in the distributive trade sector; [...]
h. to encourage utilisation of local professional services which are available in Malaysia; 
[...]
9.0 SPECIALTY STORE
9.1 Definition
9.1.1 Specialty store means stores dealing with one main brand name/product/line of goods associated with one product in the following categories: 9.1.1.1  Exclusive food and beverage business; 9.1.1.2  Food/drink/tobacco 9.1.1.3  household/personal goods; 9.1.1.4  exclusive furniture; 9.1.1.5  household appliances; 9.1.1.6  electrical appliances; 9.1.1.7  healthcare products; 9.1.1.8  optical goods; 9.1.1.9  footwear; 9.1.1.10 clothing and apparel; 9.1.1.11 sports goods; 9.1.1.12 books; 9.1.1.13 jewelry; 9.1.1.14 electronic goods; 9.1.1.15 motorcycles / motor vehicles; 9.1.1.16 small machinery (e.g. industrial, agricultural equipment for     small users); 9.1.1.17 pharmacy, serviced by a pharmacist at each outlet (retailing  only drugs, health and beauty care goods); or 9.1.1.18 others. 
9.1.2 The criteria [for approval] of specialty store as categorized under paragraph 9.1.1 are as follows:  9.1.2.1 contribution to the socio-economic development in Malaysia; 9.1.2.2 generate substantial foreign direct investment; 9.1.2.3 absence of local players in proposed formats; 9.1.2.4 create employment opportunities; 9.1.2.5 transfer of technology/skills to locals; and 9.1.2.6 unique/ exclusive nature of business.
9.2 Incorporation and Capital Conditions: Any foreign involvement in specialty store is recommended to be in compliance with the following:
9.2.1 Local Incorporation: All specialty store businesses with foreign equity must be incorporated locally under the Companies Act 2016 [Act 777]. This condition also applies to existing businesses operating under foreign branches of specialty store.
9.2.2 Minimum Capital Requirement: The capital investment in terms of a company's shareholders funds is RM1 million at the minimum, which includes paid-up capital. 
[...]
12.0 VARIOUS OTHER DISTRIBUTION FORMATS  12.1 Definition 12.1.1 Various other distribution formats mean other types of distributive formats and unregulated sector, including e-commerce.  12.1.2 The criteria of various other distribution formats are as follows: a. contribution to the socio-economic development in Malaysia; b. generate substantial foreign direct investment; c. absence of local players in proposed formats; d. create employment opportunities; e. transfer of technology / skills to locals; and f. unique/ exclusive nature of business. 12.2 Incorporation and Capital Conditions 12.2.1 Any foreign involvement in various other distribution formats are recommended to be in compliance with the following conditions:  12.2.1.1 Local Incorporation All various other distribution format businesses with foreign equity must be incorporated locally under the Companies Act 2016 [Act 777]. This condition applies also to existing businesses operating under foreign branches.  12.2.1.2 Minimum Capital Requirement  The minimum capital investment in terms of a company's shareholders funds, which include paid-up capital is RM1 million. 12.3 Operational Conditions [...]  12.4 Feasibility and impact studies on existing local retailers and residents are to be carried out if the sales floor area is more than 5,000 square meters. 
[...]
15.0 FOREIGN INVOLVEMENT
15.1 The involvement of foreign business operators is subject and limited to the distributive trade sector as mentioned above. Sectors which are not applicable to foreign business operators include the following (the list of which is not exhaustive):
a. supermarket / mini market; b. provision shop / general vendor; c. news agent and miscellaneous goods store; d. medical hall (inclined towards traditional alternative medicines plus general dry foodstuff); e. fuel station; f. permanent wet market store; g. permanent pavement store; h. National Strategic Interest; and i. Non-exclusive textile, food and beverage, jewellery shops. 
[...]
18.0 GLOSSARY [...]
18.2  Definition of "Bumiputera" and "Malay": a) "Bumiputera" must have the same meaning as assigned to it in Article 161A of the Federal Constitution; b) "Malay" must have the same meaning as assigned to it in Article 160 of the Federal Constitution; and  c) the expression "Bumiputera" or "Malay"  includes a company, an association or a body of persons whether corporate or unincorporate, a majority part of whose capital is owned by and the management and employees are made up of Malays or Bumiputera. [...]
18.4  Foreign participation / Foreign Business Operator Foreign participation or foreign business operator means any interest, associated group of interests or parties acting in concert which comprises the following: i. individual (including permanent resident) who is not a Malaysian citizen;  ii. foreign company or institutions; or iii. local company or local institution whereby the parties as stated in item (i) and/or (ii) hold more than 50 percent of the voting rights in the company or institution.[...]
18.12 Small and Medium Enterprises (SME) The criteria to determine definition of small and medium enterprises are sales turnover and number of fulltime employees as well as the following:   i. for the manufacturing sector, SMEs are defined as firms with sales turnover not exceeding RM50 million or whereby the number of fulltime employees does not exceed 200 employees. ii. for the services and other sectors, SMEs are defined as firms with sales turnover not exceeding RM20 million or the number of fulltime employees does not exceed 75 employees. [...]" (Guidelines on Foreign Participation in the Distributive Trade Services Malaysia, 2020)
---------------------------------
"4. SPECIALTY STORE 
Store dealing with one main brand name/product/line of goods associated with one (1) product. They may specialise in: - Food catering and restaurant services outside hotel premises; -Food-drink-tobacco (e.g. food and beverage) [...]
Specialty store may be allowed to operate in the above categories  if it fulfils the following criteria: (a) Contribution to the socio-economic development of Malaysia; (b) Generate substantial foreign direct investment; (c) Absence of local players in proposed formats; (d) Create employment opportunities; (e) Transfer of technology/skills; and (f) Unique/exclusive nature of business.
4.1 Licensing and Registration 
Any foreign involvement in these activities is subject to the following rules and conditions:
(i) Local Incorporation: All specialty store businesses with foreign equity must be incorporated locally under the  Companies Act, 2016. This condition also applies to existing businesses operating under foreign branches. 
(ii) Minimum Capital Requirement: The minimum capital investment in terms of shareholders' funds, which include paid-up capital and reserves is RM1 million for each specialty outlet, to be reviewed every three (3) years. 
4.2 Equity Policy
To increase local participation in business, the Government encourages joint-ventures between Malaysian and foreign investors. 
The Government had announced on 7 October 2011 that specialty stores would be one of the 17 services sub-sectors that would be liberalised. [...]
4.4 Environment and Public Interest Conditions
Impact study on existing local retailers should be carried out if a specialty store is to be operational in a stand-alone building or if the business floor area is not less than 5,000 square meters.
[...]
5. OTHER DISTRIBUTIVE TRADE ACTIVITIES
Other types of businesses  not specified will be considered  on the merit of each case with particular reference to their contribution to the socio-economic development of Malaysia. 
Various other distribution formats may be allowed to operate in the above categories  if they fulfil the following criteria: (a) Contribution to the socio-economic development of Malaysia; (b) Generate substantial foreign direct investment; (c) Absence of local players in proposed formats; (d) Create employment opportunities; (e)	Transfer	of technology/skills; and (f) Unique/exclusive nature of business. 
5.1 Licensing and Registration
 Any foreign involvement in these activities is subject to the following rules and conditions: 
(i) Local Incorporation: All various other distribution businesses with foreign equity must be incorporated locally under the Companies Act, 2016. This condition applies also to existing businesses operating under foreign branches. 
(ii) Minimum Capital Requirement The minimum capital investment in terms of shareholders' funds, which include paid-up capital and reserves is RM1 million for each outlet. 
5.2 Equity Policy Foreign participation is allowed in other distributive trade activities except the following: [...] Textile, restaurant (non-exclusive), bistro, jewellery shops [...]
5.4 Environment and Public Interest Conditions
Impact study on existing local retailers should be carried out if the business is to be operational in a stand-alone building or if the business floor area is 5,000 square meters.[...]" (MIDA (2020), Malaysia: Investment in the Services Sectors - Booklet 8: Distributive Trade Services)
MIDA (2020), Malaysia: Investment in the Services Sectors - Booklet 9: Tourism and Travel Related Services
Guidelines on Foreign Participation in the Distributive Trade Services Malaysia, 2020
MIDA (2020), Malaysia: Investment in the Services Sectors - Booklet 8: Distributive Trade Services
[<a href="https://www.mida.gov.my/wp-content/uploads/2020/07/20200131123840_BOOKLET-9-TOURISM-AND-TRAVEL-RELATED-SERVICES.pdf">Booklet</a>],[<a href="https://www.kpdnhep.gov.my/images/FINAL_GP_2020.pdf">Guideline</a>],[<a href="https://www.mida.gov.my/wp-content/uploads/2020/07/20191220163621_BOOKLET-8-DISTRIBUTIVE-TRADE-SERVICES.pdf">Booklet</a>]