FOREIGN direct investment (FDI) into Malaysia would be boosted by a revamp of the Companies Act, 1965, said the Malaysian Association of the Institute of Chartered Secretaries and Administrators (Maicsa) president Paul W Chan.
Chan, who was representing Maicsa at a meeting scheduled yesterday with the Companies Commission of Malaysia (CCM) and Securities Commission to begin work on the a new Companies Act, said that based on the concept paper given to him, the new framework for the law would make the country a very attractive centre for investment and more competitive with its neighbours.
According to Chan, a new Companies Act represented the right step forward as the country faced increasing global competition in attracting FDI. In this respect, he hoped to see a simplified, less bureaucratic and more market-oriented law emerge from the revamp.
Chan said the implications of the change would be significant as it would affect the over 600,000 private limited companies in Malaysia.
The revamp of the Companies Act is believed to be a priority project for the CCM in light of the many developments that require Malaysian firms to be globally competitive, as well as changes in the local corporate sector such as an increased emphasis on corporate governance.
The new law is expected to eventually make it easier to incorporate companies and cheaper to maintain them.
Domestic Trade and Consumer Affairs Minister Tan Sri Muhyiddin Yassin had earlier announced that a wholesale review of the Companies Act, 1965 was being carried out to develop a new law which was more market-driven, supportive of entrepreneurship and aligned to international best practices.