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How to Set Up a Data Centre in Malaysia: A Guide for Foreign Investors

Setting up a data centre in Malaysia offers numerous advantages, including access to advanced infrastructure, strategic geographic location, and a business-friendly environment. If you're a foreign investor looking to enter the Malaysian market, here’s a step-by-step guide to help you navigate the process.Table of contentsStep 1: Register and Incorporate a CompanyStep 2: Register with the Inland Revenue Board of Malaysia (LHDN)Step 3: Apply for Licenses and ApprovalsStep 4: Sector-Specific Authorisations and ApprovalsStep 5: Choose the Right LocationStep 6: Leverage Malaysia’s Incentives for Foreign InvestorsStep 1: Register and Incorporate a CompanyBefore establishing a data centre in Malaysia, you must first register and incorporate your business entity. This can be done through the Suruhanjaya Syarikat Malaysia (SSM), or the Company Commission of Malaysia (CCM), via their online platform. There are several business structures to choose from, including:Sole ProprietorshipPartnership or Limited Liability Partnership (LLP)Private or Public Limited Company (Sdn. Bhd. or Berhad)Companies Limited by GuaranteeFor data centre projects, incorporating as a Private Limited Company (Sdn. Bhd.) or a Public Limited Company (Berhad) is highly recommended. These structures provide limited liability to shareholders and are recognized as separate legal entities, making them ideal for large-scale operations like data centres.Step 2: Register with the Inland Revenue Board of Malaysia (LHDN)Once your company is incorporated, the next essential step is to register with the Inland Revenue Board of Malaysia (LHDN). This registration is crucial for tax compliance, including obtaining a Sales Tax license if applicable.Registering as an Sdn. Bhd. or Berhad offers tax advantages and shields investors from personal liability, which makes it a preferred structure for large-scale, capital-intensive projects such as data centres.Step 3: Apply for Licenses and ApprovalsMalaysia’s regulatory environment requires businesses to acquire specific licenses and approvals, which can be obtained through the Malaysian government’s licensing portal (Pihak Berkuasa Melesen, PBM). Depending on the location of your data centre, you may need to secure licenses from either the federal government or the respective state authorities. These licenses are legally binding documents that validate the operations of your data centre in that particular region.There are three main categories of business licenses in Malaysia:General Licenses – Required for most types of businesses to operate legally.Industry- or Sector-Specific Licenses – Tailored for specific industries like IT, telecommunications, and more.Activity-Specific Licenses – Related to specific operations, such as health and safety, environmental protection, etc.Step 4: Sector-Specific Authorisations and ApprovalsGiven the nature of data centre operations, you may need to secure additional sector-specific licenses depending on your activities. Some key areas where authorisations may be required include:Telecommunications Licensing: If your data centre involves networking services or communication solutions, you may need a telecommunications license.Occupational Health and Safety Approvals: Ensure your data centre complies with Malaysian health and safety regulations.Machinery and Building Permits: This includes approvals for building designs, fitness certificates for machinery, and compliance with structural safety standards.Environmental Certification: Pollution control and energy efficiency certifications may be necessary, depending on the environmental impact of your data centre’s operations.Step 5: Choose the Right LocationMalaysia offers a number of strategic locations for setting up data centres, including well-established technology hubs like Kuala Lumpur, Penang, Johor and Sarawak. These regions provide robust infrastructure, high-speed internet, and reliable power supply, all of which are critical for operating a data centre. Moreover, Malaysia’s stable political environment and growing economy make it an attractive destination for foreign investors.Step 6: Leverage Malaysia’s Incentives for Foreign InvestorsThe Malaysian government is actively encouraging foreign direct investment (FDI) in sectors such as technology and infrastructure, offering incentives like tax breaks, grants, and other financial support for foreign companies setting up data centres. Agencies such as MIDA (Malaysian Investment Development Authority) and MDEC (Malaysia Digital Economy Corporation) provide valuable resources and support services to help foreign investors navigate the regulatory and investment landscape.Source: MIDA, IndustrialMalaysia, MDEC, PBMThis article was prepared and contributed by Clement Sim PM.

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A Closer Look at the Sarawak Land Code: What You Need to Know

The Sarawak Land Code serves as the backbone of land management in Sarawak, Malaysia. Introduced during the Brooke administration and evolving through the years, this legal framework governs everything from land ownership and usage to Native Customary Rights (NCR). Whether you're a property owner, investor, or an indigenous community member, understanding this Land Code is essential for navigating the complexities of land matters in Sarawak.In this article, we will explore the key features of the Sarawak Land Code, its importance, and its implications for both local communities and investors.Table of contentsKey Land ClassificationsNative Customary Rights (NCR)Land Acquisition and CompensationResolving Land DisputesRecent Reforms and AmendmentsOngoing Challenges and the FutureLand Registration, Titles, and Transfer ProceduresConclusionThe Sarawak Land Code is a comprehensive legislative framework that governs land administration and management in the state of Sarawak, Malaysia. First enacted in 1958, the Land Code plays a crucial role in balancing development, customary land rights, and sustainable land use. Given the unique history and cultural diversity of Sarawak, the code also seeks to protect the land rights of indigenous communities, known as Natives, while facilitating economic growth and land utilization for commercial purposes.Key Land ClassificationsSarawak’s land is divided into various categories, each subject to specific rules and restrictions:Native Customary Rights Land (NCR): Refers to land traditionally occupied or cultivated by indigenous communities based on their customs. While it may not be formally titled, NCR land enjoys government recognition. Efforts have been made to survey and register such lands, but challenges around boundaries and recognition persist.State Land: Land owned by the Sarawak state government, which can be leased or granted to individuals or businesses for various purposes, including agriculture and development. Terms for these leases or grants are dictated by government regulations.Mixed Zone Land (MZL): This classification allows both natives and non-natives to own and transfer land, making it suitable for residential and commercial development. It’s a key area of interest for investors.Native Area Land (NAL): Specifically reserved for Sarawak natives, this land can only be owned by them. Sale or transfer of ownership to non-natives is either restricted or prohibited altogether.Native Customary Rights (NCR)One of the most crucial elements of the Sarawak Land Code is the recognition of Native Customary Rights (NCR). These rights relate to land that has been used or cultivated by indigenous communities for generations, often without formal titles. NCR land is governed by customary laws, and its ownership and boundaries are based on traditional practices. These lands are primarily used for agriculture, hunting, and habitation by indigenous groups such as the Iban, Bidayuh, and Orang Ulu communities.Over the years, development projects—such as plantations, logging, and infrastructure projects—have complicated the recognition of NCR lands. In response, the Sarawak government has initiated programs to survey and map these lands to provide formal recognition. Despite this, issues related to boundary disputes and the protection of indigenous rights remain contentious.Land Acquisition and CompensationUnder the Sarawak Land Code, the state has the power to acquire land for public purposes such as infrastructure development, economic projects, or resource extraction. However, the code ensures that landowners, including those with NCR land, receive fair compensation based on market value. Compensation also includes losses due to the acquisition, such as damage to crops or property and other factors like relocation costs or loss of income.The state can justify land acquisition for large-scale projects that are deemed beneficial to the public, such as road construction, energy projects, or industrial estates. While this encourages growth, it sometimes leads to disputes with local communities whose land may be affected.In the case of NCR land, compensating landowners can be more complex. Since much of this land isn’t formally titled, determining its value is more subjective, often leading to legal disputes between landowners and the state.Resolving Land DisputesLand disputes, particularly regarding NCR land, are a common challenge in Sarawak. The Sarawak Land Code sets out legal mechanisms for resolving these conflicts. Courts play a significant role in adjudicating land claims and compensation disputes, but legal battles over NCR land are often lengthy and complicated.To mitigate the burden on the courts, alternative dispute resolution mechanisms, such as mediation, have been introduced in recent years. This offers landowners a quicker and less costly way to settle disputes without the need for formal litigation.Recent Reforms and AmendmentsOne of the most significant amendments to the Sarawak Land Code came with the Sarawak Land Code (Amendment) Bill 2018. The amendment introduced provisions for the establishment of Native Communal Reserves, which addressed the recognition of pemakai menoa (territorial domain) and pulau galau (communal forest reserve). These terms refer to traditional areas used by indigenous communities for hunting, gathering, and other communal activities.The 2018 reforms aimed to formalize the recognition of these lands, allowing indigenous communities to claim them through legal channels. As Sarawak continues to experience rapid economic development—especially in agriculture, energy, and tourism—further reforms to the Land Code may be required. Policymakers are faced with the challenge of facilitating growth while ensuring that native communities retain their land rights and are fairly compensated when their land is needed for public projects.Ongoing Challenges and the FutureAs Sarawak continues to develop, balancing the need for land development with the rights of indigenous communities is an ongoing challenge. The Sarawak Land Code, while critical in regulating land use, faces several key issues:Land Development vs. Indigenous Rights: Large-scale developments—such as oil palm plantations, hydroelectric dams, and logging activities—frequently clash with indigenous claims over NCR land. Communities often express concerns that their land is encroached upon without adequate consultation or compensation.Surveying and Titling of NCR Land: Efforts to formalize NCR land through surveys and titling have been slow and fraught with disputes. Many indigenous landholders argue that the state’s surveying efforts do not reflect the full extent of their traditional territories, leading to legal challenges.Environmental Considerations: Sarawak is home to significant biodiversity, making land use a sensitive issue. Deforestation and land clearing for agriculture threaten not only the environment but also the livelihoods of indigenous people who rely on these lands for sustenance and cultural practices.Land Registration, Titles, and Transfer ProceduresTo formalize land ownership in Sarawak, the Land Code mandates a system of land registration. Every piece of land must be recorded with a title, and all transfers of ownership must follow specific legal protocols.Types of Land Titles: Sarawak issues various types of land titles, including perpetual leases, temporary leases, and outright grants of land. The length of ownership and restrictions on land use depend on the type of title issued.Land Transfer Restrictions: While land transfer is generally allowed, there are certain restrictions, especially concerning Native Area Land, which is protected from speculative purchases by non-natives. Any transfer of such land to non-natives requires special government approval, a process designed to safeguard native ownership.Registration Process: All transactions involving land—whether sales, leases, or transfers—must be registered with Sarawak’s Land and Survey Department. This ensures that ownership is legally recognized and documented, reducing the risk of disputes.ConclusionThe Sarawak Land Code is a vital tool in managing land in Sarawak, balancing the demands of development with the preservation of indigenous rights. However, it remains a complex and evolving legal framework. With ongoing reforms and increasing attention to environmental sustainability and indigenous rights, the future of land management in Sarawak will likely require further legal adjustments and more inclusive processes.For property owners, developers, and indigenous communities alike, a deep understanding of the Sarawak Land Code is crucial. As Sarawak continues to grow, the way land is managed will play a key role in shaping the future of land use in the region while protecting its rich cultural heritage and ensuring a fair and sustainable future for all stakeholders.This article was prepared and contributed by Clement Sim PM.

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More Than Just Jonker Walk: 5 Amazing Reasons to Visit Melaka

Version: CNAre you finding yourself in or near Malaysia or planning to go here? Don't forget to visit Melaka.Melaka is a bustling city and easy to get to. Melaka is definitely a must see in Malaysia!If you don't believe us on our word, continue reading this article to find out 5 reasons why you don't want to miss out on this city.Reasons to visit Melaka: Food Historical Monuments Street Art Religious Sites Night Market1. FoodMelaka can also be seen as a food heaven for tourists and is known for their amazing food. A mix of flavors from different cuisines takes place which create plenty of choice.This is also one of the most popular reasons why people choose to visit Melaka.Examples of cuisines that you can choose from are the Chinese cuisine, Indian, Malaysian, and Portuguese.Popular dishes that you should try are Nyonya laksa, cendol, Malaccan wonton noodles and fish ball soup. 2. Historical monumentsNext to the great food, there are also other reasons why you should visit Melaka.One of these reasons are the historical monuments that this city has to offer.In 2008, Melaka has been chosen to be on the list of UNESCO's World Heritage list. This list includes important natural and cultural places chosen for their exceptional importance to everyone.The city has an intriguing history. It contains a history in which the Portuguese, Dutch and English were in Melaka for certain periods.Nowadays, Melaka is part of Malaysia. But historical remains of other countries can still be seen.For example, in Melaka is located the Dutch square, Stadthuys, and Christ church all from the Dutch period. For the Portuguese period you can find remains of the A Famosa fort and St Paul’s Church.In addition to these historic relics, don't forget to take a stroll through the adjacent streets full of old-style houses. 3. Street ArtThe weather in Melaka will remain pleasant throughout the year. A good option to enjoy the city and the weather at the same time is to stroll through the city.But strolling through the city in Melaka is of course not the same as strolling through your hometown.Enjoy the street art that you can find throughout the city or visit the bustling cafes Melaka has to offer.You can find the street art close to the river. If you're not a big fan of strolling through the city, a great way to still enjoy the street art is to go on a cruise along the river. 4. Religious sitesMany different religions co-exist in Malaysia, Christianity, Islam, Hinduism and many more.These religions can be seen reflected in Melaka. In the city there are temples, churches, as well as mosques.A popular mosque is the Masjid Selat Melaka also known as the floating Mosque. This mosque is a bit more difficult to visit because it's located outside of the main centre. When the water level is high, it seems like the mosque is floating.You can visit Jonker street if you are interested in visiting temples, there you can find a lot.Next to the Dutch square you will find the Christ church. 5. Night marketJonker Walk is a bustling street during weekdays but also during weekends.On weekends, the street comes alive at night with a vibrant night market offering a variety of street food, beverages, and snacks.You'll find stalls selling everything from local herbs and small treasures to clothes, art, and more. For those who prefer shopping in cooler environments, the city also boasts several high-end malls.If you want to try out different night markets besides Jonker walk you can. There are a lot of different options such as the Vintage night market, Pahlawan Walk Night Market, and different Pasar Malam's. ConclusionMelaka is a vibrant mix of history and modern delights, perfect for history enthusiasts, food lovers, and shoppers alike.With its historic sites and lively markets, it's a must-see for travelers seeking a taste of Malaysia's heritage and contemporary offerings.Melaka definitely has a lot to offer, it's a beautiful destination to add to your itinerary. Don’t miss your chance to invest in this tourist heaven with IQI Tender and turn your dreams into reality. hbspt.forms.create({ region: "na1", portalId: "5699703", formId: "6e12d8a0-3f50-4a1c-af52-a81dd61e9754"  });

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Malaysia Awaits: Unleashing the Potential of Your Hotel Business in Asia’s Hidden Gem

Every hotelier's journey is punctuated with moments of discovery and expansion. With its melting pot of cultures and booming tourism sector, Malaysia beckons as the next must-explore destination. But why here? Why now? In this deep dive, we journey through bustling cities, serene landscapes, and the business potential they hold. We make a compelling case for why planting your flag in Malaysia could be the game-changer your hotel business needs.Planting your flag in Malaysia:Reasons to choose Malaysia1. Rapid Growth in Tourism2. A Variety of Attractions3. Perfectly LocatedBenefits of owning a hotel building1. Earning Potential2. Increase in Property Value3. Brand ExpansionThe Secrets to success1. Understanding Regional Needs2. Forging Community Ties3. Staying Flexible3 main reasons to choose Malaysia1. Rapid Growth in TourismMalaysia’s tourism scene is flourishing, with millions of international tourists pouring in every year.The country offers a unique mix of bustling city life, rich cultural heritage, and stunning natural landscapes, making it a top choice for travellers from around the world.According to the Tourism Malaysia 2023 Annual Report, the total tourist population is 33.3 million.The following table shows the tourist population of each state in Malaysia in 2023: State Tourist population (2023) Kuala Lumpur 10.3 million Selangor 8.7 million Johor 7.5 million Melaka 8.2 million Penang 7 million Sabah 6.5 million Sarawak 6 million Kedah 5.5 million Pahang 5 million Kelantan 4.5 million Terengganu 4 million Perak 3.5 million Negeri Sembilan 3 million Perlis 2.5 million The tourist population is expected to grow to 35 million people by 2025. This growth is driven by several factors, which include: the increasing popularity of Malaysia as a tourist destination the growing number of middle-class consumers in Asia the expanding connectivity of Malaysia to other parts of the worldBesides that, the Malaysian government is committed to promoting tourism in the country.It has invested heavily in infrastructure, tourism development and launched several initiatives to promote Malaysia as a tourist destination. The growth of the tourism industry in Malaysia is benefiting the country's economy in a number of ways, such as: creating jobs generating income boosting tax revenue promoting Malaysia's culture and image around the world 2. A Variety of AttractionsWith a diverse landscape, Malaysia has different experiences and sights to see.It has beautiful beaches, lush rainforests, towering mountains, and a rich culture and history, with various festivals and events held throughout the year.The most popular tourist destinations are Kuala Lumpur, Selangor, and Johor. These states have many popular attractions, such as the Petronas Twin Towers, Batu Caves, and the Legoland Malaysia Resort.Other popular tourist destinations include Penang, Sabah, and Sarawak, known for their beautiful beaches, rainforests, and cultural attractions.Malaysia has something for everyone, no matter what kind of adventure they’re looking for. 3. Perfectly LocatedIn Southeast Asia's centre, Malaysia is a key spot for business and holiday travel.It’s easy to get to thanks to its well-connected airports and efficient public transportation, making it a convenient destination for visitors. 3 benefits of owning a hotel building1. Earning PotentialOwning a hotel property can bring in a steady flow of income, with guests booking rooms, events being held on the premises, and extra services such as restaurants and wellness centres contributing to the revenue.2. Increase in Property ValueHotels in prime and strategic locations generally increase in value as time goes on, presenting an opportunity for a profitable sale in the future that could substantially increase your financial assets.3. Brand ExpansionOwning a hotel building in Malaysia and expanding your business to different states can be rewarding.By branching out and opening hotels in different regions within Malaysia, you’re given a golden chance to enhance the presence of your hotel brand and create a solid and loyal network of customers. The Secrets to SuccessEmbrace the potential of Malaysia’s tourism sector, which boasts a vast and varied customer base.The country's unique appeal draws in a mix of local travellers seeking a weekend getaway and international tourists eager to explore the rich Malaysian culture and landscapes.This diversity provides a unique opportunity for your hotel business to thrive. Still, it will be easier to cater to the distinct needs of different travellers with these strategies below:1. Understanding Regional NeedsInvestigate and comprehend the unique requirements and tastes of each area you intend to branch out to, ensuring your hotel's offerings are ideally suited to local expectations.2. Forging Community TiesCollaborate with local businesses, tour operators, and authorities to boost your hotel's presence and appeal in the new locale. 3. Staying FlexibleKeep a versatile and responsive stance in your business operations to effectively address and satisfy the distinctive demands of every region you operate in.In conclusion, Malaysia's booming tourism industry, diverse destinations, and strategic location provide a perfect environment for success.You can transform your hotel business into a thriving empire with the right strategies and a customer-centric approach.Malaysia awaits your investment – it's time to embark on this exciting journey and explore the untapped potential of the Malaysian hospitality market.Now IQI Tender is giving you this unprecedented opportunity to invest in a ten-storey Hotel Building in Malacca.Located in the new heart of Malacca City, it is linked to Melaka Raya commercial centre and Kota Laksamana commercial centre and is also close to various tourist attractions.Take advantage of this incredible opportunity! Contact IQI Tender now for more information! hbspt.forms.create({ region: "na1", portalId: "5699703", formId: "6e12d8a0-3f50-4a1c-af52-a81dd61e9754"  });

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