What Foreigners Can and Cannot Buy in Malaysia

Malaysian land law is state law. The National Land Code (Act 828) sets the framework — section 433B requires prior approval of the State Authority for every acquisition of land by a non-citizen or foreign company — but each of the 13 states sets its own minimum purchase prices and restricted categories. Here is the practical breakdown.

Properties foreigners can generally buy

• Stratified residential property — condominiums, serviced apartments and apartments above the state's foreign minimum purchase price (RM500,000–RM2,000,000 depending on the state; see our state-by-state guide)
• Landed houses in most states, above the (usually higher) landed minimum — except Selangor, which limits foreigners to strata and landed-strata (gated community with strata title) property
• Commercial property — offices, retail lots, shop-offices — above the state minimum, with state consent
• Industrial property, subject to state policy

All of these still require state consent (below).

Properties foreigners cannot buy

• Malay Reserve land — gazetted under the Malay Reservation Enactments; it cannot be transferred to non-Malays, and never to foreigners.
• Bumiputera-quota units ("Bumi lots") — new developments reserve a quota of units for Bumiputera buyers. A Bumi lot can only be sold to a non-Bumiputera (let alone a foreigner) if the state authority formally releases the unit from the quota. Do not buy a Bumi lot on a seller's assurance that release "will be arranged".
• Agricultural land — most agricultural land is off-limits to foreigners (limited state-specific exceptions exist for large-scale agricultural ventures; treat farmland as unavailable unless the state land office confirms otherwise in writing).
• Low-cost and affordable-scheme housing — units built under schemes such as low-cost/medium-low-cost housing, Rumah Selangorku or PR1MA are reserved for eligible Malaysians.
• Properties below the state's foreign minimum purchase price — the state will simply refuse consent.

Some states add their own carve-outs — for example, Selangor also bars foreigners from buying at auction, and several states exclude Malay Reserve and agricultural land explicitly in their foreign-purchase guidelines.

The state consent gate

Unlike Singapore (where a foreigner can buy a condo with no approval), every foreign purchase in Malaysia — including an ordinary condo — is conditional on the state authority's consent under s.433B. Your lawyer applies after the sale and purchase agreement is signed; processing typically takes 3–6 months and the SPA is drafted to be conditional on approval. We cover the mechanics in the state-consent article.

East Malaysia is different again

Sabah and Sarawak administer land under their own ordinances (Sarawak under its own Land Code), with their own minimum prices and tighter rules on landed and native-title land. If you are buying in Kota Kinabalu or Kuching, use a lawyer admitted in that state.

The practical takeaway

For most foreign buyers, the usable universe is:

• Condominiums and serviced residences in KL, Penang, Johor Bahru and other urban centres, priced above the state minimum
• Landed homes above the landed minimum in states that permit them (not individual-title landed in Selangor)
• Commercial units above the state minimum

Before you commit to anything, verify three things: the property is not a Bumi lot or on Malay Reserve land, the price clears the state's current foreign minimum, and the SPA is conditional on state consent. All three are cheap to check and expensive to discover late — thresholds and categories change, so confirm the current rules with the relevant state land office (Pejabat Tanah dan Galian) before signing.