british malaysian chamber of commerce trade...trowers & hamlins is the first foreign firm to...
TRANSCRIPT
British Malaysian Chamber of Commerce
Overseas Business Network Initiative: A brief overview on the professional service industry in Malaysia.
What will this presentation cover?
The Financial Service Industry
&
The Legal Service Industry
Key players and understanding the landscape
Means of market entry
Areas of opportunities
Legal Services in Malaysia
The Malaysian Bar Council The bar was created under the Legal Profession Act 1976, Membership into
the Bar is automatic and mandatory
Liberalisation of Legal Services
In 2014 amendments made to the Legal Profession Act which allowed foreign
participation
The provision was classified under “Licensing Of International Partnerships And Qualified Foreign Law Firms And Registration Of Foreign Lawyers”
Foreign law firms and foreign lawyers will now be permitted to practise in Peninsular Malaysia in the manner set out in the legislation.
foreign Entry into Legal Service Industry – Licensing
2 Types of Licenses offered to foreign law firms:
International Partnership with a Malaysian law firm –
An International Partnership will be a partnership between a foreign law firm and a Malaysian law firm. Approval shall be given for the name of the International Partnership to be a combination of the names of the foreign law firm and the Malaysian law firm
The Malaysian law firm should not have less than 60%, and the foreign law firm no more than 40%, of the equity and voting rights and of the total number of lawyers in the International Partnership
Qualified Foreign Law Firm (QFLF) – A foreign law firm licensed as a QFLF will not require a Malaysian law firm as a partner. QFLF licences will be granted, as this avenue has been created to support the Malaysian
Government’s Malaysian International Islamic Finance Centre (“MIFC”) QFLF licences will therefore only be granted to international law firms that have proven expertise
in international Islamic finance, and which would be able to support and contribute to the MIFC ii) The number of Malaysian lawyers in a QFLF shall not be less than 30% of the total number of
lawyers in that firm
foreign Opportunities
Trowers & Hamlins is the first foreign firm to attain QFLF status in Malaysia
The licence was approved by the Malaysian Bar Council and is effective from 4 April 2015. It will last three years, with an option to renew
The Malaysian Government has made it clear that one of the main reasons for liberalising the legal market was to attract foreign firms and help boost the country’s Islamic finance market - Nicholas Edmondes, Partner
foreign http://www.mifc.com/03 For more information
The Malaysian Bar: www.malaysianbar.org.my Officer in Charge: Mr.Roobalavaniah Rengasamy Office tel: +603 2050 2171 Email: [email protected]
MIFC: http://www.mifc.com/ Office tel: +603 2692 3481 Email: [email protected]
foreign Financial Service Industry
Money Services Business: 1. Money Changing Business 2. Remittance Business 3. Wholesale Currency Business 4. Fintech
Regulators and Licenses
Bank Negara Malaysia (Central Bank) Banker and adviser to the Government of Malaysia and regulates the
country's financial institutions, credit system and monetary policy
The MSB Act 2011 (Money Services Business Act 2011) Uniformity: Greater business flexibilities and opportunities including the
ability to carry on multiple business activities within a single entity for qualified entities, thus promoting greater synergies between these activities and economies of scale
Types of licenses: Money-changing (Class C), Remittance (Class B), Money-
changing & Remittance (Class A), Money-changing & Wholesale Currency (Class C &D), Money-changing, Remittance & Wholesale Currency (Class A & D)
foreign License application and stipulations
Acquiring License - excerpt Consideration for a new MSB licence will be based on the requirements under Section 6 of MSBA and
the assessment of the value propositions proposed by the applicant including the ability to fill industry gaps, meeting demand of underserved market and contribution towards modernisation of the industry
Whether the granting of the licence would be beneficial to the national economic interest of Malaysia
Remittance Service - excerpt A licensee who carries on remittance business shall maintain a designated account at a licensed bank
for the purpose of remittance business with its customers
No licensee who carries on remittance business shall utilise a remittance system (software), whether its own system or a system of a third party, without the prior written approval of the Central Bank – The remittance system shall meet the minimum requirements as the Central Bank may prescribe
foreign Fintech – Emerging opportunity
2nd June 2016: Bank Negara announced the establishment of a Financial Technology Enabler Group (FTEG), which will be responsible for formulating and enhancing regulatory policies to facilitate the adoption of technological innovations in the Malaysian financial services industry. The FTEG will also serve as the Bank’s dedicated contact point for financial technology (fintech) related queries including on regulatory matters related to the adoption of fintech in the financial services industry. The FTEG is contactable at [email protected]
Tun Razak Exchange
TRX is an iconic 70-acre development in the heart of Kuala Lumpur that is set to become a leading centre for international finance and business
Malaysia’s economic aspiration to have a financial district to rival neighbouring Singapore and Shanghai
The district is expected to attract 250 global financial services companies and create 40,000 skilled and knowledge-based jobs
foreign OBNI Malaysia
Sridaran Sabapathy (Sri) Email: [email protected] Tel: +603 2163 1784
For more market advice on the professional service industry, please contact: