The Foreign Investment Agreement serves as a crucial legal framework for establishing foreign investment relationships in Malaysia. This document is essential when foreign entities seek to invest in Malaysian businesses, projects, or establish new operations in the country. It must comply with various Malaysian regulations, including the Promotion of Investments Act 1986, Companies Act 2016, and specific industry regulations. The agreement typically includes detailed provisions on investment structure, ownership rights, management control, local content requirements, technology transfer, and compliance with Malaysian foreign investment policies. It's particularly important for ensuring regulatory compliance while protecting both foreign investor interests and national economic objectives.

1. Parties: Identification of the foreign investor and local entity/government body, including registration details and addresses

2. Background: Context of the investment, including the purpose and preliminary discussions or arrangements

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Investment Structure: Details of the investment amount, form of investment, and payment terms

5. Regulatory Compliance: Commitments regarding compliance with Malaysian laws and regulations, including foreign investment requirements

6. Representations and Warranties: Statements of fact and assurances from both parties

7. Investment Timeline: Schedule of investment tranches and key milestones

8. Management and Control: Governance structure and decision-making processes

9. Financial Provisions: Financial obligations, profit sharing, and dividend policies

10. Employment and Local Content: Commitments regarding local employment and use of local resources

11. Intellectual Property Rights: Protection and usage of IP in the investment context

12. Confidentiality: Protection of sensitive information and trade secrets

13. Term and Termination: Duration of the agreement and circumstances for termination

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

15. Force Majeure: Provisions for unforeseen circumstances affecting performance

16. General Provisions: Standard clauses including notices, amendments, and entire agreement