Section 82.8 of the Income Tax Act 1967 states that all records that relate to any business in Malaysia shall be kept and retained in Malaysia. 

Section 129.1 of the Personal Data Protection Act (PDPA) prohibits a data user from transferring the personal data of a data subject to a place outside of Malaysia unless to places specified by the Minister, upon the recommendation of the Personal Data Protection Commissioner, by notification published in the Gazette. The Minister may specify such places that have any law in force which is substantially similar to the PDPA, serves the same purpose as the PDPA, or ensures an adequate level of protection in relation to the processing of personal data which is at least equivalent to the level of protection afforded by the PDPA. Section 129.3 of the PDPA provides exceptions whereby a data user may transfer any personal data to a place outside Malaysia if:
- the data subject has given their consent to the transfer;
- the transfer is necessary for the performance of a contract between the data subject and the data user;
- the transfer is necessary for the conclusion or performance of a contract between the data user and a third party which is entered into at the request of the data subject or is in the interests of the data subject;
- the transfer is for the purpose of any legal proceedings, obtaining legal advice or for establishing, exercising, or defending legal rights;
- the data user has reasonable grounds for believing that in all circumstances of the case, the transfer is for the avoidance or mitigation of adverse action against the data subject; it is not practicable to obtain the consent in writing of the data subject to that transfer; and where it is practicable to obtain consent, the data subject would have given their consent;
- the data user has taken all reasonable precautions and exercised all due diligence to ensure that personal data will not be processed in any manner which, if that place were Malaysia, would be a contravention of the PDPA;
- the transfer is necessary in order to protect the vital interests of the data subject; or
- the transfer is necessary as it is in the public interest in circumstances as determined by the Minister.

Copyright is not adequately enforced online in Malaysia. It is reported that online piracy, including book and journal piracy, remains a challenge for rights holders.

Malaysia is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).

It is reported that while price considerations are important in concluding a government contract, the "value for money" concept includes non-price factors and broader policy considerations, such as accelerating economic growth through procurement, maximising the use of local materials and resources, promoting local freight and insurance, transferring technology, and providing incentives for indigenous entrepreneurs (Bumiputera). Bumiputera suppliers benefit from a preference margin of 2.5% to 10%, inversely proportional to the contract value, for goods and services contracts valued between MYR 100,000 (approx. USD 23,500) and MYR 15 million (approx. USD 3.5 million), with no preferences for contracts above MYR 15 million. For locally made goods by Bumiputera manufacturers, the preference margin is 10% for contracts below MYR 10 million (approx. USD 2.3 million), up to 5% for contracts between MYR 10 million and MYR 100 million, and 3% for contracts above MYR 100 million. This practice has persisted since 1995. Additionally, it is reported that all individuals, companies, or corporate bodies intending to participate in government procurement of works, supplies, and services must be approved by and registered with the Ministry of Finance. Procurement often involves middlemen rather than direct dealings with the governmental entity or is negotiated rather than tendered.

It is reported that all individuals and enterprises intending to do business with the Malaysian Government must register with the relevant authorities: the Ministry of Finance (MOF) for goods and services and the Construction Industry Development Board (CIDB) for works, to obtain their Contractor Registration Certificate (PPK) and Government Procurement for Works Certificate (SPKK). Penalties for non-compliance or substandard performance include suspension of registration for up to five years, effectively barring opportunities to compete for government contracts during that period. While exemptions from registration exist under certain circumstances, subject to the approval of MOF/CIDB, tender deposits may not be waived for international bidders. Registered local suppliers and contractors are exempt from tender deposit requirements, whereas foreign bidders must provide deposits ranging from MYR 60,000 (approx. 13,000 USD) to MYR 1 million (approx. 212,000 USD). Additionally, successful bidders must provide performance bonds issued by financial institutions licensed to operate in Malaysia. While this policy is widely reported, no specific official text detailing these practices has been found online.

It is reported that Malaysia has traditionally used government procurement contracts to support national public policy objectives, including encouraging greater participation of Bumiputera (the majority Malay ethnic group) in the economy, transferring technology to local industries, reducing the outflow of foreign exchange, creating opportunities for local companies in the services sector, and enhancing Malaysia’s export capabilities. Consequently, Malaysia generally invites international tenders only when domestic goods and services are unavailable or, in other cases, it provides set-aside contracts for Bumiputera suppliers and contractors and applies preferential price margins to enhance the competitiveness of Bumiputera bidders. Often, foreign companies find they need to take on a local, Bumiputera-qualified partner before their tenders will be considered. While this policy is widely reported, no specific official text detailing these practices has been found online.

Malaysia is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2012.

According to Section 2.1 of the Malaysian Communications and Multimedia Commission (MCMC) Guidelines, foreign applicants must incorporate a local company to obtain a license in the telecom sector. For class licenses, there are no restrictions on foreign equity investment. However, applications for individual licenses are assessed on a case-by-case basis and are subject to certain equity restrictions. While foreign participation in the equity of Network Facility Providers (NFPs) and Network Service Providers (NSPs) can be up to 70% according to government websites, it is reported that in practice, individual licenses often require a minimum 30% Bumiputera (the majority Malay ethnic group) shareholding and foreign shareholding is capped at 49%. These equity restrictions do not apply if the license holder is a publicly listed company but do apply if the licensee is a private limited company held by a public limited company.

It is reported that Telekom Malaysia, the national telecommunications firm and a major provider of fixed-line and broadband services with an approximate market share of 95%, is subject to a foreign shareholding cap of 30% overall and 5% for individual investors.

The Companies Act 2016 prescribes the minimum number of directors in a company. Section 196.1 provides that a private company shall have a minimum of one director who ordinarily resides in Malaysia by having a principal place of residence in Malaysia (‘resident director’). For a public company, it shall have a minimum of two resident directors.

A foreign company may carry on business in Malaysia by either incorporating a local company or registering a branch in Malaysia.

There is no discrimination towards foreign applicants. However, there are restrictions for national applicants wishing to apply for patents internationally. They must file in Malaysia initially before becoming eligible to apply for patents in other countries, two months subsequent to the date of filing, assuming they are not notified by the Malaysian Patent Office.