Foreign companies investing in Malaysia will no longer need to set aside 30 percent of their equity to so-called Bumiputera investors, Prime Minister Najib Razak announced.
Bumiputera ("sons of the soil") is a term used to describe Malays and indigeneous people.
Foreign investors will also now be permitted to own up to 70 percent of local stock brokerages - up from a previous limit of 49 percent.
However, in designated "strategic" industries - including banks, telecommunications and energy companies - they will be restricted to minority shares.
The move by the Malaysia government comes as the economic outlook deteriorates. Prime Minister Razak has said that the economy may contract by as much as 5 percent this year.
Sources: FT, Bloomberg
