Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd?
Asset Protection
When a foreign company is used as the shareholder, assets can be separated from an individual’s personal name, making liability clearer.
Advantages:
Limits personal risk
In the event of legal disputes, the company—not the individual—bears the liability
A multi-layer structure prevents assets from being easily pursued
This approach is especially popular in industries with higher operational risk (such as construction, import & export, engineering, manpower supply, and technology).
Indonesia
