Thirteenth Schedule

[Subsection 561(2)]

ACTIVITIES NOT REGARDED AS CARRYING ON BUSINESS IN MALAYSIA

A foreign company shall not be regarded as carrying on business in Malaysia for the reasons only that the company does the following matters in Malaysia:

(a) is or becomes a party to any action or suit or any administrative or arbitration proceeding or effects settlement of an action, suit or proceeding or of any claim or dispute;

(b) holds meetings of its directors or shareholders or carries on other activities concerning its internal affairs;

(c) maintains any bank account;

(d) effects any sale through an independent contractor;

(e) solicits or procures any order which becomes a binding contract only if the order is accepted outside Malaysia;

(f) creates evidence of any debt, or creates a charge on movable or immovable property;

(g) secures or collects any of its debts or enforces its rights in regard to any securities relating to those debts;

(h) conducts an isolated transaction that is completed within a period of thirty one days, but not being one of a number of similar transactions repeated from time to time;

(i) invests any of its funds or holds any property; or

(j) imports goods temporarily under the Customs Act 1967 [Act 235] for the purpose of display, exhibition, demonstration or as trade samples with a view to subsequent re-exportation within a period of three months or within such further period as the Director General of Customs and Excise may in his discretion allow.