Commercial property · Sarawak
Commercial property in Sarawak: shop offices, offices and factories
Buying or renting a shop lot, office or factory in Sarawak works differently from buying a home: the land use, the financing, the tax on rent and the foreign-buyer rules all change. This guide sets out what to check, and Jason can send current units for sale or rent.
Before you offer
Six checks on a commercial property
- Land use and express condition. The title shows whether the land is for commercial, industrial or residential use. A shop on residential land, or a factory outside an approved industrial zone, limits what you can do and who will lend.
- Certificate of Completion and Compliance (CCC). Confirm the building has its CCC and any change of use has been approved by the local council.
- Business licence fit. Check with the local council that your trade can be licensed at that address before you commit.
- Existing tenancy. A tenanted shop or factory comes with its lease; read the rent, term, renewal option and who pays for repairs.
- Financing. Banks lend on commercial property on different terms from homes; get a pre-assessment before the offer.
- Holding costs. Assessment and quit rent are higher on commercial land; budget for them with the service charge.
Sarawak rules
What applies to foreign buyers and sellers in Sarawak
State rules as summarised on the Sarawak property page; confirm the current position with your lawyer before you sign.
Sarawak Land Code (Cap. 81), not the National Land Code
Sarawak has its own land law. Section 13A bars foreigners from holding land unless an exception applies. Source: Mondaq / Low & Partners; S.K. Ling & Tan Advocates.
Strata units: allowed, no Sarawak minimum price
Section 13E(2)(b) lets foreigners buy individual parcels in a building subdivided under the Strata Titles Ordinance 1995. Law firms citing the 2019 Direction say commercial and residential strata units carry no minimum market value. Some secondary guides quote RM600,000 for strata too, so confirm with your lawyer. Source: Lo & Partners; S.K. Ling & Tan; IQI Global.
Landed homes: RM600,000 in Kuching Division, RM500,000 elsewhere
Set by the Land (Market Value of Property for Foreign Acquisition) (Amendment) Direction 2019. The same figures apply to house purchases under the S-MM2H programme. Source: Mondaq; S-MM2H programme page.
State approval before you buy
Approval comes through the Land and Survey Department, Sarawak, under ministerial direction; lawyers advise getting it before signing. No published state levy was found. Source: IQI Global; S.K. Ling & Tan.
Native land is off limits
Section 8(a) bars non-natives, including Malaysians from outside Sarawak, from Native Area Land, Native Customary Land and Interior Area Land. Source: Mondaq / Low & Partners.
Excluded property types
Low-cost and low-cost-plus homes, Bumiputera-reserved units, vacant land and landed commercial property cannot be bought by foreigners. Source: S.K. Ling & Tan; IQI Global.
Tax
Stamp duty, RPGT and service tax
- Stamp duty on the transfer uses the same scale as homes: 1% of the first RM100,000, 2% of the next RM400,000, 3% to RM1 million and 4% above.
- RPGT applies on sale at the same rates as residential property.
- Service tax on rent. Rental and leasing of commercial property became a taxable service from 1 July 2025 (8%), reduced to 6% from 1 January 2026, for landlords whose commercial rental turnover exceeds RM1 million in 12 months. Residential rentals are outside the scope.
Straight answers
Frequently asked questions
Can a foreigner buy commercial property in Sarawak?
Generally yes, with state consent, but states set their own minimum prices and conditions for commercial and industrial property, which can differ from the residential minimum shown above. Your lawyer confirms the current figure for the specific title.
Is there service tax on shop or office rent?
From 1 January 2026, 6% service tax applies to commercial rental for landlords whose commercial rental turnover exceeds RM1 million in 12 months; it was 8% from July to December 2025. Residential rent is not taxed this way.
Shop office or factory: which rents better?
It depends on the location and demand; ask Jason for recorded rents and occupancy in the specific area.
Can Jason find a shop, office or factory for me?
Yes. Send the type, size, area and budget, and whether you want to buy or rent.
General information by a registered agent, not legal or tax advice. Rates as published for 2026; your lawyer and LHDN have the final figure. Checked October 2026.
Looking for a shop, office or factory in Sarawak?
Send the type, size, area and budget, buy or rent. I reply with current units and the checks that matter.