Local incorporation is required for investment in insurance activities, except for international takaful operator and professional reinsurers and retakaful operators.
"PART I - PRELIMINARY 
[Interpretation]
2. (1) In this Act, unless the context otherwise requires— [...]
“public company” has the same meaning assigned to it in subsection 4(1) of the Companies Act 1965 [repealed by Companies Act 2016];
[...]
Division 6 - General matters
[Form of establishment]
24. (1) A person who is to be licensed under section 10 to carry on banking business, insurance business (other than a person who is to be a professional reinsurer) or investment banking business shall be a public company.
(2) The Bank may specify the form of establishment of— (a) a person who is to be licensed as a professional reinsurer; or (b) a person who is to be approved under section 11 to carry on an approved business.[...]" (Financial Services Act 2013 [Act 758])
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"PART I - PRELIMINARY
4. Interpretation 
2. (1) In this Act, unless the context otherwise requires— [...]
"private company" means— (a) any company which immediately prior to the commencement of this Act was a private company under any corresponding previous written law; (b) any company incorporated as a private company under this Act; or (c) any company converted into a private company under Section 41, being a company which has not ceased to a private company under section 42 [...]
“public company” means a company other than a private company;
[...]
PART II - FORMATION AND ADMINISTRATION OF COMPANIES
Division 1 - Types of Companies [...]
Types of companies  10.
(1) A company may be incorporated as—  (a) a company limited by shares; (b) a company limited by guarantee; or (c) an unlimited company. [...]
Private or public company  
11. (1) A company limited by shares shall either be a private company or a public company.  (2) A company limited by guarantee shall be a public company.   (3) An unlimited company shall either be a private company or a public company. [...]"(Companies Act 2016 [Act 777])
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"1 Introduction
1.1  Pursuant to section 10 of the Financial Services Act 2013 (FSA) and the Islamic Financial Services Act 2013 (IFSA), Bank Negara Malaysia (the Bank) shall assess an application for a licence to carry on banking business, Islamic banking business, insurance business, takaful business or investment banking business, having regard to relevant factors including prudential requirements and whether the application will be in the best interest of Malaysia.
1.2 This policy document aims to set out the application and assessment process for– (a) prospective applicants under section 10 of the FSA to obtain a licence to carry on: (i) banking business; (ii) investment banking business; (iii) life business; (iv) general business; or (v) professional reinsurer business; or (b) prospective applicants under section 10 of the IFSA to obtain a licence to carry on: (i) Islamic banking business; (ii) international Islamic banking business; (iii) family takaful business; (iv) general takaful business; (v) professional retakaful business; or (vi) international takaful operator business. 
[...]
4 Effective Date
4.1 This policy document comes into effect on 27 December 2019. 
[...]
8 Considerations under the law
8.1 Pursuant to section 10 of the FSA and IFSA, in assessing an application to carry on any licensed business under the respective Act, the Bank shall consider all the factors set out in Part 1 and Part 2 of Schedule 5 of the FSA or IFSA, and such other matters that the Bank considers relevant. [...]
8.3 The factors set out in Schedule 5 of the FSA or IFSA are as follows– [...](h) whether the application will be in the best interest of Malaysia, having regard to– (iv) the degree and significance of participation of Malaysians in the financial sector; and  
[...]
Form of Establishment
9.4 Subject to paragraph 9.5, all licensed persons are required to be public companies incorporated in Malaysia under the Companies Act 20165.
9.5 A professional reinsurer, a professional retakaful operator, a licensed international Islamic bank, and a licensed international takaful operator may be established as a branch of a foreign institution. [...]" (Bank Negara Malaysia (2019), "Application Procedures for New Licences under Financial Services Act 2013 and  Islamic Financial Services Act 2013" , BNM/RH/PD 030-4, December 27)
Financial Services Act 2013 [Act 758]
Companies Act 2016 [Act 777]
Bank Negara Malaysia (2019), "Application Procedures for New Licences under Financial Services Act 2013 and  Islamic Financial Services Act 2013" , BNM/RH/PD 030-4, December 27
[<a href="https://www.bnm.gov.my/documents/20124/820862/Financial+Services+Act+2013.pdf">Act</a>],[<a href="https://www.ssm.com.my/sites/default/files/companies_act_2016/aktabi_20160915_companiesact2016act777_0.pdf">Act</a>],[<a href="https://www.bnm.gov.my/documents/20124/938039/PD+030-4_Licensing+Guide_FDI_FSA-IFSA.pdf/3ddc8322-3358-a22c-b751-2d4ab1e33e96?t=1592251348473">Procedures</a>]