The transnational development of modern Chinese Buddhist organizations is represented by Fo Guang Shan, Tzu Chi, and Dharma Drum Mountain in Taiwan, and Fo Guang Shan is the earliest Taiwanese Buddhist organization to realize the development of transnational communication. From the case of Fo Guang Shan in Malaysia, it can be proved that "participation in the local society" is one of the key elements for Fo Guang Shan to achieve transnational development and to implement the localization. Fo Guang Shan, Malaysia (FGSM) is one of the significant organizations of Fo Guang Shan's overseas development. From FGSM establishment to development, it has nothing to do without the participation of local society. From the local Buddhist community who assisted in the circulation of Master Hsing Yun's works in the 1950s, to the training of young local Buddhist talents at Fo Guang Shan in Taiwan, to the time when Hsing Yun was invited by the local Buddhist community in Malaysia, all of these are to promote the Fo Guang Shan formally established a temple in Malaysia in 1989. In addition, Fo Guang Shan also established the Buddha's Light International Association (BLIA) of Malaysia in 1992 with the assistance of the local social talents, and implemented the localized development of FGSM becoming a fairly large-scale and representative Buddhist organization. The establishment and development of FGSM embodies a successful case of transnational and localized development due to the participation of local people, which can provide a reference for the transnational development of modern religious organizations.