Existing

New

ECM 6 : Credit Facilities to Non-Residents

Non-resident correspondent banks and non-resident stockbroking companies were permitted to obtain credit facilities in aggregate up to RM5 million from banking institutions to fund mismatch of receipts and payments through their External Accounts.
 

Domestic credit facilities to non-resident correspondent banks and non-resident stockbroking companies are no longer allowed.
ECM 9 : Investments Abroad

Residents with no domestic borrowing were allowed to make payment to non-residents for purposes of investing abroad.
   

Corporate residents with domestic borrowing were allowed to invest abroad up to the equivalent of RM10 million per calendar on a corporate group basis.
 

Residents with no domestic borrowing are allowed to make payment to non-residents for purposes of investing abroad, up to an amount of RM10,000 or its equivalent in foreign currency per transaction.
   

All residents require prior approval to make payments to non-residents for purposes of investing abroad, for an amount exceeding RM10,000 equivalent in foreign currency.
ECM 10 : Foreign Currency Credit Facilities and Ringgit Credit Facilities from Non-Residents

Residents were allowed to obtain ringgit credit facilities of below RM100,000 in the aggregate from any non-resident individuals.
 

Residents are not allowed to obtain ringgit credit facilities from any non-resident individuals.
ECM 12 : Securities

There was no restriction on the secondary trading of securities registered in Malaysia, between residents and non-residents, and between non-residents and non-residents.
   

For transfer of securities registered outside Malaysia from non-resident to a resident, the resident was subject to the rules on investments abroad.
 

Ringgit securities are required to be deposited with authorised depositaries.

 

 

Ringgit securities held by non-residents must be transacted through an authorised depositary for good delivery.

 

 

All payments by non-residents for any security registered in Malaysia must be made in foreign currency or in ringgit from an External Account.

 

 

All proceeds in ringgit received by a non-resident from the sale of any resident security must be retained in an External Account (subject to the conditions on such accounts). However, should the ringgit security be held for more than one year, proceeds from the sale of such securities can be :

  • Immediately converted to foreign currency; or

  • Credited to the External Account.
   

All payments to residents for any security registered outside Malaysia from non-residents, must be made in foreign currency.





|Home|Contents|

This report is reproduced with permission from Kassim Chan Tax Services Sdn Bhd (36421-T) and Deloitte Touche Tohmatsu Tax Services Sdn Bhd (151497-P). 7th Floor, 3 Cangkat Raja Chulan 50200 Kuala Lumpur, Malaysia or P.O.Box 11151, 50736 Kuala Lumpur, Malaysia.
Telephone: (603) 232 0711, Facsimile: (603) 2304746, (603) 230 0585

No part of this report may be reproduced in any form without the prior consent of Kassim Chan Tax Services Sdn Bhd and Deloitte Touche Tohmatsu Tax Services Sdn Bhd.

Another Malaysian resource site designed and hosted by MIR Communications Sdn Bhd.