Issued by the Central Bank of Malaysia

EXCHANGE CONTROL RULES
E. FOREIGN INVESTORS	FOREIGN INVESTORS
1. Maintain foreign currency accounts in Malaysia	Yes	Needs Approval		No
a. Use funds in account to invest in ringgit assets in Malaysia	*
b. Transfer funds in this account to accounts abroad	*
2. Maintain ringgit External Accounts in Malaysia
a. Use funds in account to invest in ringgit assets in Malaysia	*
b. Credit the account with repatriation of offshore ringgit funds maintained with banks overseas				*
c. Convert ringgit in account into foreign currency which have been invested in ringgit assets for less than 12 months				*
d. Convert ringgit in account into foreign currency which have been invested in ringgit assets for more than 12 months	*
e. Convert ringgit funds derived from dividends, interest, rentals, commission, fees, and profits	*
3. Obtain domestic loans
a. In ringgit from banking institutions in Malaysia up to an aggregate of RM200,000	*
b. In ringgit from banking institutions in Malaysia exceeding RM200,000		*
F. EXPATRIATES	EXPATRIATES
1. Maintain foreign currency accounts in Malaysia	Yes	Needs Approval		No
a. Use funds in account to invest in Malaysian assets	*
b. Transfer funds in this account to accounts abroad	*
2. Maintain ringgit External Accounts in Malaysia
a. Debit the account to pay to any party	*
b. Credit the account with ringgit receipts for salaries, wages or fees	*
c. Credit the account with repatriation of offshore ringgit funds maintained with banks overseas				*
d. convert ringgit in account into foreign currency for repatriation abroad up to the equivalent of salary	*
3. Obtain domestic loans
a. In ringgit from banking institutions in Malaysia up to an aggregate of RM200,000	*
b. Other than (a) above, in ringgit from any resident for the purchase of one residential property in Malaysia and one vehicle loan (both for personal use)	*
c. Other than (b) above, in ringgit from any resident		*
d. In ringgit from banking institutions in Malaysia exceeding RM200,000		*
G. FOREIGN WORKERS	FOREIGN INVESTORS
1. Maintain foreign currency accounts in Malaysia	Yes	Needs Approval		No
a. Use funds in account to invest in Malaysian assets	*
b. Transfer in this account to accounts abroad	*
2. Malaysian ringgit External Accounts in Malaysia
a. Debit the account to pay to any party	*
b. Credit the account with ringgit receipts for salaries, wages or fess	*
c. Credit the account with repatriation of offshore ringgit funds maintained with banks overseas				*
d. Convert ringgit in account into foreign currency for repatriation abroad, up to the equivalent of wages	*
3. Obtain domestic loans
a. In ringgit from banking institutions in Malaysia up to an aggregate of RM200,000	*
b. Other than (a) above, in ringgit from any resident for the purchase of one residential property in Malaysia and one vehicle loan (both for personal use)	*
c. Other than (b) above, in ringgit from any resident		*
d. In ringgit from banking institutions in Malaysia exceeding RM200,000		*
H. MALAYSIANS WORKING ABROAD	FOREIGN INVESTORS
1. Foreign currency accounts to be opened with	Yes	Needs Approval		No
a. any commercial bank in Malaysia
up to USD100,000	*
above USD100,000		*
b. any Labuan offshore bank
UP to USD100,000	*
above USD100,000		*
c. any overseas bank
UP to, USD50,000	*
above USD50,000		*
2. Remittances to the resident's foreign currency accounts
a. In the currency of the account within the limits allowed for such accounts (as per item H 1 above)	*
b. By the resident's employer	*
I. MALAYSIANS STUDYING ABROAD	MALAYSIANS STUDYING ABROAD
1. Foreign currency accounts opened with:	Yes	Needs Approval		No
any commercial bank in Malaysia;	*
any Labuan offshore bank;	*
any overseas bank	*
up to the amount required for one year's tuition fees, accommodation and general living expenses	*
2. Remittances to the resident's foreign currency accounts
a. In the currency of the account up to the amount required for one year's tuition fees, accommodation and general living expenses	*
b. By the resident's parent guardian relative employer loyer	*
3. Remittances to institutes of higher learning in foreign currency for fees and accommodation	*
FURTHER CLARIFICATION
J. COMPUTATION OF THE 12 MONTHS HOLDING PERIOD FOR EXTERNAL ACCOUNT HOLDER BEFORE RINGGIT MAY BE CONVERTED INTO FOREIGN CURRENCY The 12 months would start from 1 September 1998, for non-residents who already have ringgit funds in Malaysia, that is they had deposited funds or had purchased ringgit assets before 1 September 1998. During this one year period, the non-resident is allowed to change the type or form of ringgit asset he chooses to invest in. If the non-resident converts foreign currency into ringgit and makes a ringgit deposit or purchases ringgit assets after 1 September 1998, then the 12 month period would start from the date the ringgit deposit is made or the ringgit asset is purchased. During this one year period, the non-resident is allowed to change the type of form of ringgit asset he chooses to invest in. K. SUBMISSION OF APPLICATION FORMS All applications for exchange control approval should be addressed to: Director Exchange Control Department, Bank Negara Malaysia, Jalan Dato' Onn, 50480 Kuala Lumpur. Telephone nos: 03 - 2988044 ext 7353, 7506, 7739, 7508 Direct lines: 03 - 2910772, 2910894, 2984154, 2987305, 2987304 Facsimile nos: 03 - 2937732, 2912990, 2933791, 2936919
[top]	[ << back ]

|| Back to Contents Page ||