Issued by the Central Bank of Malaysia PENALTY The penalty for offences committed under the Exchange Control Act, 1953 Upon conviction: FINE - Up to RM10,000; JAIL TERM - Not exceeding 3 years; or BOTH   Definition of Resident: Definition of Non-Resident: Definition of External Account: Definition of Ringgit Asset in Malaysia: a. Malaysian citizen b. Malaysian citizen with PR status of another country but resides in Malaysia c. Non-Malaysian citizen with PR status in Malaysia and resides in Malaysia d. Business enterprises/societies established/operating in Malaysia a. Non- Malaysian citizen b. Malaysian citizen with PR status abroad and resides abroad c. foreign embassies, high commissions, supranationals, central banks d. Business entities established abroad A rinngit account with a financial institution in Malaysia which is mainained by a non-resident or where the beneficial owner of the ringgit funds is a non- resident a. Any form of bank deposits b. Land & building c. Malaysian securities whether listed or unlisted)

EXCHANGE CONTROL RULES
A. TRAVELLERS
1. Who should complete the Travellers Declaration Form (TDF)
a. Regardless of the amount of ringgit notes or foreign currency notes/traveller's cheques brought into or taken out of the country
all residents must complete the TDF
all non-residents must complete the TDF
b. Both residents and non-residents must ensure approval is obtained for carrying above the permitted amount
	TRAVELLERS
	Resident		Non- Resident
2. Bringing into Malaysia ringgit or foreign currency on person or in baggage	Yes	Needs Approval	Yes	Needs Approval
a. Bring in foreign currency notes and traveller's cheques of any amount	*		*
b. Bring in ringgit notes and coins up to RM1,000	*		*
c. Bring in ringgit notes, and coins above RM1,000		*		*
3. Taking out of Malaysia ringgit or foreign currency on person or in baggage
a. Take out foreign currency notes and traveller's cheques up to the equivalent of RM10,000	*		Not Applicable
b. Take out foreign currency notes and traveller's cheques exceeding the equivalent of RM10,000		*	Not Applicable
c. Take out foreign currency notes and traveller's cheques up to the amount brought in (with documentary evidence for amount	Not Applicable		*
d. Take out foreign currency notes and traveller's cheques (without documentary evidence for amount brought in)	Not Applicable			*
B. EXPORTERS	EXPORTERS
1. Export proceeds	Yes	Needs Approval		No
a. Received in full within a period of six months from date of shipment/export	*
b. Received in full, after six months from date of shipment/export		*
c. Offset against payments to the 'non-resident		*
2. Receive from non- residents in ringgit for:
a. proceeds for export of goods and services contracted after 1300 hours on 1 September 1998				*
b. drawdown of loan				*
3. Receive from Non-residents in foreign currency.
a. proceeds for export of goods and services	*
b. drawdown of loans which has been approved by Bank Negara Malaysia (BNM) (either under general or specific approval)	*
4. Pay to non- residents in ringgit for:
a. services				*
b. repayment of loan				*
5. Pay to non- residents in foreign currency for:
a. services	*
b. repayment of loan which has been approved by BNM (either under general or specific approval)	*
6. Foreign currency accounts
To retain export proceeds in foreign currency:
a. With commercial banks in Malaysia, up to the following limits USD10 million for exporter with average monthly export receipts exceeding RM20 million; USD5 million for exporter with average monthly export receipts above RM10 million and up to RM20 million; USD3 million for exporter with average monthly export receipts between RM5 million and RM10 million; USD1 million for new exporter or those with average monthly export receipts of less than RM5 million	*
b. With commercial banks in Malaysia, in excess of the above limits		*
c. With banks overseas, including Labuan offshore banks		*
7. Borrowing in foreign currency
a. Obtain short-term (less than 12 months) trade financing facilities in foreign currency from commercial banks in Malaysia	*
b. Other than (a) above, borrow in foreign currency up to the aggregate of RM5 million equivalent from banks in Malaysia, Labuan offshore	*
c. Borrow in foreign currency exceeding the aggregate of RM5 million equivalent.		*
8. Payment to another resident in foreign currency for:
a. Drawdown and repayment of loans from banks in Malaysia (with BNM approval - general/specific)	*
b. All other purposes [other than 8 (a)]		*
C. IMPORTERS	IMPORTERS
1. Pay to non-residents in ringgit for:	Yes	Needs Approval		No
a. import of goods and services contracted after 1300 hours on 1 September 1998				*
b. repayment of loan				*
2. Pay to non- residents in foreign currency for:
a. import of goods and services	*
b. repayment of loan in which has been approved by BNM (either under general or specific approval)	*
3. Receive frm non- residents in ringgit for drawdown of loans				*
4. Receive from non- residents in foreign currency for drawdown of loans which have been approved by BNM (either under general or specific approval)	*
5. Borrowing in foreign currency
a. Obtain short-term (less than 12 months) trade financing facilities in foreign currency from commercial banks in Malaysia	*
b. Other than (a) above, borrow in foreign currency up to the aggregate of RM5 million equivalent from banks in Malaysia, Labuan offshore	*
c. Borrow in foreign currency exceeding the aggregate of RM5 million equivalent.		*
6. Payment to another resident in foreign currency
a. For drawdown and repayment of loans from banks in Malaysia (with BNM approval - general/ specific)	*
b. For all other purposes [other than 6 (a)]		*
7. Foreign currency accounts
a. Convert ringgit into foreign currency for placement pending payment ot non- resident for imports		*
D. MALAYSIAN INVESTORS	MALAYSIAN INVESTORS
1. Payment to non- residents in foreign currency	Yes	Needs Approval		No
a. To invest abroad in any form (e.g. purchase of property, shares), other than placement of deposits
up to RM10,000 per remittance	*
above RM10,000 per remittance		*
b. As placement of deposits		*
2. Receipt from non- residents in foreign curency for:
a. Drawdown of loans which has been approved by BNM (enter under general or specific approval)	*
b. Dividends, interest and profits from investments abroad or proceeds from sale of investment abroad	*
3. Foreign currency accounts
a. To convert ringgit into foreign currency for placement, pending, payment to non-residents for investments		*
b. To retain the foreign currency derived from dividends, interest and profits from investments abroad or proceeds from sale of investment abroad
with commercial banks in Malaysia for any amount, if investor has no domestic borrowing	*
with commercial banks in Malaysia up to USD500,000 if investor has domestic borrowing	*
with Labuan offshore banks up to USD500,000	*
with Labuan offshore banks above USD500,000		*
with overseas banks		*
4. Borrowing in foreign currency
a. Borrow in foreign currency up to the aggregate of RM5 million equivalent from banks in Malaysia, Labuan offshore banks or any non-resident	*
b. Borrow in foreign currency, exceeding the aggregate of RM5 million equivalent.		*
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