tradingventure wrote:Exchange Control Act 1953
LAWS OF MALAYSIA
Exchange Control Act 1953
Revised - 1969... aduh! Sia belum lahir lagi tu
Update terkini. Revised 2005
Statement bank negara pada 2005 tentang forex (hukum foex dari segi undang2)
Thursday March 24, 2005
Bank Negara relaxes rules for overseas investment
BY IZATUN SHARI
LUMPUR: Malaysian individuals and corporations who are debt-free can
now take any amount of their money abroad effective April 1.
Previously, individuals could only repatriate up to RM10,000 overseas without obtaining permission from Bank Negara.
Credit card debt and housing and car loans are not considered as debt or credit facilities.
relaxation for investment abroad, announced by Bank Negara governor Tan
Sri Dr Zeti Akhtar Aziz yesterday, is part of the central bank's
continuous effort to reduce the regulatory cost of doing business and
enhance efficiency of the delivery system
She also said that unit
trust companies would be allowed to invest up to 30% of the net asset
value overseas from the current 10%, and fund managers could invest any
amount of money overseas belonging to Malaysians and foreigners that
did not have domestic credit facilities.
Speaking during the release
of the Bank Negara 2004 annual report, Zeti said individuals with debts
could invest any amount of their foreign currency funds or convert
ringgit up to RM100,000 per annum for overseas investment.
see the move as a way of utilising the vast amount of money that is
circulating throughout the economy or sitting as deposits in banks.
said that present foreign exchange reserves, which amounted to
US$73.2bil (RM278bil), had enabled Bank Negara to make these changes.
Among the other measures announced by Bank Negara are:
education or overseas employment purposes, individuals can covert up to
US$150,000 (RM570,000) for credit into foreign currency accounts (FCA)
onshore or offshore in Labuan and up to US$50,000 (RM190,000) into
INDIVIDUALS are free to open FCA onshore and offshore without getting Bank Negaraâ€™s permission;
without any domestic debts are free to convert unlimited amount of
their ringgit funds for credit into their FCA while corporations with
debt are allowed to convert up to RM10mil in a calendar year into their
THE aggregate limit for foreign currency borrowing by
individuals is increased to RM10mil while corporations may now obtain
foreign currency credit facilities up to RM50mil; and
THE foreign currency borrowing may be used to finance overseas investment up to RM10mil.
the purpose of compiling data on the inflow and outflow of funds,
transactions involving investments abroad and foreign currency credit
facilities would continue to be reported to Bank Negara through a
Transactions that need to be registered
include remittance of funds from Malaysia that exceeds RM50,000 and the
procurement of foreign currency credit facilities exceeding RM1mil.
Source >> http://thestar.com.my/news/story.asp?fi
Thursday April 7, 2005
Liberalisation of the Foreign Exchange Administration Rules
part of Bank Negara Malaysiaâ€™s continuous effort to further enhance the
business environment, increase efficiency of the regulatory delivery
system and promote wider risk management options, further relaxations
of the foreign exchange administration rules are made with effect from
1 April 2005.
In addition, Bank Negara Malaysia has also reviewed
and further liberalised the fixed deposit rate placed by non-SME
corporations and non-residents with immediate effect.
Liberalisation of foreign exchange administration rules
Effective 1 April 2005, the following foreign exchange administration rules and procedures are liberalised further.
A. Overseas investment
give greater flexibility for overseas investment, changes are made to
the thresholds for investment abroad, including extension of credit
facilities to non-residents and placement of funds by residents from
the current limit of RM10,000 to the following :-
domestic credit facilities are free to invest abroad in foreign
currency, to be funded either from their own foreign currency or from
conversion of ringgit funds.
Corporations with domestic credit
facilities are also free to use their foreign currency funds or convert
ringgit up to RM10 million per annum for investment in foreign currency
assets. These corporations must have a minimum shareholdersâ€™ fund of
RM100,000 and must be operating for at least 1 year.
with domestic credit facilities may invest abroad any amount of their
foreign currency funds or convert ringgit up to RM100,000 per annum for
The threshold for investing abroad funds attributed
to residents by a unit trust company is increased to 30%, from the
current 10%, of the Net Asset Value of all resident funds managed by
the unit trust company. There continues to be no restriction on
investment abroad for funds attributed to non-resident clients.
managers may now invest abroad any amount of funds belonging to
non-resident clients and resident clients that do not have any domestic
credit facilities. They are also free to invest up to 30% of funds of
resident clients with domestic credit facilities. Currently they may
invest only 10% of resident funds, irrespective whether the resident
clients have any domestic credit facilities.
B. Foreign Currency Account (FCA)
Rules on retention of foreign currency by residents are further liberalised :- Residents are free to open FCA onshore or offshore (except for export FCA). No specific prior permission is required.
There is no limit on the amount of foreign currency funds a resident is able to retain onshore or offshore.
resident without any domestic credit facilities is free to convert any
amount of his ringgit funds for credit into his FCA maintained onshore
A resident corporation with domestic credit facilities
is allowed to convert ringgit up to RM10 million in a calendar year for
credit into its FCA.
A resident individual with domestic credit facilities is also allowed to convert ringgit for credit into FCA as follows-
For education or overseas employment purposes
Up to USD150,000 for credit into onshore FCA or FCA maintained with offshore banks in Labuan; and
Up to USD50,000 for credit into overseas FCA.
For other purposes
Up to RM100,000 per annum.
may now retain any amount of their foreign currency export proceeds
onshore with licensed banks. The current limits of between USD30
million and USD100 million are abolished. All export proceeds continue
to be required to be repatriated to Malaysia onshore.
C. Foreign Currency Credit Facilities
enhance access to foreign currency funding, limits for foreign currency
credit facilities that can be obtained by residents from non-residents,
licensed onshore banks and licensed merchant banks have been increased
as follows :-
Resident corporation, on a per corporate group
basis, may now obtain foreign currency credit facilities up to the
aggregate of RM50 million equivalent. The foreign currency borrowing
may be used to finance overseas investment up to RM10 million
The aggregate limit for foreign currency borrowing by
individuals is also increased from RM5 million to RM10 million
equivalent. The funds may be used for any purposes, including financing
To facilitate better and more
efficient risk management of currency exposure, rules on hedging are
also liberalised further to allow residents as well as non-residents to
enter into hedging arrangements with licensed onshore banks as follows
Any committed or anticipatory current account transactions.
Any committed capital account payments, including loan repayment due within 24 months, and committed receipts.
Foreign currency exposures of approved overseas investment (equity hedge).
Any inflow or outflow of funds for firm committed transactions.
E. Domestic borrowing by Non-Resident Controlled Companies
rules for domestic borrowing by Non-Resident Controlled Companies are
fully liberalised by removing the current RM50 million limit and the
3:1 gearing ratio requirement.
Prior registration for statistical purposes
purpose of compiling balance of payment statistics on the inflow and
outflow of funds from the country, transactions involving investment
abroad, hedging and foreign currency credit facilities would continue
to be reported to Bank Negara Malaysia through a registration process.
In summary, the following transactions under the liberalised rules are
required to be registered-
Remittance of funds exceeding RM50,000 equivalent from Malaysia for investment abroad;
of foreign currency credit facilities exceeding RM1 million; and
Proposal by resident to enter into forward foreign exchange contracts
to hedge current account transactions on anticipatory basis and all
transactions under financial account transactions exceeding the
equivalent of USD10 million.
Bank Negara Malaysia has also
launched the Exchange Control Approval and Monitoring System (ECAMS)
for online submission of application on foreign exchange administration
transactions. Information on the foreign exchange administration rules
and the application/registration forms for online submission may be
obtained on the Bank Negara Malaysia website at http://www.bnm.gov.my/fxadmin
Liberalisation on fixed deposit rates
immediate effect, fixed deposits placed by non-SME corporations and
non-residents, regardless of the amount, will be on a full-negotiated
basis and no longer subject to the floor rates prescribed by Bank
Fixed deposits of up to RM1 million placed by
individuals, SMEs and other depositors for tenures of 1 to 12 months
will continue to be subject to the prescribed floor rates.
The prescribed floor rates remain unchanged at 3% per annum for 1-month and 3.70% per annum for 12-month deposits.
information can be obtained by contacting the helpdesk at 03-2693 2617
or 03-2691 6606 which is open from 24 March 2005 to 30 April 2005
during office hours (9.00 am to 5.00 pm) on Monday to Friday.
of the public may also forward their enquiries via e-mail address:
ecams_jppa @bnm.gov.my or fax : 03-2694 3991, 03- 2691 3266 or 03-2693
Bank Negara Malaysia 23 March 2005
Source >> http://thestar.com.my/news/story.asp?file=/2005/4/7/business/20050407160002&sec=business