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Foreign Exchange Administration

Overview

Malaysia continues to maintain liberal foreign exchange administration (FEA) rules which are part of broad prudential toolkits to maintain monetary and financial stability.

The Bank is committed in ensuring the FEA rules continue to support the competitiveness of the economy through facilitation of a more conducive environment for cross-border economic activities.

 

FEA Rules by Residency

Rules Applicable to Residents:    

“Resident” means –  

  1. A citizen of Malaysia, excluding a citizen who has obtained permanent resident status in a country or a territory outside Malaysia and is residing outside Malaysia;
  2.  A non-citizen of Malaysia who has obtained permanent residency status in Malaysia and is ordinarily residing in Malaysia;
  3.  A body corporate incorporated or established, or registered with or approved by any authority, in Malaysia;
  4.  An unincorporated body registered with or approved by any authority in Malaysia; or
  5.  The Government or any State Government.
Exporters

Exporters can settle trade either in ringgit or foreign currency. Exporters must repatriate export proceeds (goods) back to Malaysia in full value within six months from the date of export.

Exporters can retain up to 25% or up to their foreign currency obligations plus eligible foreign currency payables and convert the remaining balance into ringgit. For exporters with foreign currency obligations, exporters can retain export proceeds in Trade Foreign Currency Account up to the value of six-month import or foreign currency loan obligations.

Exporters with annual gross export of goods exceeding RM50 million equivalent in the preceding year are required to submit the quarterly export of goods report to BNM within 21 days after the end of each reporting quarter.

Once qualified for reporting, the resident exporter shall continue reporting to BNM whether or not there is any export of goods in the subsequent quarters.

Further Information

  1. Notice 7 - Export of Goods [PDF]
  2. Supplementary Notice - Measures to Promote the Development of Malaysian Financial Market 
  3. Supplementary Notice (No. 4) on FEA rules [PDF]
  4. Supplementary Notice (No. 5) on Foreign Exchange Administration Rules [PDF]
  5. Infographic on Export of Goods [PDF]
  6. Policy on Export of Goods Report Submission [PDF]
  7. Frequently Asked Questions (FAQs) [PDF]

Application Submission

Resident exporters must apply before undertaking transactions other than stated above through online submission portal. Relevant application forms for reference and user guides are listed below. Please do not submit hardcopy application.

Application

Document Reference

Extend repatriation of receipts and export proceeds

Form 5E [PDF]
Form 5E – User Guide [PDF]
Form 5E – Information Required [PDF]

Net off or write off export proceeds

Form 5N [PDF]
Form 5N – User Guide [PDF]
Form 5N – Information Required [PDF]

Retain export proceeds overseas

Form 7C [PDF]
Form 7C – User Guide [PDF]
Form 7C – Information Required [PDF]

Offsetting arrangement

Form 11 [PDF]
Form 11 – User Guide [PDF]
Form 11 – Information Required [PDF]

 

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Investing Abroad

Residents without domestic ringgit borrowing are free to invest in foreign currency assets onshore and abroad.

“Domestic ringgit borrowing” is defined as borrowing in ringgit obtained by a resident from another resident. For a resident entity, the borrowing shall exclude borrowing from another resident entity within its group of entities with parent-subsidiary relationship and miscellaneous expenses such as sundry and employees’ travel expenses

Residents with domestic ringgit borrowing are free to invest:

  • Up to RM1 million equivalent in aggregate per calendar year on individual basis; or
  • Up to RM50 million equivalent per calendar year in aggregate on group basis (include resident entities within the group with parent-subsidiary relationship);

    “parent-subsidiary relationship” means direct or indirect relationship where a resident entity is – (a) a holding entity or ultimate holding entity of another resident entity; (b) a subsidiary of another resident entity; or (c) a subsidiary of a non-resident entity, where the ultimate holding entity is a resident entity;

    sourced from conversion of ringgit and Trade Foreign Currency Account.

A licensed onshore bank, a licensed insurer or licensed takaful operator is free to invest abroad for its own account.

A resident licensed unit trust companies, entities offering collective investment schemes including closed-end funds, fund managers and licensed insurers are free to invest abroad on behalf of their resident and non-resident clients as follows:

  • Up to 100% of Net Asset Value (NAV) or total funds belonging to resident clients without domestic ringgit borrowing and non-resident clients in conventional and Shariah compliant assets; or
  • Up to 50% of NAV or total funds belonging to resident clients with domestic ringgit borrowing in conventional assets.

Licensed takaful operators are free to undertake investment abroad up to 100% of the NAV of ringgit or foreign currency denominated investment-linked funds belonging to their clients.

“investment in foreign currency asset onshore” means making of any payment in Malaysia for –

  • purchase of foreign currency-denominated security or Islamic security offered in Malaysia by a resident as approved by the Bank;
  • purchase of foreign currency-denominated financial instrument or Islamic financial instrument offered in Malaysia by a resident as approved by the Bank; or
  • placement into foreign currency account with a licensed onshore bank other than placement for investment abroad;

Further Information

  1. Notice 3 – Investment in Foreign Currency Asset [PDF]
  2. Summary of Investment in Foreign Currency Asset [PDF]
  3. Frequently Asked Questions (FAQs) [PDF]

Application Submission

Resident entities and individuals must apply before undertaking transactions other than stated above through online submission portal. Relevant application forms for reference and user guides are listed below. Please do not submit hardcopy application. 

 

Application

Document Reference

Invest abroad beyond permissible limit by lending in foreign currency to non-residents

Form 6B – Investment Abroad (Foreign currency borrowing by non-resident from resident) [PDF]

Form 6B – User Guide [PDF]

Form 6B – Information Required [PDF]

Invest abroad beyond permissible limit in equity

Form 9A – Investment Abroad (Equity) [PDF]

Form 9A – User Guide [PDF]

Form 9A – Information Required [PDF]

Invest abroad beyond permissible limit in foreign currency assets other than equity

Form 9C – Investment Abroad (Others) [PDF]

Form 9C – User Guide [PDF]

Form 9C – Information Required [PDF]

 


Borrowing is defined as any credit facility, financing facility, trade guarantee or guarantee for payment of goods, redeemable preference share, Islamic redeemable preference share, private debt security, Islamic private debt security other than –

  • trade credit terms extended by a supplier for all types of goods and services;
  • forward contract with a licensed onshore bank or international Islamic bank, excluding a contract that involves the exchanging or swapping of ringgit or foreign currency debt obligation with another foreign currency debt obligation or the exchanging of foreign currency debt obligation with a ringgit debt obligation;
  • financial guarantee and non-financial guarantee;
  • operational leasing facility;
  • factoring facility without recourse;
  • a credit facility or financing facility obtained by a resident individual from a resident to purchase one residential property and one vehicle; or
  • credit card and charge card facility obtained by a resident individual from a resident.

 

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Foreign Currency Borrowing in Malaysia and from Abroad

By resident entity    

“Entity” means any corporation, statutory body, local authority, society, cooperative, limited liability partnership and any other body, organisation, association or group of persons, whether corporate or unincorporate, in or outside Malaysia and also includes the Federal Government, State Government or any other governments

Resident entities are free to borrow any amount in foreign currency (FC) from:

  • Licensed onshore banks
  • Resident or non-resident entities within its group of entities

    “Group of entities” means a resident entity’s –

    • ultimate holding entity;
    • parent or head office;
    • branch;
    • subsidiary where the resident entity owns more than 50% of shares in the subsidiary;
    • associate company where the resident entity owns between 10% and 50% of shares in the associate company; or
    • sister company where the resident entity and its sister company have common shareholder.
  • Resident or non-resident direct shareholders
  • Another resident through issuance of FC debt securities

Resident entities may borrow in FC up to a prudential limit of RM100 million equivalent in aggregate from non-resident financial institutions and other unrelated non-residents, including through issuance of securities or Islamic securities denominated in FC.

By resident individual                                             
A resident individuals, sole proprietor or general partnership may obtain up to a limit of RM10 million equivalent in aggregate from licensed onshore banks and non-residents other than immediate family members.

Further Information

  1. Notice 2 - Borrowing and Guarantee [PDF]
  2. Notice 5 - Security, Islamic Security, Financial Instrument or Islamic Financial Instrument [PDF]
  3. Information Note on Sukuk and Bonds
  4. Frequently Asked Questions (FAQs) [PDF]

Application Submission
Resident entities and individuals must apply before undertaking transactions other than stated above through online submission portal. Relevant application forms for reference and user guides are listed below. Please do not submit hardcopy application. 

Application

Document Reference

Borrowing beyond permissible limit from non-resident

Form 10A [PDF]
Form 10A – User Guide [PDF]
Form 10A – Information Required [PDF]

Changes to the approved borrowing beyond permissible limit from non-resident:

  1. Reduction of amount
  2. Change of purpose
  3. Change of other Terms and Conditions

Form 10D [PDF]
Form 10D – User Guide [PDF]
Form 10D – Information Required [PDF]

Borrow beyond permissible limit through issuance of redeemable preference shares to non-residents

Form 10F [PDF]
Form 10F – User Guide [PDF]
Form 10F – Information Required [PDF]

Changes to the approved borrowing beyond permissible limit through issuance of redeemable preference shares to non-residents

  1. Reduction of amount
  2. Change of purpose
  3. Change of other Terms and Conditions

Form 10G [PDF]
Form 10G – User Guide [PDF]
Form 10G – Information Required [PDF]

 

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Ringgit Borrowing from Non-Residents

By resident entity    
Resident entities are free to borrow:

“Entity” means any corporation, statutory body, local authority, society, cooperative, limited liability partnership and any other body, organisation, association or group of persons, whether corporate or unincorporate, in or outside Malaysia and also includes the Federal Government, State Government or any other governments

  • Any amount of ringgit to finance activities in the real sector in Malaysia from either non-resident entities within its group of entities or non-resident direct shareholders;

    activities in the real sector” means activities relating to –

    • the production or consumption of goods or services, other than –
      • activities in the financial services sector, whether Islamic or otherwise;
      • the purchase of security or Islamic security;
      • the purchase of financial instrument or Islamic financial instrument; or
    • the construction or purchase of a residential or commercial propoerty excluding the purchase of land only;
  • Up to RM1 million in aggregate from any other non-resident, other than a non-resident financial institution, for use in Malaysia; and
  • Any amount through issuance of tradable securities or Islamic securities denominated in ringgit in Malaysia to non-residents.

By resident individual                                             
Resident individuals are free to obtain:

  • Any amount of ringgit from non-resident immediate family members; and

    “immediate family members” in relation to an individual means his spouse, parents, children or siblings

  • Up to RM1 million in aggregate from other non-residents, other than a non-resident financial institution for use in Malaysia

Further Information

Application Submission
Residents must apply before undertaking transactions other than stated above through online submission portal. Relevant application forms for reference and user guides are listed below. Please do not submit hardcopy application. 

Application

Document Reference

Borrowing beyond permissible limit from non-resident

Form 10A [PDF]
Form 10A – User Guide [PDF]
Form 10A – Information Required [PDF]

Changes to the approved borrowing beyond permissible limit from non-resident:

  • Reduction of amount
  • Change of purpose
  • Change of other Terms and Conditions

Form 10D [PDF]
Form 10D – User Guide [PDF]
Form 10D – Information Required [PDF]

Borrow beyond permissible limit through issuance of redeemable preference shares to non-residents

Form 10F [PDF]
Form 10F – User Guide [PDF]
Form 10F – Information Required [PDF]

Changes to the approved borrowing beyond permissible limit through issuance of redeemable preference shares to non-residents

  • Reduction of amount
  • Change of purpose
  • Change of other Terms and Conditions

Form 10G [PDF]
Form 10G – User Guide [PDF]
Form 10G – Information Required [PDF]

 

Contact Us

 

Financial Guarantee

Obtained by resident from non-resident      
Residents are free to obtain financial guarantee of:

  • any amount from non-resident within group of entities (other than financial institution); and
  • up to RM100 million equivalent in aggregate from other non-residents.

Issued by resident to non-resident     
Residents are free to issue financial guarantee up to RM50 million equivalent in aggregate to secure borrowing (other than inter-group borrowing) obtained by a non-resident entity.

Any permitted financial guarantee exceeding RM50 million equivalent in aggregate shall be registered with BNM no later than seven (7) business days after issuing or obtaining the financial guarantee by submitting application Form A via online application submission portal.

Further Information

  1. Notice 2 - Borrowing and Guarantee [PDF]
  2. Frequently Asked Questions (FAQs) [PDF]
  3. Summary of Rules on Financial Guarantee [PDF]

Application Submission
Residents must apply before undertaking transactions other than stated above through online submission portal. Relevant application forms for reference and user guides are listed below. Please do not submit hardcopy application.

Application

Document Reference

Financial Guarantee

Form A [PDF]
Form A – User Guide [PDF]
Form A – Information Required [PDF]

Changes to Financial Guarantee:

  • Renewal
  • Extension
  • Cancellation
  • Change amount

Form B [PDF]
Form B – User Guide [PDF]

Financial Guarantee Called-Upon

Form C [PDF]
Form C – User Guide [PDF]

Consequential Loan to Non-Resident arising from Guarantee Terms and Conditions

Report 6 [PDF]
Report 6 – User Guide [PDF]

Consequential Debt of Resident arising from Guarantee Terms and Conditions

Report 10 [PDF]
Report 10 – User Guide [PDF]

 

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Payment in Foreign Currency

Payment in foreign currency between residents    
Residents are free to pay or receive foreign currency (FC) to or from another resident for the following:

  • A transaction between the resident and a licensed investment bank, a licensed international takaful operator or an international currency business unit of a licensed takaful operator in carrying out its foreign currency business, as the case may be;
  • Settlement for the purchase of sale of any security or Islamic security, financial instrument or Islamic financial instrument denominated in FC approved by BNM and FC derivatives;
  • Any purpose between immediate family members;

    “immediate family members” in relation to an individual means his spouse, parents, children or siblings

  • Education or employment outside Malaysia;
  • Settlement of –
    • service fees that are embedded in and directly deducted from an approved foreign currency denominated assets onshore offered by a non-bank resident;
    • a derivative denominated in foreign currency transacted on a specified exchange under Capital Markets and Services Act 2007 between the resident and a resident futures broker excluding exchange rate derivatives;
    • a commodity murabahah transaction between residents undertaken through a resident commodity trading service provider; or
    • a domestic trade in goods or services between a resident entity with foreign currency export earnings (payor) and a resident entity which is a Small and Medium Enterprise (SME) and a net importer (payee), subject to specified conditions.

Non-SME resident net importers may apply for approval by submitting a formal written application to Foreign Exchange Administration Department.

Payment in foreign currency between resident and non-resident
Residents are free to make or receive foreign currency payment to or from non-residents for any purpose, except for –

  1. foreign currency derivatives offered by the resident unless it is approved by BNM or allowed under Part B of Notice 5;
  2. foreign currency derivatives offered by the non-resident; or
  3. ringgit derivatives unless it is approved by BNM or allowed under Part B of Notice 5.

However, foreign currency payment relating to (2) above can still be undertaken for –

  • foreign currency derivatives, except for ringgit exchange rate derivatives,  purchased by a licensed onshore bank for its own account;
  • foreign currency interest rate swap between a resident and Labuan banks to manage interest rate exposure arising from foreign currency borrowing; or
  • foreign currency derivatives, except for exchange rate derivatives, offered on a Specified Exchange stipulated under the Capital Markets and Services Act 2007 [Act 671] undertaken through a resident futures broker by a resident with a firm commitment.

Further Information

 

Contact Us

 

Hedging

Residents are free to buy or sell ringgit against foreign currency with a licensed onshore bank (excluding international Islamic banks) on spot basis for any purpose or forward basis based on anticipatory or firm commitment.

For foreign exchange (FX) transactions arising from payment of foreign currency obligations, the selling of ringgit against foreign currency by residents are free to buy or sell ringgit against foreign currency with a licensed onshore bank shall be based on the following –

  1. spot basis up to the aggregate of its 6 months foreign currency obligations; or
  2. forward basis up to –
    • the underlying tenure of its foreign currency current account obligations;
    • 12 months of its foreign currency loan repayment obligations,

at the time of entering into the contract to buy foreign currency against ringgit.

There are various flexibilities accorded to resident to enhance their FX risk management capacity -

  • Hedging on behalf: Resident entities are free to hedge on behalf of its resident and non-resident group of entities with licensed onshore bank.
  • Hedging without documentary evidence: Residents are free to hedge their foreign currency exposure and cancel their hedging position for selected currency pairs with a licensed onshore bank without documentary evidence up to an aggregate net open position (NOP) limit of RM6 million per licensed onshore bank, subject to one-off declaration of hedging intent.
  • Corporate hedging framework: Resident entities registered with BNM are free to unwind up to 100% of its forward contracts entered with a licensed onshore bank where  the initial forward contract was entered with.
  • Dynamic hedging framework: Resident institutional investors registered with BNM can actively manage FX exposure arising from underlying foreign currency denominated assets without the need to show proof of document. The flexibility under the dynamic hedging programme is availed upon registration with the Bank.

Further Information

  1. Notice 1 - Dealing in Currencies, Gold and Other Precious Metals [PDF]
  2. Supplementary Notice (No. 2) on FEA rules 
  3. Supplementary Notice (No. 5) on FEA rules [PDF]
  4. Frequently Asked Questions (FAQs) [PDF]

Application Submission
Residents can register for corporate hedging framework and dynamic hedging framework by submitting the following forms:

  1. Forward Market Participation Form – Corporate Entities for Corporate Hedging Framework [PDF]
  2. Forward Market Participation Form – Institutional Investors for Dynamic Hedging Framework [PDF]


Rules Applicable to Non-Residents:    

“Non-resident” means –  

  1. Any person other than resident;
  2. An overseas branch, a subsidiary, regional office, sales office or representative office of a resident company;
  3. Embassies, Consulates, High Commissions, supranational or international organisations; or
  4. A Malaysian citizen who has obtained permanent resident status of a country or territory outside Malaysia and is residing outside Malaysia.
Investing in Malaysia

Non-resident investors are free to –

  • undertake any type of investment in ringgit asset or foreign currency asset in Malaysia (direct or portfolio investment) without any restriction;
  • open a ringgit account or foreign currency account with a licensed onshore bank. Funds are free to be remitted into and out of such accounts, subject to normal due diligence process by a licensed onshore bank; and
  • repatriate divestment proceeds, profits, dividends or any income arising from investments in Malaysia. Repatriation shall be in foreign currency.

Non-resident investors also have the flexibility to hedge foreign exchange exposures arising from their investments in Malaysia either via a licensed onshore bank or an Appointed Overseas Office (AOO). Further details on AOO is covered in Hedging by Non-Resident.

Further Information

  1. Notice 3 – Investment in Foreign Currency Asset [PDF]
  2. Supplementary Notice – Measures to Promote the Development of Malaysian Financial Market 
  3. Frequently Asked Questions (FAQs) [PDF]
  4. Notice 5 - Security, Islamic Security, Financial Instrument or Islamic Financial Instrument [PDF]

 

Contact Us

 

Borrowing in Malaysia

Borrowing in foreign currency
Non-resident entities are free to obtain foreign currency borrowing from licensed onshore banks to use in or outside Malaysia.

“Entity” means any corporation, statutory body, local authority, society, cooperative, limited liability partnership and any other body, organisation, association or group of persons, whether corporate or unincorporate, in or outside Malaysia and also includes the Federal Government, State Government or any other governments

Non-residents are free to issue foreign-currency denominated sukuk/bonds in Malaysia for use in or outside Malaysia.

Borrowing in ringgit
Non-resident other than financial institution is free to borrow:

  1. Any amount in ringgit from licensed onshore banks (excluding licensed International Islamic banks) to finance real sector activities in Malaysia.

    activities in the real sector” means activities relating to –

    • the production or consumption of goods or services, other than –
      • activities in the financial services sector, whether Islamic or otherwise;
      • the purchase of security or Islamic security;
      • the purchase of financial instrument or Islamic financial instrument; or
    • the construction or purchase of a residential or commercial propoerty excluding the purchase of land only;
  2. Any amount from resident companies and individuals to finance real sector activities in Malaysia;
  3. Any amount from immediate family members for any purpose;
  4. Any amount from employer in Malaysia under the employment terms and conditions for use in Malaysia;
  5. Any amount of margin financing from -
    • resident stock-broking corporate; or
    • licensed onshore banks with stockbroking license

    to purchase securities or financial instruments traded on Bursa Malaysia.

  6. Up to attained cash surrender value of any life insurance policy or family takaful certificate purchased from licensed insurer or a licensed takaful operator

Non-resident custodian bank or non-resident stock broking corporation is free to obtain overdraft facilities from licensed onshore banks (excluding licensed International Islamic banks) to facilitate settlement of share or ringgit traded:

  1. On Bursa Malaysia; or
  2. Through the Real Time Electronic Transfer of Funds and Securities System (RENTAS),

to avoid settlement failure due to inadvertent delays of payment by non-residents.

Further Information

  1. Notice 2 – Borrowing and Guarantee [PDF]
  2. Notice 5 – Security, Islamic Security, Financial Instrument or Islamic Financial Instrument [PDF]
  3. Frequently Asked Questions (FAQs) [PDF]

Application Submission
Residents must apply before undertaking transactions other than stated above through online submission portal. Relevant application forms for reference and user guides are listed below. Please do not submit hardcopy application. 

Application

Document Reference

Borrow ringgit beyond permissible limit

Form 6A – Ringgit Borrowing by Non-Residents [PDF]
Form 6A – User Guide [PDF]
Form 6A – Information Required [PDF]

 

Contact Us

 

Payment in Ringgit

Non-resident is free to make or receive payment in ringgit in Malaysia, to or from a resident or a non-resident, for the following purposes:

Purpose of Use and Source of Funds

Between Resident and Non-Resident

Between
Non-Resident

Settlement of a ringgit asset including any income and profit due from the ringgit asset

Settlement of trade in goods

Settlement of services, in any manner

Income earned or expense incurred, in Malaysia

Settlement of a commodity murabahah transaction between a resident and non-resident participant undertaken through a resident commodity trading service provider

Settlement of reinsurance for domestic insurance business or retakaful for domestic takaful business between a resident and a person licensed to undertake Labuan insurance or takaful business

 

Settlement of a non-financial guarantee denominated in ringgit issued by a person licensed to undertake Labuan banking business in favour of a resident

“non-financial guarantee” means any guarantee other than a financial guarantee, and includes a performance bond, tender bond, guarantee for the supply of goods or services or shipping guarantee in which such guarantee was issued or obtained not for purposes of securing borrowing

 

For any purpose between immediate family members

Payment on behalf of non-resident clients using funds in the external account is allowed as follows:

“External account” means an account in ringgit opened with any financial institutions in Malaysia –

  • by a non-resident –
    • individually;
    • jointly with another non-resident;
    • jointly with a resident other than –
      • for a joint venture in Malaysia;
      • a husband and wife; or
  • by a resident who operates the account in trust for or on behalf of a non-resident;

By

For the purpose of

Non-resident financial institution

Settlement of international trade of goods or services with a resident.

Non-resident intermediary

Settlement of ringgit assets.

Payments or receipts into or from an External Account is subjected to RM10,000 per account per day. The limits shall not apply to the following:

  1. any cash withdrawal over-the-counter from an External Account.
  2. a consulate, a high commission, an embassy, an individual participating in the Malaysia My Second Home Programme, or an individual who is working or studying in Malaysia including the individual’s spouse, child or parent who is staying in Malaysia.
  3. where the uses and sources of funds are permitted in accordance with the requirements above (documentary evidence should be provided to financial institutions).

Further Information

  1. Notice 4 – Payments [PDF]
  2. Frequently Asked Questions (FAQs) [PDF]

 

Contact Us

 

Hedging

Malaysian onshore foreign exchange (FX) market is easily accessible and open to non-residents to undertake risk management activities to hedge their FX or price risks. To facilitate better access to the onshore market, non-residents have the flexibility to hedge their ringgit exposures either via a licensed onshore bank or an Appointed Overseas Office (AOO).

A non-resident is free to conduct the following FX transactions via a licensed onshore bank or an AOO:

  • Buy or sell foreign currency against ringgit on spot and forward basis;
  • Terminate a forward contract initially entered for permitted underlying by non-resident corporate entity upon registration with BNM;

    Under the Hedging Framework for Corporate Entities

  • Buy or sell foreign currency against ringgit using a forward contract for dynamic hedging by a non-resident institutional investor, including custodian/trust bank on behalf of its non-resident client, upon registration with BNM;

    Under the Dynamic Hedging Framework for Institutional Investors

  • Buy or sell foreign currency against ringgit on forward basis by a non-resident financial institution on behalf of its non-resident clients with MYR custody relationship for settlement of ringgit asset on passive (upon registration with BNM for transaction with AOO only) or dynamic (upon approval by BNM) hedging basis;
  • Buy or sell foreign currency against ringgit on forward basis by a non-resident financial institution on behalf of its non-resident clients for settlement of international goods and services with a resident;
  • Buy or sell foreign currency against ringgit on forward basis by a non-resident intermediary on behalf of its non-resident clients for settlement of ringgit asset.
  • Buy or sell foreign currency against ringgit on spot or forward basis by a non-resident entity on behalf of related entities.
  • Buy or sell foreign currency against ringgit using a forward contract for dynamic hedging by a uy or sell foreign currency against ringgit using a forward contract by a non-resident non-financial institution market participant to hedge FX exposures arising from its underlying Crude Palm Oil Futures and Options on Crude Palm Oil Futures contracts undertaken on Bursa Malaysia Berhad upon registration with BNM; or

    Under the Forward Hedge of Crude Palm Oil Futures and Options on Crude Palm Oil Futures framework

  • Hedging of ringgit-denominated interest rate derivative through a licensed onshore bank or an AOO.

Non-resident institutional investors (exclude banks and securities companies) may register for the hedging programme by submitting Forward Market Participation Form to BNM.

Further Information

  1. Notice 1 – Buying and Selling of Currency [PDF]
  2. Dynamic Hedging Programme for Institutional Investors [PDF]
  3. Supplementary Notice – Measures to Promote the Development of Malaysia Financial Market 
  4. Supplementary Notice (No. 2) – Measures to Promote the Development of Malaysia Financial Market 
  5. Supplementary Notice (No. 3) – Measures to Promote the Development of Malaysia Financial Market 
  6. Supplementary Notice (no. 4) – Measures to Promote the Development of Malaysia Financial Market [PDF]
  7. Supplementary Notice (No. 6) – Measures to Promote the Development of Malaysia Financial Market [PDF]
  8. List of financial institutions under the Appointed Overseas Office (AOO) Framework:
  9. Frequently Asked Questions (FAQs) [PDF]

 


 

FEA Rules by Activity
  1. Preamble [PDF]
  2. Definitions and Declaration on Entities Created, Incorporated, etc. in Labuan [PDF]
  3. Notice 1 - Dealings in Currency, Gold and Other Precious Metals [PDF]
  4. Notice 2 - Borrowing and Guarantee [PDF]
  5. Notice 3 - Investment in Foreign Currency Asset [PDF]
  6. Notice 4 - Payments [PDF]
  7. Notice 5 - Security, Islamic Security, Financial Instrument or Islamic Financial Instrument [PDF]
  8. Notice 6 - Import and Export of Currency [PDF]
  9. Notice 7 - Export of Goods [PDF]
  10. Supplementary Notice - Measures to Promote the Development of Malaysian Financial Market 
  11. Supplementary Notice (No. 2) - Measures to Promote the Development of Malaysian Financial Market
  12. Supplementary Notice (No. 3) - Measures to Promote the Development of Malaysian Financial Market 
  13. Supplementary Notice (No. 4) on Foreign Exchange Administration Rules [PDF]
  14. Supplementary Notice (No. 5) on Foreign Exchange Administration Rules [PDF]
  15. Supplementary Notice (No. 6) on Foreign Exchange Administration Rules and Amendment to the Definitions of Notices on Foreign Exchange Administration Rules [PDF]
  16. Liberalisation of Foreign Exchange Administration Policies
  17. Dealings with Specified Persons and in Restricted Currencies [PDF]

Labuan as non-resident

All Labuan entities are deemed as non-residents under the FEA pursuant to sections 214 and 215 of the Financial Services Act 2013 and sections 225 and 226 of the Islamic Financial Services Act 2013.

Carrying physical notes

  • No restriction for resident and non-resident to carry in and out foreign currency notes up to any amount and ringgit notes up to USD10,000 equivalent.  
  • However, currency declaration to carry physical notes of both currencies more than USD10,000 equivalent is required. For more information on the declaration, please refer to Malaysian Customs Department’s website at www.customs.gov.my

Dealing with specified person
  • A resident or a non-resident in Malaysia shall not undertake or engage in any dealing or transaction with the specified person or with any person in any dealing or transaction using or involving the restricted currency.

    specified person” means –

    • the State of Israel or its residents; or
    • any entity owned or controlled, directly or indirectly, by the State of Israel or its residents including any authority or agency of the State of Israel in whatever name or style;

    restricted currency” includes -

    • currency notes or coins which are legal tender in the State of Israel;
    • any right to receive such currency or coins –
      • in respect of any credit or balance at a licensed onshore bank or any other similar institution in or outside Malaysia; or
      • from any person in or outside Malaysia; or
    • any document or device of kind intended to enable the person to whom the document or device is issued to obtain such currency from another person on the credit of the person issuing it, and in particular, any traveller’s cheque or other draft or letter of credit so intended;
  • A licensed onshore bank shall open an account for the specified person or in the restricted currency with the approval of the Bank.


  • Any requests for dealing with specified persons and/or restricted currency shall be submitted to –

Director
Foreign Exchange Administration Department
Bank Negara Malaysia
Jalan Dato' Onn 
50480 Kuala Lumpur
Email:   Product_Committee_JPPA@bnm.gov.my 
Fax:  60 (3) 2693 7732 

 

 

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