On 1 September 1998, the Government announced new exchange control measures to curb the internationalisation of the ringgit and to regain monetary policy independence. The aim was to eliminate the availability of offshore ringgit funds for speculative activities, and in the process, promote a stable ringgit exchange rate, prevent excessive flows of short-term capital and create a conducive environment for economic recovery.

In line with the above objectives, the exchange control measure on the import and export of currency notes has been put in place, aimed at regulating the amount of ringgit notes and foreign currency notes, including travellers cheques which resident and non-resident travellers can have in their possession when entering or departing from Malaysia. This measure is no different from those being applied by some other countries, including the developed economies.

Under the Exchange Control of Malaysia Notice (ECM 13) enforced on 1 September 1998, the following amounts of currency notes, defined to include currency notes and travellers cheques, are allowed into and out of the country:

Import of Currency Notes

• For non-resident travellers,

A non-resident traveller visiting Malaysia is permitted to carry with him/her any amount of foreign currency notes and travellers cheques, denominated in foreign currencies, but is required to declare to the authorities the amount of foreign currency notes and travellers cheques carried by him/her into Malaysia.

A non-resident traveller visiting Malaysia is permitted to carry with him/her ringgit currency notes up to RM1,000 only.

• For resident travellers

A resident traveller returning to Malaysia is permitted to carry with him/her any amount of foreign currency notes and travellers cheques denominated in foreign currencies.

A resident traveller returning to Malaysia is permitted to carry with him/her ringgit currency notes up to RM1,000 only.

Export of Currency Notes

• For non-resident travellers

A non-resident traveller leaving Malaysia is permitted to carry with him/her foreign currency notes and travellers cheques denominated in foreign currencies up to the amount brought into Malaysia.

A non-resident traveller leaving Malaysia is permitted to carry with him/her ringgit currency notes up to RM1,000 only.

• For resident travellers

A resident traveller leaving Malaysia is permitted to carry with him/her travellers cheques denominated in foreign currencies and foreign currency notes up to the equivalent of RM10,000.

A resident traveller leaving Malaysia is permitted to carry with him/her ringgit currency notes up to RM1,000 only.

Under the Exchange Control Act, 1953, a resident is defined as:

• A citizen of Malaysia, including a person who has obtained permanent resident status outside Malaysia but is residing in Malaysia.
• A non-citizen of Malaysia who has obtained permanent resident status in Malaysia and is residing in Malaysia.

A non-resident is defined as:

• Any person other than a resident
• A Malaysian citizen who has obtained permanent resident status outside Malaysia and is residing outside Malaysia.

Any person who needs to carry ringgit notes, foreign currency notes and travellers cheques in excess of the permitted amounts will have to seek the prior written approval from:

Head of Department
Balance of Payments Department
Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur

Tel: (60-3) 291-0772 / 290-7354 / 290-7353 / 290-7780
Fax: (60-3) 293-7732

In implementing ECM 13, however, every effort will be made to minimise inconvenience to the travelling public. For this purpose, the following procedures have been introduced:

For resident travellers:

As a general rule, residents are not required to make a declaration if they are carrying currency notes within the permitted limits. If they are carrying currency notes in excess of the permitted limits, they are required to complete a Travellers Declaration Form for submission to the Immigration Officer at all entry/exit points in Malaysia. To facilitate immigration clearance, all such travellers ought to have obtained prior Exchange Control approval from the Balance of Payments Department of Bank Negara Malaysia.

For non-resident travellers:

All non-resident travellers (including a child) are required to complete and submit a Travellers Declaration Form to the Immigration Officer at the point of entry, indicating the amount of foreign currency notes and travellers cheques in their possession, including ringgit notes in excess of RM1,000. The Travellers Declaration Form will be endorsed and attached to the non-resident traveller’s passport, to enable the non-resident traveller to declare on the same form the amount of foreign currency notes and travellers cheques and ringgit notes in his possession at the time of departure. If this exceeds the amount brought in, prior approval of the Controller of Foreign Exchange is required.

To enable travellers to familiarise themselves with the new procedures, the requirement to complete a Travellers Declaration Form will be implemented progressively, starting with departures from the Kuala Lumpur International Airport (KLIA) from 15 September 1998 and extending to Penang, Langkawi, Kuching, Kota Kinabalu, Johor Bahru, Padang Besar, Bukit Kayu Hitam, and Rantau Panjang on 21 September 1998. By 1 October 1998, the requirement to complete the Travellers Declaration Form by both incoming and outgoing travellers will be extended to all the 34 major entry/exit points in the country.

With the enforcement of ECM 13, importing and exporting ringgit notes, foreign currency notes and travellers cheques in excess of the permitted limits is an offence under the Exchange Control Act 1953. The unapproved excess amount of ringgit notes, foreign currency notes and travellers cheques is liable to seizure or forfeiture, and even prosecution.