1. The Controller has allowed through the Exchange Control (Temporary Visitors)(Exemption) Order, 1966 non-residents to hold foreign currency in Malaysia.
2. The Controller hereby gives permission, subject to the conditions in paragraphs 5 and 6, to -
2.1 Resident exporters to open one foreign currency account or one multi-currency account with any of the Designated Banks to retain export proceeds in foreign currency, subject to the following limits -
2.1.1 Up to an aggregate overnight balance equivalent to USD5 million for residents with average monthly export receipts exceeding RM10 million;
2.1.2 Up to an aggregate overnight balance equivalent to USD3 million for residents with average monthly export receipts between RM5 million and RM10 million; or
2.1.3 Up to an aggregate overnight balance equivalent to USD1 million for residents with average monthly export receipts of not more than RM5 million.
2.2 Residents other than individuals, with domestic credit facilities to open one or more foreign currency accounts to retain foreign currency receivables other than export proceeds, subject to the following limits-
2.2.1 Up to an aggregate overnight balance equivalent to USD0.5 million for the foreign currency accounts maintained with the Designated Banks; and
2.2.2 Up to an aggregate overnight balance equivalent to USD0.5 million for the foreign currency accounts maintained with the Liscensed Offshore Banks.
2.3 Resident individuals to open foreign currency accounts individually or jointly with any resident individual, solely to facilitate education and employment overseas, subject to the following limits -
2.3.1 Up to an aggregate overnight balance equivalent to USD100,000 for the foreign currency accounts maintained with the Designated Banks;
2.3.2 Up to an aggregate overnight balance equivalent to USD100,000 for the foreign currency accounts maintained with the Liscensed Offshore Banks; and
2.3.3 Up to an aggregate overnight balance equivalent to USD50,000 for the foreign currency accounts maintained with overseas banks.
2.4 Residents with no domestic credit facilities to open one or more foreign currency accounts with the Designated Banks and the overseas branches of Malaysian-owned banks for any purpose, other than for the retention of export proceeds, with no limit on the overnight balances -
Provided where the resident subsequently obtains domestic credit facilities, he cannot continue to maintain the account unless the permission of the Controller is obtained and such permission must be sought within one month from the date the domestic credit facility is approved by or obtained from the lender.
2.5 Liscensed merchant banks to open foreign currency accounts with any authorised dealer, Liscensed Offshore Bank or overseas bank, only for the purpose of facilitating acceptance of time deposits in foreign currency from non-residents.
3. The Prior permission of the Controller is required for a resident to -
3.1 Open a joint foreign currency account or for purposes other than as permitted in paragraph 2;
3.2 Exceed the limits permitted in paragraph 2 on the aggregate overnight balance of foreign currency accounts;
3.3 Make payments in foreign currency to any resident other than as permitted in ECM 4;
3.4 Convert Ringgit into foreign currency for credit into a foreign currency account, other than for the purpose of facilitating education or employment overseas, or where the resident has no domestic credit facilities; or
3.5 Make payments from the foreign currency accounts to non-residents for purposes which do not comply with the provisions in ECM4, ECM9 and ECM10.
4. A resident is not permitted to -
4.1 Credit export proceeds directly into any foreign currency account maintained with a Liscensed Offshore Bank or an overseas bank.
4.2 Credit net export proceeds, when the resident has obtained the permission of the Controller to offset payables to non-residents against receipt of export proceeds.
5. A resident is required to ensure -
5.1 The aggregate overnight balances of its foreign currency accounts do not exceed the permitted limits; and
5.2 Any transfer of funds from Malaysia to foreign currency accounts maintained with a Liscensed Offshore Bank or an overseas bank and vice-versa is made in the foreign currency in which the account is maintained, and not in Ringgit.
6. A resident other than individual is required to submit a Statement OA to the Controller within 14 days after the end of the month being reported for each of the foreign currency accounts maintained with an overseas bank.
7. An authorised dealer is required to comply with all the following -
7.1 Ensure the conditions on operations of foreign currency accounts are complied with.
7.2 Ensure completed Forms P or Forms R are submitted to the Controller for payments or receipts exceeding the equivalent of RM50,000 each vis-a-vis non-residents made through the residents foreign currency accounts, or when the residents transfer funds to foreign currency accounts maintained with Licensed Offshore Banks or overseas banks.
8. The non-individual resident shall refer to the manual on the ﾒCash Balance
of Payments Reporting System: Instructions to Residents with Overseas Accountsﾓ to
complete Statement OA.