1. For the purposes of this ECM Notice -
1.1 credit facilitiesﾓ includes financial guarantees obtained from financial
institutions or other residents.
1.2 investments abroad includes -
1.2.1 Swap of securities registered in Malaysia with non-residents for securities registered outside Malaysia; and
1.2.2 Payment for -
1.2.2.1 The setting up of a representative office, sales office, branch, associate company or subsidiary, partnership or any business arrangement;
1.2.2.2 Administrative expenses or working capital of the representative office, sales office, branch, associate company or subsidiary, partnership or any business arrangement; or
1.2.2.3 Joint-venture projects where no entity is created.
2. The Controller hereby gives permission to a resident to pay any sum of money to a non-resident for investments abroad, provided where an individual payment exceeds the equivalent of RM50,000 -
2.1 The resident has no domestic credit facilities; and
2.2 The payment is made in foreign currency.
3. The prior permission of the Controller is required for -
3.1 A resident which has no domestic credit facilities to make payment in Ringgit for investments abroad; or
3.2 A resident which has domestic credit facilities to make any payment exceeding RM50,000 or its equivalent in foreign currency for investments abroad.
4. Where the permission of the Controller is required, inter-alia, the following criteria will be considered -
4.1 The investment is undertaken to gain market access and the investment will use Malaysian inputs (raw materials, parts, components);
4.2 The investment will assist in exporting Malaysian products or services;
4.3 There is transfer of technology and know-how to Malaysia;
4.4 The investment will supply inputs required by resident companies.
5. Where prior permission of the Controller is required, the resident shall apply to the Controller, submitting information as per the Appendix.
1. The amount proposed to be invested.
2. The amount proposed to be invested as a percentage of the equity of the overseas entity.
3. Reasons for investing overseas.
4. Benefits to Malaysia arising from the proposal investment.
5. The sources of finance for the investment - if from own funds, provide information on the latest amount of deposits with banking institutions.
6. Details of shareholdersﾕ funds of the resident company and the overseas entity, providing a copy of the latest audited Statement of Accounts.
7. Name of shareholders ( and their residential status) of the resident company and the overseas entity. Identify shareholders of 5 % or more of total equity and the respective amount of shares held, for both entities.
8. Nature of business of the resident company and that of the overseas entity.
9. Existing overseas investments and the amount invested by the resident company.
10. Existing domestic credit facilities obtained by the resident company -
10.1 Limit;
10.2 Outstanding amount;
10.3 Type of facilities;
10.4 Name of lender(s);
10.5 Security; and
10.6 Purposes of credit facilities.