1. For the purpose of this ECM Notice, credit facilitiesﾓ when extended to non-residents includes personal housing and vehicle credit facilities.
2. An authorised dealer may lend in foreign currency to non-residents for any purpose, provided credit facilities to finance the acquisition or development of immovable property in Malaysia comply with the provisions in paragraphs 4.3.1 and 4.3.2.
3. The Controller hereby gives permission to a resident to issue guarantees on behalf of a non-resident for any purpose.
4. The Controller hereby also gives permission, subject to the conditions in paragraphs 6 and 7, to -
4.1 A banking institution to extend credit facilities in Ringgit to a non-resident
stockbroking company or a non-resident correspondent bank which maintains an External
Account, provided-
4.1.1 The total credit facilities of the non-resident stockbroking company or non-resident
correspondent bank from all banking institutions does not exceed the aggregate of
RM5 million; and
4.1.2 The credit facilities are used by -
4.1.2.1 The non-resident stockbroking company to finance funding gaps if there is a delay in receipt of funds from its non-resident clients for the payment of securities purchased on the Kuala Lumpur Stock Exchange (hereinafter referred to as KLSE.
4.1.2.2 The non-resident correspondent bank to finance unforeseen or inadvertent funding gaps arising from the mismatching of receipts and payments through the External Account.
4.2 A banking institution to extend credit facilities in Ringgit to a non-resident(other than a stockbroking company and correspondent bank) which maintains an External Account, provided -
4.2.1 The total credit facilities of the non-resident from all banking institutions does not exceed the aggregate of RM200,000; and
4.2.2 The credit facilities are to finance purposes other than the acquisition or development of immovable property in Malaysia.
4.3 A resident, including a banking institution, to extend credit facilities in Ringgit -
4.3.1 Of any amount to a Malaysian citizen who has obtained permanent resident status in another territory and is not residing in Malaysia, to finance the purchase or construction of one residential property in Malaysia, provided the borrower does not individually or jointly own any other residential property in Malaysia.
4.3.2 To a non-resident, other than a non-resident mentioned in paragraph 4.3.1, to finance the purchase or construction of one residential property in Malaysia(excluding purchase of land only), provided -
4.3.2.1 The non-resident has a valid work permit with at least one year duration before expiry as at the date of application;
4.3.2.2 The credit facility does not exceed 60% of the purchase price or construction cost of the residential property;
4.3.2.3 The residential property is for the non-residentﾕs own accommodation; and
4.3.2.4 The non-resident does not individually or jointly own any other residential property in Malaysia.
4.4 A resident stockbroking company to extend margin financing to a non-resident for the purchase of only securities listed on the KLSE, provided the resident stockbroking company complies with all the rules imposed by the KLSE on the extension of margin financing.
4.5 A non-bank resident to lend in foreign currency to a non-resident, provided the non-bank resident has no domestic credit facilities.
5. The prior permission of the Controller is required for a resident to extend any credit facility to a non-resident, other than permitted in paragraph 4.
6. A resident is required to ensure the provisions in paragraph 4 are met when extending credit facilities to a non-resident.
7. The main office/head office of a participating financial institution is required to report credit facilities extended to non-residents in the Borrower Loan Information System.