Existing;
* Residents, in general, require permission to open foreign currency accounts, either in or outside Malaysia.
* All export proceeds must be repatriated to Malaysia and sold for Ringgit to authorised dealers and cannot be retained in foreign currency accounts.
* Residents with no domestic borrowing allowed to open foreign currency accounts only with the overseas branches of Malaysian-owned banks.
New;
* Exporters can open one multi-currency account with any Designated Bank to retain export proceeds up to -
- An aggregate overnight balance equiv. to USD5 million, for exporters with average monthly export receipts exceeding RM10 million.
- An aggregate overnight balance equivalent to USD3 million for exporters with average monthly export receipts between RM5 million and RM10 million.
- An aggregate overnight balance equiv. to USD1 million, for exporters with average monthly export receipts not exceeding RM5 million.
* Residents other than individual with domestic borrowing can open foreign currency accounts to credit foreign currency receivables other than export proceeds-
- With Designated Banks up to an aggregate overnight balance equivalent to USD0.5 million.
- With Labuan Offshore Banks up to an aggregate overnight balance equivalent to USD0.5 million.
* Residents can open foreign currency accounts with Designated Banks or any bank overseas for education and employment purposes, subject to limits-
- USD100,000 for accounts with Designated Banks or with Labuan Offshore Banks; and
- USD50,000 for accounts with overseas banks.
* Resident with no domestic borrowing can open foreign currency accounts with Designated Banks as well as overseas branches of Malaysian-owned banks.
Existing;
* Threshold to complete Form KPW X is RM20,000 f.o.b. per shipment(RM100,000 f.o.b. per shipment for export to Indonesia).
* Form KPW XA required for change in value declared in For KPW X by more than RM5,000.
* Restrictive payment procedures for trade with Indonesia.
* Quarterly report on exports needs to obtain certification from external auditors if the aggregate receipt is RM1 million equivalent during the reporting quarter.
New;
* Threshold raised to RM100,000 f.o.b. per shipment to any country.
* Form KPW XA required only when the change in value is more than 10% of the original value in Form KPW X.
* Revokes all special payment restrictions.
* Quarterly report needs to be certified by external auditors or authorised bank officers only if the aggregate receipt of exports exceed RM2 million equivalent during the reporting quarter.
Existing;
* Separate foreign currency loan limits -
- equiv. to RM1 million from onshore banks;
- equiv. to RM1 million from non-residents.
* Trade financing and financial guarantees are part of the limit imposed on credit facilities.
* Credit facilities of any amount in Ringgit from non-residents require approval.
New;
* Combined limit equiv. to RM5 million for all credit facilities in foreign currency.
* Freely allowed to obtain -
- Financial guarantees in foreign currency of any amount from onshore banks.
- Short-term trade financing(less than 12 months) in foreign currency of any amount
from onshore banks.
- Financial guarantees from Labuan Offshore Banks, non-resident individuals and non-resident
shareholders, related or associate companies which are not financial institutions.
* The above credit facilities are excluded from the computation of the RM5 million limit.
* Allowed to obtain credit facilities in Ringgit up to aggregate of RM50,000 from any non-resident individual.
Existing;
* Definition of NRCC is where 50% or more of paid up capital is held by non-residents/NRCCs.
* Definition of credit facilities includes redeemable preferences shares issued to commercial banks.
* All types of credit facilities included in the computation of RM10 million limit and total domestic borrowing exceeding RM10 million for gearing purposes.
* Eligible capital funds consists of -
- Paid-up capital;
-Share premium;
-Accumulated profits(less losses);
-long-term foreign loans(minimum tenure of 5 years);
-Revaluation reserves for public listed companies.
* Gearing ratio of 2:1 imposed on total domestic borrowing exceeding RM10 million.
* Domestic borrowing, irrespective of amount, subject to 60:40 requirement.
New;
* Amended to more than 50% of immediate majority shareholding.
* Extended to redeemable preference shares issued to financial institutions which are not ordinary shareholders.
* Excludes -
- Short-term trade financing.
- Forward exchange contracts.
- All types of guarantees.
* Eligible capital funds consists of -
- Paid-up capital;
- Share premium;
- Accumulated profits(less losses);
-Concessional credit facilities from non-resident shareholders(near equity);
- Revaluation reserves for public listed companies.
* Gearing ratio raised to 3:1
* Domestic Borrowing of 60:40 requirement remains unchanged.
Existing;
* External Account holders allowed to borrow up to RM100,000 from banking institutions, inclusive of one residential property loan.
* Malaysian with PR abroad can obtain one residential property loan up to RM100,000.
New;
* Raised to RM200,000 for all purposes, excluding purchase of residential property in Malaysia. In addition, one residential property loan of up to 60% of purchase price.
* No limit for one residential property loan.
Existing;
* OHQs require specific approval to open foreign currency accounts.
* All export proceeds in foreign currency must be repatriated to Malaysia and sold for Ringgit.
* Required to comply with the 60:40 and 2:1 gearing requirements for domestic borrowing. Aggregate domestic borrowing exceeding RM10 million requires approval.
* Requires approval to borrow more than RM1 million equivalent from non-residents or onshore banks.
* Requires approval to lend to non-residents or to invest abroad if it has domestic borrowing in Ringgit or foreign currency.
New;
* Free to open foreign currency accounts with any Designated Banks, Labuan Offshore Banks and overseas bank.
* Free to open one multi-currency account with any Designated Bank to retain export proceeds up to an aggregate overnight balance equiv. to USD5 million.
* Free to borrow in Ringgit from residents up to RM10 million-No imposition of 60:40 or 3:1 gearing requirements.
* Free to obtain any amount of credit facilities in foreign currency from any source.
* Free to lend in foreign currency to related companies abroad or to invest abroad, as long as its domestic Ringgit borrowing does not exceed RM10 million.
Existing;
* Residents require prior approval to make payment under guarantees to non-residents.
New;
* Freely allowed to make payment under guarantees as long as the payment is made in foreign currency.
Existing;
* Residents can hedge the exchange risk only by entering into outright forward exchange contracts.
New;
* Freely allowed to enter into any other hedging arrangements such as currency options and other financial derivatives to hedge trade-related transactions.
Limits on Foreign Currency Accounts
for Residents with Domestic Borrowing
Individuals :
* USD100,000 for education & employment to Designated banks
* USD100,000 for education & employment to Labuan banks
* USD50,000 for education & employment to Overseas banks
Requires specific approval for other purposes.
Business Enterprises:
A) Crediting export proceeds
* Big exporter-USD5 million
* Medium exporter-USD3 million
* Small exporter-USD1 million
* Not permitted to Labuan banks and Overseas banks
B) Other than export proceeds
* USD0.5 million
* USD0.5 million to Labuan banks
* Requires specific approval for overseas banks
A) Big exporter means an exporter with average monthly export receipts exceeding RM10 million. Medium exporter means an exporter with average monthly export receipts between RM5 million and RM10 million. Small exporter means an exporter with average monthly export receipts of not more than RM5 million.
B) To credit foreign currency receivables excluding export proceeds.