1. For the purpose of this ECM Notice, ﾒcredit facilitiesﾓ includes financial guarantees obtained from financial institutions or other residents.
2. The Controller hereby gives permission to a resident to issue guarantees in favour of non-residents.
3. The Controller hereby also gives permission to a resident to pay any sum of money to a non-resident, provided where an individual payment exceeds RM50,000 or its equivalent in foreign currency -
3.1 A Form P is completed;
3.2 The resident has no domestic credit facilities and the payment is made in foreign currency for any of the purposes listed in paragraph 4.1; and
3.3 The payment is made in foreign currency when it is related or consequential to any guarantee.
4. The prior permission of the Controller is required for -
4.1 A resident who has domestic credit facilities to pay an amount exceeding RM50,000 or its equivalent in foreign currency to a non-resident for any of the following purposes -
4.1.1 Payment for the purchase of securities issued outside Malaysia or immovable properties abroad;
4.1.2 Lending (other than credit facilities to non-residents as permitted in ECM6) or depositing of money;
4.1.3 Payment for commodity futures not transacted at a commodity exchange in Malaysia; or
4.1.4 Payment for investments abroad in any form.
4.2 A resident to make payment to a non-resident for any spot or forward contract or interest rate futures not transacted at a futures exchange in Malaysia.
4.3 A resident to make payment in Ringgit to a non-resident in relation or consequential to any guarantee.
4.4 A resident to make payment in foreign currency to another resident, other than payments for education or employment overseas or repayment of foreign currency credit facilities obtained from licensed banks or licensed merchant banks.
5. An authorised dealer is required to ensure that for any payment exceeding RM50,000 or its equivalent in foreign currency to a non-resident -
5.1 A Form P is completed and submitted to the Controller.
5.2 The provisions of ECM 10 are complied with for the repayment of the principal and the payment of interest on credit facilities obtained from non-residents.
5.3 The resident making payment for purposes listed in paragraph 4.1 has no domestic credit facilities and the payment is made in foreign currency.
5.4 The provisions of ECM9 are complied with for investments abroad in any form.
5.5 The word "GUARANTEE" is indicated clearly on the top right hand corner of Form P for payment made under any guarantee.
6. An authorised dealer shall refer to the manual. ﾒCash Balance of Payments Reporting System: Instructions to Authorised Bansﾓ dated January 1,1991 on the proper completion of Form P.