Existing

New

ECM 2: Dealings in Gold and Foreign Currrency

No restriction on foreign exchange contracts between authorised dealers and non-residents.
 

No change, except for External Account holders.
ECM 3: External Accounts

Transfer between External Account holders freely allowed.
   

No restrictions on credits and debits to an External Account.
 

Transfers between External Accounts would require prior approval for any amount.
   

Transfers to resident accounts in Malaysia bank are permitted until September 30, 1998. Thereafter, such transfers require approval.
   

Sources of funding the External Account are limited to:

  • Proceeds from sale of ringgit instruments securities registered in Malaysia or other assets in Malaysia.
  • Salaries, wages, commissions, interest or dividend.
  • Sale of foreign currency.
   

Use of funds in the account is limited to:

  • Purchase of ringgit assets in Malaysia.
ECM 4: General Payments

Generally residents were freely allowed to make payments to non-residents for any purpose, provided, for an amount of RM100,000 and above:

  • a Form P is completed; and

  • the resident does not have any domestic borrowing (if the payment is for investments abroad in any form); or

  • the payment is made in foreign currency if in relation or consequential to a guarantee (for non-trade purposes).
 

Generally residents are freely allowed to make payments to non-residents for any purpose up to RM10,000 in ringgit or its equivalent in foreign currency (reduction in amount), except for all payment for imports of goods and services.
   

Residents are freely allowed to make payments to non-residents in foreign currency only for amount exceeding RM10,000 equivalent. However, investments abroad in any form and payments under a guarantee for non-trade purposes require approval.
   
Form P is completed for amounts exceeding RM10,000 equivalent.
ECM 5: Exports of Goods

Prescribed manner of payment for exports is in foreign currency or ringgit from an External Account.
 

Prescribed manner of payment for exports is in foreign currency only, other than currencies of Israel, Serbia and Montenegro.



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