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Issues
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Clarification
- Part 2
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| 12 |
External
accounts of non-resident corporations
- Conversion
into foreign currency
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- No
restrictions. However, transfers from another external account are not
allowed, except for transfers between external accounts for the purchase
of ringgit assets (see item 5 in the previous clarification statement
dated 4 September 1998).
Transitional
arrangement for period up to 30 September 1998
- Transfer
of funds from ringgit accounts held with banks abroad.
- Cash,
telegraphic transfer, etc.
- Purchase
of ringgit assets/ Placement of fixed deposits.
- For
defraying administrative and statutory expenses in Malaysia.
- For
payment of goods and services in Malaysia.
- For
the granting of loans and advances to staff in Malaysia pursuant to
the terms and conditions of service.
- If
ringgit assets are held for less than 12 months, proceeds from the sale
must be credited to the external account. For external account balances
held in the form of fixed deposits, funds in such external account cannot
be converted into foreign currency if the deposits were placed for less
than 12 months. The one-year requirement applies to holdings of Malaysian
assets in any form.
- If
ringgit assets are held for more than 12 months, the proceeds from the
disposal of the assets can be converted into foreign currency.
- Short-term
fixed deposits with maturity periods of less than one year, if rolled
over up to a year, may be converted into foreign currency.
For
securities purchased or deposits placed before 1 September 1998, the
one-year holding period starts from 1 September 1998. For securities
purchased or deposits placed on or after 1 September 1998, the one-year
period starts from the date of purchase/placement of deposit.
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| 13 |
External
accounts of Malaysians with permanent resident status and residing outside
Malaysia
- Sources
of funds
- Uses
of funds
- Conversion
into foreign currency
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(To
be read together with item 4 of the previous clarification statement
dated 4 September 1998).
- No
restrictions.
- No
restrictions.
- No
restrictions.
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| 14 |
External
accounts of non-residents residing outside Malaysia
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(To
be read together with item 4 of the previous clarification statement dated
4 September 1998).
- Purchase
of ringgit assets/ Placement of fixed deposits.
- For
defraying administrative and statutory expenses in Malaysia.
- For
payment of goods and services in Malaysia.
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| 15 |
External
accounts of offshore entities in Labuan International Offshore Financial
Centre
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- Sale
of foreign currencies.
- Proceeds
of credit facilities in ringgit as permitted in ECM 6.
- Transfers
from another external account belonging to companies in the same group
is only allowed to defray administrative and statutory expenses in Malaysia.
- To
defray administrative and statutory expenses in Malaysia and in the
case of Licensed Offshore Insurance Entities, also for the purpose of
reinsurance of domestic insurance business.
- Other
activities as permitted under item 2 of ECM 15.
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| 16 |
External
accounts of embassies, High Commissions, consulates, Central Banks, international
organizations and Missions of foreign countries in Malaysia
- Sources
of funds
- Uses
of funds
- Conversion
into foreign currency
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- No
restrictions.
- No
restrictions.
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| 17 |
Conversion
of ringgit into foreign currency by Malaysians migrating to another country |
No
restrictions upon presentation of the necessary documentary evidence to
the banks. |
| 18 |
Repatriation
of dividends, interest, rental, commissions and profits
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No
restrictions upon presentation of the necessary documentary evidence to
the banks.
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| 19 |
Procedure
to remit ringgit funds placed abroad after 30 September 1998
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Residents
and nonresidents to apply for approval to BNM at the following address:
Head
of Department
Balance of Payments Department
3rd Floor, Block A
P.O. Box 10922
Jalan Dato’ Onn
50480 Kuala Lumpur
Malaysia
Fax No.: (6) 03-2937732
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