Previously known as Foreign Exchange Administration (FEA), the Foreign Exchange Policy (FEP) is a set of rules administered by Bank Negara Malaysia (BNM) under the Financial Services Act 2013 and Islamic Financial Services 2013 to safeguard the value of the Malaysian currency. It regulates the inflow and outflow of funds from an External Account.

Find out more here.

This impacts Residents who are dealing in foreign currencies and Non–residents who are dealing in Malaysian Ringgit in Malaysia.

Definition of Resident:

• Malaysia citizen; or
• Malaysia citizen with PR status of another country but resides in Malaysia; or
• Non-Malaysian citizen with PR status in Malaysia and is residing in Malaysia; or
• Business enterprises/societies established and operating in Malaysia
• The Government or any State Government

Definition of Non-Resident:

• Non–Malaysian citizen; or
• Malaysian citizen with PR status abroad and resides abroad; or
• Embassies, Consulates, High Commissions, supranational or International organisations; or
• Business entitles established abroad
• An overseas branch, a subsidiary, regional office, sales office or representative office of a resident company

It's an account with any financial institutions in Malaysia opened by:

1. A Non-Resident either individually or jointly (with another Non-Resident or Resident); or
2. A Resident who operates the account in trust for or on behalf of a Non-Resident.

For Non-Residents with a Malaysian Ringgit account with RHB Bank, the transaction limit is MYR 10,000.00 (accumulated) per account daily.

There's isn't a transaction limit for Non-Resident Exempted Group (NEG) (Excluded Account). These are considered as the Non-Residents with a Malaysian Ringgit account with RHB Bank:

1. Consulate
2. High Commission
3. Embassy
4. An individual who participates in the Malaysia My Second Home Programme; or
5. An individual who is working or studying in Malaysia including the individual's spouse, child or parent who is residing in Malaysia

Domestic Borrowing allows a resident individual or entity (group of entity) with Domestic Ringgit Borrowing status to invest in foreign currency (FCY) asset with the following sources and limits:

For resident individual, sole proprietor or general partnership
Up to RM1 million equivalent in aggregate per calendar year using FCY funds sourced from Trade Multi Currency Account (MCA) (EXPA) and/or sourced from conversion of Malaysian Ringgit.

For resident entity (and other resident entities within the same group of entities with parent-subsidiary relationship)
Up to RM50 million equivalent in aggregate per calendar year using FCY funds sourced from Trade Multi Currency Account (MCA) (EXPA) and/or from conversion of Malaysian Ringgit.

For Non-Residents
All transactions involving Malaysian Ringgit are subjected to FEP External Account limit.

For Residents with Domestic Borrowing status
All transactions involving Foreign Currency investments are subjected to FEP Domestic Borrowing.

A Resident with/without Domestic Borrowing may invest in foreign currency assets (in and out) with the following conditions:

• Limit up to a total of MYR1 million per calendar year through conversion of Malaysian Ringgit across all channels (credit cards, online banking, mobile banking, etc)
• Limit up to total of MYR10 million equivalent in total through foreign currency borrowing obtained from a licensed on-shore bank or a Non-Resident.

For any transaction above MYR 10,000 for External Account, you're required to provide supporting documents and purpose of transactions at your nearest RHB branch for any transactions.

For Domestic Borrowing, please seek approval from Bank Negara Malaysia (BNM) and provide the approval letter to your nearest RHB branch to increase the limit.