Dear Valued Customers,
Pursuant to the Foreign Exchange Policy (FEP) Rules issued by Bank Negara Malaysia (BNM);
(A) FOR RESIDENTS
A resident individual or entity (group of entity) with Domestic Ringgit Borrowing* status are permitted to invest in foreign currency (FCY) asset with the following sources and limits;
For resident individual, sole proprietor or general partnership
Resident individuals residing in Malaysia are now allowed to make payment in foreign currency to resident individuals residing abroad for miscellaneous expenses (a Current Account transactions that is of reasonable amount and infrequent in nature) incurred outside Malaysia (such as holiday expenses abroad, medical expenses abroad, advance or reimbursement for purchase of goods and services abroad).
Resident individuals are now allowed to open joint foreign currency accounts with any non-resident individual.
a) any amount using Foreign Currency funds sourced from
i) outside Malaysia except proceeds of Export of Goods; or
ii) an approved Borrowing in Foreign Currency in accordance with Part A of Notice 2;
b) any amount where the investment is in real estate (The real estate is for the Resident Individual’s own accommodation or the Resident Individual’s Immediate Family Member’s accommodation only) outside Malaysia for the purpose of education, employment or migration; or
c) RM1 million equivalent (computed in aggregate based on the Resident Individual, sole proprietorship and General Partnership’s investment in Foreign Currency Asset) per calendar year using funds sourced from the aggregate of
i. conversion of Ringgit into Foreign Currency;
ii. Trade FCA; and
iii. swapping of a Ringgit-denominated financial asset in Malaysia for a financial asset in Labuan Entity or outside Malaysia.
For resident entity
a) any amount using Foreign Currency funds sourced from
i. outside Malaysia except proceeds of Export of Goods; or
ii. approved Borrowing in Foreign Currency in accordance with Part B of Notice 2;
b) any amount using Foreign Currency funds sourced from a Borrowing in Foreign Currency from a LOB for Direct Investment Abroad; or
c) RM50 million equivalent (computed in aggregate based on the Resident Entity and other Resident Entity with Parent- Subsidiary Relationship’s investment in Foreign Currency Asset) per calendar year using funds sourced from the aggregate of
i. conversion of Ringgit into Foreign Currency;
ii. Trade FCA;
iii. a Borrowing in Foreign Currency from a LOB for purposes other than Direct Investment Abroad; and
iv. swapping of a Ringgit-denominated financial asset in Malaysia for a financial asset in Labuan Entity or outside Malaysia.
(B) FOR NON-RESIDENTS
A Non-Resident is allowed to open and maintain an External Account (any payment, receipt or transfer from or into an External Account is allowed provided that the Non-Resident is able to produce documentary evidence that the purpose of transaction complies with relevant FEP Notices) with a Financial Institution in Malaysia. The verification process is exempted for payment up to RM10,000 per transaction, transfer between external accounts of the same account holder, transaction to/from an exempted external account holder and any amount of cash withdrawal over the counter.
For more information on FEP, kindly read and understand the FEP from BNM’s website at https://www.bnm.gov.my/fep to ensure all activities performed for your accounts maintained with RHB Group comply with FEP at all times.
PIDM Membership Representation
