Quick Guide on Foreign Exchange Policy

A Non-Resident is allowed to make or receive payment in Ringgit, in Malaysia, to or from another Resident for:

1

any purpose between Immediate Family Members¹

2

income earned or expense incurred in Malaysia

3

settlement of a trade in goods or services, excluding payment between Non-Residents (NR)s for settlement of a trade in goods or services outside Malaysia

4

settlement of a Ringgit (RM) asset² including any income and profit due from the RM asset

5

settlement of a commodity murabahah transaction undertaken through a commodity trading service provider, excluding payment between NRs for settlement of a commodity murabahah transaction undertaken through a NR commodity trading service provider

6

a court judgement where the transaction under litigation is undertaken in compliance with the Foreign Exchange Policy Notices

7

a reinsurance for domestic insurance business or a retakaful for domestic Takaful business between a Resident and a person licensed to carry out Labuan insurance business under the Labuan Financial Services and Securities Act 2010 or Labuan Islamic Financial Services and Securities Act 2010.

¹

a legal spouse, parent, legitimate child (including legally adopted) or legitimate sibling of an Individual

²

Ringgit Asset refers to:

1. Ringgit-denominated securities or Islamic securities issued in Malaysia by a Resident;
2. Ringgit-denominated securities or Islamic securities issued by a Non-Resident as approved in writing by Bank Negara Malaysia;
3. Ringgit-denominated Financial Instrument or Islamic Financial Instrument as approved in writing by Bank Negara Malaysia;
4. Ringgit deposit with a Financial Institution in Malaysia including deposit-like instrument with only Ringgit delivery at the inception and maturity; or
5. any property in Malaysia