Bank Negara Malaysia Refines Foreign Exchange Policies.
Legal News & Analysis - Asia Pacific - Malaysia - Banking & Finance - FDI
21 May 2020
Bank Negara Malaysia has issued new Foreign Exchange Notices (“FX Notices”) which are aimed at improving business efficiency and providing flexibility to individuals and corporates to better manage their foreign exchange risk exposures. The new FX Notices revoke the previous FX Notices and apply to all dealings in Malaysian Ringgit and foreign currency, between and amongst Malaysian residents and non-residents. Transactions regulated by FX Notices include the sale, purchase, payment, transfer, remittance, borrowing, lending and guarantees involving Ringgit and foreign currency.
This article seeks to highlight some of the key changes brought about by the new FX Notices. With Malaysia’s economy relatively open and dependent on foreign trade and investments, the new FX Notices should give greater certainty for Malaysian businesses that are part of the global economy, and for foreign businesses having substantial dealings with Malaysia.
For more information, please contact:
Loo Tatt King, Partner ,(a member of ZICO Law)