Foreign Exchange Policy
Bank Negara Malaysia (BNM) has recently announced further liberalisation of Foreign Exchange Policy (FEP) which provides greater flexibilities to businesses as part of its continued efforts to strengthen Malaysia’s position in the global supply chain and to foster a conducive environment in attracting foreign direct investment (FDI) into Malaysia. Below are the liberalised measures introduced by BNM which became effective on 15th April 2021.
1. Removal of export conversion rule
2. Resident exporters can settle domestic trade in foreign currency with other residents involved in the global supply chain
3. Resident exporters can extend the period for repatriation of export proceeds beyond six months under exceptional circumstances
4. Resident exporters can net-off export proceeds against permitted foreign currency obligations
5. Resident corporates can undertake commodity derivatives hedging directly with non-resident counterparties
For more information on the liberalised measures, please refer to BNM’s website at https://www.bnm.gov.my/-/liberalisation-of-foreign-exchange-policy