Payment in Ringgit
A non-resident is allowed to make or receive payment in ringgit in Malaysia, to or from a resident or a non-resident, for the purposes as follows:
|
Purpose of Use and Source of Funds |
Between Non-Resident and Resident |
Between |
|---|---|---|
|
Settlement of a ringgit asset including any income and profit due from the ringgit asset |
✔ |
✔ |
|
Settlement of trade in goods |
✔ |
✔ |
|
Settlement of services, in any manner |
✔ |
✔ |
|
Income earned or expense incurred, in Malaysia |
✔ |
✔ |
|
Settlement of a commodity murabahah transaction undertaken through a commodity trading service provider |
✔ |
|
|
Settlement of reinsurance for domestic insurance business or retakaful for domestic takaful business between a resident and a person licensed to undertake Labuan insurance or takaful business |
✔ |
|
|
Settlement of court judgement where the transaction under litigation is undertaken in compliance with the FE Notices
|
✔ |
|
|
For any purpose between immediate family members |
✔ |
✔ |
Payments on behalf of non-resident clients using funds in the external account is allowed as follows:
|
By |
For the purpose of |
|---|---|
|
Non-resident financial institution |
Settlement of international trade of goods or services with a resident. |
|
Non-resident intermediary or non-resident custodian or trust bank |
Settlement of ringgit assets. |
Payments or receipts 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 FE Notices in accordance with onshore banks’ internal due diligence process.
Further Information
