As part of the efforts to continuously increase business efficiency and enhance competitiveness of the economy, Bank Negara Malaysia wishes to announce with effect from June 1, 2011 the following liberalisations on direct investment abroad, inter-company loans and trade financing facilities obtained by residents:

(a) To support private sector expansion of their operations and direct investment abroad, resident companies that meet the prudential requirements will now be permitted to undertake any amount of direct investment abroad. Therefore, direct investment abroad will be excluded from the prevailing RM50 million limit on investment in foreign currency assets.

(b) To further enhance the efficient management of financial resources within a corporate group and to provide greater flexibility on sources of competitive financing, resident companies may now borrow any amount in ringgit or foreign currency from their resident and non-resident non-bank related companies. 

(c) The RM5 million limit currently imposed on foreign currency trade financing obtained by residents from non-residents will no longer be applicable. In this regard, residents may obtain foreign currency borrowing, including foreign currency trade financing, up to the prevailing aggregate limit of RM100 million for companies on a corporate group basis and RM10 million for individuals.

For further information and enquiries on the above liberalisation, members of the public may contact Bank Negara Malaysia at the following:

Toll free line : 1 300 88 5465 (BNMTELELINK)
Facsimile : 603 2174 1515
Emai :  [email protected]

See also: FAQs related to Liberalisation of Foreign Exchange Administration Rules on Direct Investments Abroad, Inter-Company Loans and Foreign Currency Trade Financing