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					         Chronology of Gradual Liberalisation of Exchange Control Rules
                                (By transaction)

                                                    2012
                     Buying and selling of foreign currency against another
ECM2 -Dealings in
foreign currency     foreign currency
                     •    Allow a licensed onshore bank to buy and sell foreign
                          currency against another foreign currency with a resident for
                          any purpose.

                      •    The funding for the buying and selling of foreign currency
                           against another foreign currency by the resident from-
                                the conversion of ringgit shall be made only on spot
                                basis with a licensed onshore bank and is subject to the
                                prevailing rules on investment in foreign currency
                                assets pursuant to ECM9; or

                                credit facility in foreign currency shall be subject to the
                                prevailing rules on foreign currency credit facilities
                                obtained by residents pursuant to ECM10.

                      Swapping of ringgit or foreign currency debt obligation into
                      another foreign currency debt obligation for asset liability
                      management
                      •   Allow a resident to enter into a transaction with -
                          (a) a licensed onshore bank to convert an existing ringgit
                               debt obligation into a foreign currency debt obligation
                               subject to the condition that there is no actual delivery of
                               the foreign currency at the inception of the transaction;
                               or
                          (b) a licensed onshore bank, an International Islamic Bank
                               or a non-resident to convert an existing foreign currency
                               debt obligation into another foreign currency debt
                               obligation.

                      •    The transaction is deemed as a credit facility and shall be
                           subject to the prevailing rules on foreign currency credit
                           facilities extended or obtained by residents pursuant to ECM6
                           and ECM10 respectively.




                                         1
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

                                            2010
             Foreign currency transactions by licensed onshore banks
             with non-residents
             •    Allow licensed onshore banks to buy or sell ringgit against
                  foreign currency on spot or forward basis with a non-resident
                  for settlement of goods and services with a resident

            Anticipatory hedging by residents
            •    Abolish the limit on anticipatory hedging of current account
                 transactions by residents with licensed onshore banks

                                               2008
             Dealing and payment in foreign currency
             •    Allow International Islamic Banks to conduct the following
                  transactions with any person in or outside Malaysia:
                      Buy or sell foreign currency against another foreign
                      currency; or
                      Borrow or lend in foreign currency.

             •    Allow all International Islamic Banks, International Takaful
                  Operators, International Currency Business Units and Takaful
                  and Retakaful operators to make payment in foreign currency to
                  resident intermediaries for the financial services rendered by the
                  intermediaries.

                                             2007
            Forward Foreign Exchange Contracts by residents
            •   Abolition of registration requirement for forward foreign
                exchange contracts exceeding RM50 million equivalent per
                contract for permitted capital account transactions and
                anticipatory current account transactions.

             •    Allow a resident to enter into forward foreign exchange contracts
                  with a licensed onshore bank to hedge foreign currency loan
                  repayment up to the full loan amount (previously only up to the
                  amount payable within 24 months).

            Foreign currency business by investment bank
            ▪    Allow an investment bank in Malaysia to undertake foreign
                 currency business, subject to a comprehensive supervisory
                 review on the capacity and capability of the investment banks.

             Net Open Position (NOP)
             ▪    Abolish the foreign currency NOP limit imposed on a licensed
                  onshore bank.



                                2
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

             Foreign currency account
             ▪   Abolish the aggregate overnight balance limit imposed on a
                 licensed onshore bank for all the foreign currency accounts
                 maintained by residents.

            Settlement of ringgit assets by non-residents
            ▪    Allow a licensed onshore bank to appoint overseas branches of
                 its banking group as a vehicle to facilitate the settlement of any
                 ringgit assets of its non-resident investors.

                                               2006
            Net Open Position (NOP)
            Licensed banks and approved merchant banks shall:

             •    Determine own overnight Net Open Position (NOP) limit in
                  foreign currencies, long or short, spot or forward, capped at
                  20% of the licensed banks’ and approved merchant banks’
                  capital base as at end of the previous month; and

             •    Compute foreign currency option (FX option) position in the
                  NOP based on delta value.
                                            2005

            Forward Foreign Exchange Contracts by residents
            ▪   Allow residents to enter into forward foreign exchange
                contracts to buy or sell foreign currency against ringgit or
                another foreign currency to hedge:

                  (a)   Anticipatory payments for imports or receipts from
                        exports of goods and services up to the amount paid or
                        received in the preceding 12 months. There is no
                        restriction on the tenure of the forward contracts;

                  (b)   Payment for permitted investment abroad including
                        lending to non-residents in foreign currency;

                  (c)   Foreign currency exposure of permitted investment
                        abroad; and/or

                  (d)   Amount of prepayment or repayment of permitted
                        foreign currency credit facilities that is payable within
                        the next 24 months.

            Forward Foreign Exchange Contracts by Non-residents
            ▪   Non-residents may enter into forward foreign exchange
                contracts to buy or sell foreign currency against ringgit to
                hedge committed:

                                 3
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)



                 (a)   payments or receipts for current account transactions,
                       provided the payments to or receipts from residents
                       are permitted to be settled in ringgit; and

                 (b)   inflows and outflows for investments in, or divestments
                       of, ringgit assets other than:

                        (i) Funds in External Account, including fixed
                              deposits;
                        (ii) Negotiable instruments of deposits in ringgit; and
                        (iii) Over-the-counter derivatives or structured
                              products which tantamount to lending or
                              borrowing of ringgit between residents and non-
                              residents.

                                             2004
            Forward Foreign Exchange Contracts by residents
            ▪   Allow residents to enter into forward foreign exchange contracts
                to sell foreign currency receivables (other than export receipts)
                to an authorised dealers against ringgit or another foreign
                currency for any tenure, provided the transactions are supported
                by firm underlying commitment.

             ▪   For forward foreign exchange contracts to purchase export
                 proceeds receivables against ringgit or another foreign currency,
                 the maturity date of the contract continues to be subject to not
                 exceeding 6 months from the intended date of export.

             ▪  Allow residents to enter into interest rate swap arrangements
                with authorised dealers, approved merchant banks and licensed
                offshore banks in Labuan (excluding licensed investment banks)
                to swap interest payments arising from permitted foreign
                currency loans.
                                             2003
            Forward Foreign Exchange Contract
            ▪   Allow residents to sell forward of up to 12 months foreign
                currency receivables for ringgit with an authorised dealer for any
                purpose provided that the transaction is supported by firm
                underlying commitment to receive such currency.

                                             2000
            Investment Abroad by Authorised Dealers and Approved
            Merchant Banks
            ▪    Allow authorised dealers and approved merchant banks to
                 invest abroad subject to the following conditions the
                 institutions:
                                4
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

                 o comply with the requirement of the Banking and Financial
                   Institution Act 1989;
                 o comply with their net foreign currency overnight open
                   position limit; and
                 o remittance is made in foreign currency

                                            1999
            Forward Foreign Exchange Contract
            ▪   Authorised dealers are allowed to enter into short-term currency
                swap arrangement with non-resident stockbrokers and outright
                ringgit forward sale contract with non-residents to cover payment
                for their share purchases on the KLSE.

            ▪    The permission is subject to the condition that such contracts
                 are based on firm commitment and not on anticipated
                 purchases, and for maturity period of up to five working days
                 with no rollover option.




                               5
         Chronology of Gradual Liberalisation of Exchange Control Rules
                                (By transaction)

                                                      2011
                     Payments in ringgit involving resident and non-resident
ECM3 – External
Account              individuals
                     •    Allow the uses and sources of funds of External Accounts
                          arising from the payment in ringgit for any purpose between:
                          (a) non-resident individuals who are immediate family
                                members; and
                          (b) non-resident and resident individuals who are immediate
                                family members.

                                                      2010
                     Settlement of Goods and Services by Residents and Non-
                     residents
                     •    Allow residents to make payments to, or receive payments
                          from, non-residents in ringgit, in addition to payments in
                          foreign currency, as settlement for goods and services. This
                          is provided that:
                              Payment in ringgit by resident to the non-resident must
                              be made into the External Account of the non-resident; or
                              Receipt of ringgit by the resident company from the non-
                              resident can be effected from the External Account of the
                              non-resident or an External Account of an appointed
                              overseas branch of the same banking group of an
                              onshore bank.

                                                      2001
                     Transfer of funds by way of Internet Banking, ATM Cards and
                     Ringgit Cheques
                     •   Allow banking institutions in Malaysia to effect transfers involving
                         External Accounts and another External Account and/or
                         Resident Account of different account holders by way of –

                          (a) Automated Teller Machine transfer up to RM5,000 per
                              person/ company, per day, per bank for any purpose;
                              and/or

                          (b) Internet-bank transfers up to RM5,000 per person/
                              company, per day, per bank for any purpose

                          (c)   Cheques up to RM5,000 per cheque for any purpose.




                                         6
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

            Review of Operational Guidelines involving External Account
            and Special External Account of Non-residents
            ▪   Non-resident investors are no longer required to maintain
                Special External Accounts and Designated External Accounts as
                of July 2001.

             ▪   Non-residents holding different ringgit accounts are allowed to
                 merge these accounts into one External Account.




                               7
       Chronology of Gradual Liberalisation of Exchange Control Rules
                              (By transaction)

                                                   2012
                   Ringgit-denominated interest rate derivative
ECM4-General       •   Allow a licensed onshore bank to undertake settlement in
Payments
                       ringgit or foreign currency equivalent with a non-bank non-
                       resident, for a ringgit-denominated interest rate derivative
                       offered by the licensed onshore bank to the non-bank non-
                       resident.

                                                2011
                   Payments in ringgit and foreign currency involving resident
                   and non-resident individuals
                   •   Free the payment in ringgit for any purpose between:
                       (a) non-resident individuals who are immediate family
                           members; and
                       (b) non-resident and resident individuals who are immediate
                           family members.

                    •   Free the payment in foreign currency for any purpose
                        between:
                        (a) resident individuals who are immediate family members;
                            and
                        (b) resident and non-resident individuals who are immediate
                            family members.

                                                     2010
                   Invoicing in ringgit between residents and non-residents
                   •    Allow residents to invoice in ringgit its exports, or accept and
                        invoice in ringgit for its imports, of goods and services with
                        non-residents.

                   General Payments
                   •   Allowed resident futures brokers to make payments to non-
                       residents for foreign currency-denominated derivatives (other
                       than currency contracts) transacted on overseas specified
                       exchanges

                    •   Allowed residents to transact foreign currency-denominated
                        derivatives (other than currency contracts) on overseas specified
                        exchanges through resident futures brokers as follows:
                        (a) any amount for transactions that are supported by firm
                             underlying commitment; and
                        (b) subject to limits on investment in foreign currency assets
                             for transactions that are not supported by firm underlying
                             commitment.
                                      8
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

            General Payments
            •   Allowed resident and non-resident participants# undertaking
                commodity murabahah through resident commodity trading
                service providers to make –
               (a) payment in foreign currency between resident participants;
               (b) payment in ringgit onshore between-
                   (i) resident and non-resident participants; and
                   (ii) non-resident participants.

            #
             The participants of commodity murabahah comprise financial
            institutions, companies or individuals, commodity brokers, commodity
            suppliers, commodity buyers and commodity trading service provider.
                                              2007
            Payment in foreign currency between residents
            •      Allow resident companies with export earnings to pay another
                   resident company in foreign currency for the settlement of goods
                   and services.

             •    Allow residents to pay another resident in foreign currency for
                  the settlement of foreign currency investment products offered
                  onshore.

            Threshold for Reporting Payment and Receipt
            •   Increase the individual reporting threshold for transactions
                between residents and non-residents to RM200,001 or its
                equivalent in foreign currency from RM50,001 per transaction.

            Financial Guarantee
               Allow licensed onshore bank to:

                 (a) Issue a financial guarantee of any amount on behalf or in
                     favour of a non-resident; or

                 (b) Obtain a financial guarantee of any amount from a non-
                     resident.

                 The above financial guarantees issued or obtained by the
                 licensed onshore bank are not required to be registered with the
                 Controller.

             •   Allow non-bank resident to:
                 (a) Issue a financial guarantee of any amount on behalf or in
                     favour of a non-resident; or


                 (b) Obtain a financial guarantee of any amount from a non-
                     resident.
                                 9
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

                 This is provided that the financial guarantee is registered with the
                 Controller at least seven (7) working days prior to the issuance or
                 obtaining of the financial guarantee, if –


                        the aggregate amount of financial guarantees issued
                        or obtained by the non-bank resident exceeds RM50
                        million, respectively; and


                        the financial guarantee is to secure a credit facility
                        that has not been approved by the Controller and that
                        credit facility is extended by –


                            (i)          a resident (bank or non-bank) to
                                         another resident (bank or non-
                                         bank);


                            (ii)         a resident (bank or non-bank) to a
                                         non-resident;

                            (iii)        a non-resident to a resident (bank
                                         or non-bank); or

                            (iv)         a non-resident to another non-
                                         resident.

                                                  2004
            Reporting Payments and Receipts by Residents
            ▪   The requirement to complete a Form P for residents who make
                payments in excess of RM50,000 or its equivalent in foreign
                currency is discontinued.

             ▪    Banking institutions are, however, required to provide specific
                  information to the Bank when effecting any payment exceeding
                  RM50,000 or its equivalent in foreign currency on behalf or a
                  resident or for its own account, to a non-resident.

                                                  2003
            Threshold for Reporting Payments and Receipts
            ▪   Increase the threshold for transactions between residents and
                non-residents to RM50,001 in ringgit or its equivalent in foreign
                currency from RM10,001, irrespective of purpose of payment.

             ▪    Accordingly, the threshold for reporting payments and receipts
                  under Cash Balance of Payments System is increased to
                  RM50,001 respectively.

                                    10
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

                                             2002
            Settlement of Ringgit Assets by Residents and Non-residents
            •    Payments between residents and non-residents as well as
                 between non-residents for ringgit assets is liberalised to allow
                 payments to be made either in ringgit or foreign currency.
                 (Previously, payments are made only in ringgit.)
                                            1998
            Obtaining of financial and non-financial guarantee
            ▪    Residents were allowed to obtain financial and non-financial
                 guarantees (except trade guarantees) in ringgit from Licensed
                 Offshore Banks in Labuan.




                               11
         Chronology of Gradual Liberalisation of Exchange Control Rules
                                (By transaction)

                                                    2010

ECM5-Export of       Settlement of Goods and Services by Residents and Non-
Goods                residents
                     •    Allow residents to make payments to, or receive payments
                          from, non-residents in ringgit, in addition to payments in
                          foreign currency, as settlement for goods and services. This
                          is provided that:
                              Payment in ringgit by resident to the non-resident must
                              be made into the External Account of the non-resident; or
                              Receipt of ringgit by the resident company from the non-
                              resident can be effected from the External Account of the
                              non-resident or an External Account of an appointed
                              overseas branch of the same banking group of an
                              onshore bank.

                                                    2004
                     Reporting on Export by Residents
                     ▪   The requirement to submit annual reports for exports in excess
                         of RM100,000 f.o.b. is abolished.

                      ▪   Only resident exporters with gross annual exports (based on the
                          previous year’s gross exports) exceeding RM50 million are
                          required to submit quarterly report on the export of goods.

                                                    2003
                     Reporting on Export by Residents
                     ▪   Abolish the requirement to complete Form KPW X for exports in
                         excess of RM100,000 f.o.b.

                      ▪   Resident exporters only need to continue to submit quarterly and
                          annual reports on their export related transactions.




                                       12
           Chronology of Gradual Liberalisation of Exchange Control Rules
                                  (By transaction)

                                                        2010

ECM6-Credit             Lending in ringgit by licensed onshore banks
Facilities to Non-      •   Allow licensed onshore banks to grant any amount of ringgit
residents                   trade financing to non-residents to finance the purchase or
                            sale of goods or services with residents

                                                        2008
                       Lending in ringgit by residents to non-residents

                        •   Allowed a resident company or individual to lend in ringgit of
                            any amount to non-resident non-bank companies and
                            individuals to finance activities in the real sector in Malaysia
                            (previously, only allowed up to RM10,000).

                        •   Allowed a licensed onshore bank to lend in ringgit of any
                            amount to non-resident non-bank companies and individuals
                            to finance activities in the real sector in Malaysia (previously,
                            only allowed up to RM10 million in aggregate).




                                                        2007
                       Abolition of registration requirements on residents as follows:
                       •   Ringgit-denominated loans exceeding RM50 million extended by
                           a resident to a non-resident for purchase or construction of
                           residential and commercial properties in Malaysia.

                        •   Investment in foreign currency assets exceeding RM50 million
                            equivalent by a resident (individual or company on corporate
                            group basis) without domestic ringgit borrowing.

                       Ringgit credit facility to non-resident
                       ▪   Abolish the previous RM200 million limit on ringgit overdraft
                           facilities to a non-resident stockbroking company or a custodian
                           bank to facilitate the settlement for purchase of ringgit
                           instruments traded on Bursa Malaysia to avoid settlement failure
                           due to inadvertent delays.

                        ▪   Abolish the limit on the number of residential or commercial
                            property loans obtained by a non-resident (previously limited to
                            only three loans).


                        ▪   Expand the scope on the utilisation of the overdraft facilities to
                            also include ringgit instruments settled through the Real Time
                            Electronic Transfer of Funds and Securities System.


                                          13
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

            Foreign currency credit facility to non-residents
             ▪    Allow a resident corporation (with or without domestic ringgit
                  credit facilities) to lend in foreign currency, the ringgit proceeds
                  from the listing of shares through an Initial Public Offering on the
                  Main Board of Bursa Malaysia to a non-resident.

             ▪    Allow a resident corporation with domestic ringgit credit
                  facilities convert ringgit into foreign currency up to RM50
                  million equivalent in aggregate per calendar year on
                  corporate group basis for lending to non-residents

             ▪    Allow a resident individual with domestic ringgit credit facilities to
                  convert ringgit into foreign currency up to RM1 million
                  equivalent in aggregate per calendar year for lending to non-
                  residents.

                                               2005
             ▪    Allow residents to convert ringgit into foreign currency for
                  lending to non-residents as follows:

                  (a)   Any amount for residents (corporations and individuals)
                        without domestic credit facilities.

                  (b)   Up to RM10 million per calendar year on a corporate
                        group basis by resident corporations with domestic
                        credit facilities.

                  (c)   Up to RM100,000 per calendar year by resident
                        individuals with domestic credit facilities.

             ▪    Allow residents to lend any amount to non-resident using own
                  foreign currency funds.

                                               2004
             Ringgit credit facility to non-resident
             ▪   Increase the aggregate overnight limit for overdraft facilities to
                 RM200 million from RM10 million, extended by authorised
                 dealers to a non-resident stockbroker or custodian bank to
                 facilitate settlement for the purchase of securities listed on
                 Malaysian Securities Exchange Berhad to avoid settlement
                 failure due to inadvertent delays.

             ▪    All permitted ringgit credit facilities for various purposes
                  extended by banking institutions to a non-resident (excluding
                  stockbroking company, custodian bank or correspondent bank)
                  are consolidated into one aggregate limit of RM10 million.
                                14
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)



                 The ringgit credit facilities may be used for any purpose in
                 Malaysia, except for financing/refinancing the purchase or
                 construction of immovable properties and the purchase of land
                 only.

             •   Residents (banks and non-banks) may extend ringgit credit
                 facilities in aggregate up to 3 property loans to a non-resident to
                 finance or refinance the purchase or construction of immovable
                 properties in Malaysia, except for purchase of land only.

            Issuance of Ringgit-Denominated Bonds in Malaysia by
            Multilateral Development Banks (MDBs) and Foreign
            Multinational Companies (MNCs)
            ▪    Applications for the following may be considered by Bank
                 Negara Malaysia on the merits of each case:

                 (a)    For Multilateral Development Banks (MDBs) and foreign
                        multinational companies (MNCs), which are not
                        incorporated in Malaysia but have presence in Malaysia
                        through subsidiaries or related companies, to issue
                        ringgit-denominated bonds in Malaysia. The ringgit-
                        denominated bonds may be purchased by resident and
                        non-resident investors;


                 (b)    For MDB and MNC issuers of ringgit-denominated bonds
                        to enter into forward foreign exchange contracts to sell
                        foreign currency for ringgit to meet coupon or principal
                        payment of the bonds; and

                 (c)    For non-resident investors purchasing the ringgit-
                        denominated bonds issued by MDBs and MNCs to
                        hedge their ringgit investments.
                                             2003
            Ringgit Overdraft Facilities to Non-residents
            ▪   Commercial banks and Islamic banks in Malaysia are now
                allowed to extend overdraft facilities in ringgit not exceeding
                RM500,000 in aggregate to a non-resident, provided such
                facilities are covered by fixed deposits placed by the non-
                resident with the commercial banks and Islamic banks in
                Malaysia.

             ▪   These overdraft facilities are in addition to all ringgit credit
                 facilities allowed to be extended freely by banking institutions
                 since 21 November 2002.


                               15
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

                                              2002
            Refinancing of Property Loans obtained by Non-residents
            •    Allow non-residents to refinance their domestic ringgit property
                 loans. This is subject to a maximum of three property loans.



            Financing of Projects undertaken by Non-residents in Malaysia
            ▪   Banking institutions in Malaysia are allowed to extend additional
                ringgit credit facilities to non-resident up to an aggregate of RM5
                million per non-resident to finance projects undertaken in
                Malaysia.

             ▪   Prior to this, credit facilities in ringgit to a non-resident, for
                 purposes other than purchases of three immovable properties or
                 a vehicle, were limited to RM200,000.

                                              2001
            Financing of Immovable Property in Malaysia by Non-residents
            ▪   Allow resident financial institutions to extend credit facilities in
                ringgit to non-residents to finance the purchase or construction
                of any property in Malaysia (excluding for the purchase of land
                only), subject to their own internal credit assessment guidelines.

             ▪   Resident companies are allowed to extend credit facilities to
                 their non-resident employees subject to terms and conditions of
                 employment to finance the purchase or construction of property
                 (excluding for the purchase of land only) in Malaysia.

            •    A non-resident may only obtain, at any one point in time, a
                 maximum of three property loans (including loans obtained in
                 foreign currency and from resident companies under the terms
                 and conditions of employment and from resident financial
                 institutions).

            Financing of Immovable Property in Malaysia by Non-residents
            •   Allow banking institutions in Malaysia to extend credit facilities in
                ringgit to finance the purchase and/or construction of one
                immovable property for non-residents who participate in the
                Silver Hair Programme implemented by the Immigration
                Department of Malaysia.

                                              2000
            Ringgit Credit Facilities to Non-Residents
            ▪   Allow licensed commercial banks and Bank Islam Malaysia
                Berhad in Malaysia to extend in aggregate an intra-day
                overdraft facility of not exceeding RM200 million and an
                overnight facility of not exceeding RM10 million to non-resident
                               16
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

                 stockbroking companies and non-resident global custodian
                 banks to finance funding gaps due to inadvertent delay in
                 relation to settlement for trade on the KLSE.

             ▪   In addition, they can also enter into short-term currency swap
                 and/or outright forward contracts to cover for purchase of
                 shares on the KLSE.

                                            1999
            Ringgit Credit Facilities to Foreign Stockbroking Companies
            ▪   Licensed commercial banks and Bank Islam Malaysia Berhad
                in Malaysia were freely allowed to extend overdraft facility in
                aggregate of not exceeding RM200 million for intra-day and
                not exceeding RM5 million for overnight to non-resident
                stockbroking companies.




                              17
          Chronology of Gradual Liberalisation of Exchange Control Rules
                                 (By transaction)

                                                 2011
ECM7-Foreign
Currency Accounts     Foreign currency accounts of residents
                       (i)   Joint foreign currency accounts
                             •   A resident individual is free to open and maintain a joint
                                 foreign currency account with a non-resident individual
                                 who is an immediate family member, for any purpose.

                                 Conversion of ringgit into foreign currency by the
                                 resident individual for placement into the joint foreign
                                 currency account will continue to be subject to the
                                 prevailing rules on investment in foreign currency
                                 assets.


                       (ii) Foreign currency account for education and employment
                             •   The existing limits on the aggregate overnight balance of
                                 foreign currency accounts maintained by residents for
                                 education and employment purposes are abolished.


                                                     2007
                      Abolition of reporting requirements
                      •   With effect from 1 January 2008, the requirement on resident
                          companies to submit the Overseas Account Statement
                          (Statement OA) was abolished.

                       Joint foreign currency account by resident individuals
                       ▪    Allow resident individuals to open and maintain joint foreign
                            currency accounts for any purpose.

                                                      2005
                       Offshore foreign currency account
                       ▪   Allow residents to open foreign currency accounts with offshore
                           banks for any purpose except for retention of export receipts.

                      Uplift limit on export foreign currency account
                      ▪    The aggregate overnight limits imposed on export foreign
                           currency accounts maintained by residents with licensed
                           onshore banks are abolished.

                                                       2004
                      Threshold on export foreign currency account (FCA) by
                      Approved Operational Headquarters (OHQ)
                      ▪   The overnight limit has been increased to USD100 million from
                          USD70 million.


                                         18
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

            Threshold on export FCA by resident exporters
            •   Increase the limits on export FCA based on the average monthly
                export proceeds as follows:

                 Overnight limit            Average monthly export receipts
                   (USD mil)
                      100              Exceeding RM100 million
                       60              Exceeding RM50 million up to RM100 million
                       30              Up to RM50 million or new exporters

            Opening and maintaining of non-export FCA by resident
            corporations
            ▪   Resident companies, with or without domestic borrowings, may
                open non-export FCA with:

                   (a)   Authorised dealers with no overnight limits; and

                   (b)   Licensed offshore banks in Labuan up to an aggregate
                         overnight limit of USD500,000.

             •     Resident companies may also merge their onshore export FCA
                   and non-export FCA

             Opening and maintaining of FCA by resident individuals
             ▪   Resident individuals may maintain FCA to facilitate education
                 and employment abroad as follows:

                   (a)   Authorised dealers up to an aggregate overnight limit
                         of USD150,000;
                   (b)   Licensed offshore banks (excluding licensed offshore
                         investment banks) up to an aggregate overnight limit of
                         USD150,000; and
                   (c)   Overseas banks up to an aggregate overnight limit of
                         USD50,000.

                   Funds to be credited into these accounts may be sourced from
                   the conversion of ringgit, subject to compliance with the limit
                   imposed.

             ▪     Resident individuals with foreign currency funds abroad may
                   maintain receivables FCA onshore and offshore, including with
                   licensed offshore banks (excluding licensed offshore investment
                   banks) in Labuan, without any limit.

                   The account must be funded solely from foreign currency
                   funds sourced from abroad with no conversion from ringgit.


                                 19
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

                                               2003
             ▪     Increase the export foreign currency account (export FCA)
                   overnight limit for Approved Operational Headquarters has been
                   increased from USD10 million to USD70 million.

             •     The limits on foreign currency export proceeds retained by
                   resident exporters in export FCA have also been raised. The
                   revised limits, based on the average monthly export proceeds
                   are as follows:

                 Overnight limit          Average monthly export proceeds
                   (USD mil)
                      50             Exceeding RM100 million
                      30             Exceeding RM50 million up to RM100 million
                      10             Exceeding RM20 million up to RM50 million
                       5             Exceeding RM10 million up to RM20 million
                       3             Exceeding RM5 million up to RM10 million
                       1             Not exceeding RM5 million or new exporters




                                20
          Chronology of Gradual Liberalisation of Exchange Control Rules
                                 (By transaction)

                                                        2005

ECM8 – Domestic        Domestic Credit Facilities to Non-Resident Controlled
Credit Facilities to   Companies
Non-Resident           •  Allow residents (bank and non-bank) to extend any amount of
Controlled Companies      domestic credit facilities to Non-Resident Controlled Companies
                          (NRCC).

                       ▪    Abolish the RM50 million limit and 3:1 gearing ratio requirement
                            for domestic credit facilities obtained by NRCC above the RM50
                            million limit.
                                                          2003
                       Domestic Credit Facilities to Non-Resident Controlled
                       Companies
                       •  Abolish the requirement that at least 50% of all credit facilities
                          extended by banking institutions must be extended by
                          Malaysian-owned banking institutions.

                       ▪    In addition, credit facilities that can be granted by residents to
                            NRCCs have been revised to RM50 million from RM10 million in
                            aggregate.

                       ▪    The NRCC would have to continue to comply with the 3:1
                            gearing ratio requirement of domestic debt against eligible
                            capital funds.

                                                       2002
                       Overdrawing of Ringgit Account by Non-Resident Controlled
                       Companies
                       •   Licensed banks are also permitted to allow NRCCs to overdraw
                           their current accounts for amounts to overdraw their current
                           accounts for amounts of up to RM500,000 per account for a
                           period not exceeding 2 working days.

                                                        2000

                       Domestic Credit Facilities extended by Resident Banking
                       Institutions to Non-Resident Controlled Companies
                       ▪     Foreign-owned banking institutions in Malaysia may extend up
                             to 50% of the total domestic credit facilities to non-resident
                             controlled companies (NRCCs) from the maximum of 40%
                             funding previously.

                       ▪    This is to fulfil Malaysia's commitment under the General
                            Agreement on Trade and Services (GATS).




                                          21
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

            Private Debt Securities (PDS)
            •    Resident companies in Malaysia are freely allowed to issue PDS
                 for permitted purposes without prior written approval from BNM.

             ▪   PDS to be issued by non-resident controlled companies
                 (NRCCs) would be exempted from the RM10 million limit and
                 the 50:50 requirement for issuance of PDS on tender basis
                 through the Fully Automated System for Tendering (FAST).

             ▪   Allows residents to extend credit facilities in ringgit to an NRCC
                 operating in Malaysia up to an aggregate limit of RM10 million
                 per corporate group and any amount of short-term trade
                 financing where the tenure does not exceed 12 months.

             •   Foreign-owned banking institutions may only extend credit
                 facilities to NRCC up to a maximum of 50%, with the balance
                 from Malaysian-owned banking institutions.




                               22
          Chronology of Gradual Liberalisation of Exchange Control Rules
                                 (By transaction)

                                                       2011
                      Direct Investment Abroad
ECM9-Investment       •    The Bank will grant written permission to qualified resident
Abroad                     companies that meet prudential requirements to undertake
                           any amount of direct investment abroad.

                       •    For monitoring purposes, the qualified resident company is
                            required to register online the investment exceeding RM50
                            million equivalent with the Bank prior to the remittances.

                                                       2008
                       Investment in foreign assets
                       •    Exclude investments in USD denominated crude palm oil
                            futures contract (USD FUPO) from the investment in foreign
                            currency assets rule, if resident investors-
                                pay in ringgit to commodity futures brokers for the
                                purchase of USD FUPO; and

                               receive in ringgit from the commodity futures brokers the
                               proceeds arising from the investment in USD FUPO.

                       •    Investment in USD FUPO on Bursa Malaysia by residents will be
                            subject to investment in foreign currency assets rule, if the
                            resident investors-
                                pay in foreign currency to commodity futures brokers for
                                the purchase of USD FUPO; and

                               receive in foreign currency or ringgit from the commodity
                               futures brokers the proceeds arising from the investment in
                               USD FUPO.

                                                       2007
                      Abolition of registration requirements on residents
                      •   Investment in foreign currency assets exceeding RM50 million
                          equivalent by a resident (individual or company on corporate
                          group basis) without domestic ringgit borrowing.

                      Investment by a resident corporation
                      ▪    Allow a resident corporation to utilise proceeds offshore
                           arising from the listing of shares through an Initial Public
                           Offering on the Main Board of Bursa Malaysia.

                       ▪    Allow a resident corporation to utilise up to RM100 million
                            equivalent from permitted foreign currency credit facilities for
                            investment in foreign currency assets.

                                         23
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)



             ▪    Allow a resident corporation with domestic ringgit credit facilities
                  to convert ringgit into foreign currency up to RM50 million in
                  aggregate per calendar year on a corporate group basis for
                  investment in foreign currency assets (previously up to RM10
                  million).

            Investment by a non-resident corporation
            ▪    Allow a non-resident corporation to utilise offshore, proceeds
                 arising from the listing of shares through an Initial Public
                 Offering on the Main Board of Bursa Malaysia.

            Investment by an individual
            ▪    Allow a resident individual with domestic ringgit credit facilities to
                 convert ringgit into foreign currency up to RM1 million in
                 aggregate per calendar year for investment in foreign currency
                 assets (previously up to RM100,000).

             Investment by resident institutions
             ▪    Allow a resident unit trust company to invest in foreign currency
                  assets up to 50% of the Net Asset Value (NAV) attributable to its
                  resident investors (previously up to 30% of the NAV).

             ▪    Allow a resident fund management company to invest in foreign
                  currency assets up to 50% of the funds managed for its resident
                  clients with domestic ringgit credit facilities (previously up to
                  30% of the funds).


             •    Allow resident insurer and a takaful operator to invest in foreign
                  currency assets up to:
                      50% of the NAV of the investment-linked funds marketed by
                      them (previously up to 30% of the NAV).
                      10% of margin of solvency for insurer
                      5% of total assets for takaful operator

             ▪    Abolish the thresholds (50% of net asset value (NAV) for unit
                  trust companies and total funds attributable to residents with
                  domestic ringgit borrowing for fund management companies)
                  on investments of Islamic funds in foreign currency assets.




                                24
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

                                             2005
            Investment by residents
            ▪    Allow residents to convert ringgit into foreign currency for
                 investment abroad, including lending to non-residents and
                 crediting into own foreign currency accounts maintained with
                 licensed onshore banks and offshore banks as follows:

                  (a)   Any amount for residents (corporations and individuals)
                        without domestic credit facilities.

                  (b)   Up to RM10 million per calendar year on a corporate
                        group basis by resident corporations with domestic
                        credit facilities.

                  (c)   Up to RM100,000 per calendar year by resident
                        individuals with domestic credit facilities.

             ▪    Allow residents to invest any amount abroad using own foreign
                  currency funds maintained onshore or offshore.

            Investment by resident institutions
            ▪    Allow resident unit trust companies to invest up to 30% of the
                 Net Asset Value (NAV) attributable to their resident investors.

             ▪    Allow resident asset/fund management companies to invest
                  abroad:
                  (a) Any amount of funds of resident clients with no
                       domestic credit facilities; and
                  (b)   Up to 30% of the funds managed for resident clients
                        with domestic credit facilities.

             ▪    Allow resident insurance companies and takaful operators to
                  invest abroad up to 30% of NAV of the investment-linked
                  funds they market.
                                             2004
             Authorised dealers and approved merchant banks
             ▪   Uplift the requirement for authorised dealers and approved
                 merchant banks to finance the purchase of foreign currency
                 securities issued offshore by residents solely from offshore
                 borrowings.

             Investment by an individual
             ▪    Resident individuals employed or staying abroad may use their
                  foreign currency funds abroad to invest in any foreign currency
                  assets.
                                25
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)



             ▪   Resident individuals in Malaysia who have foreign currency
                 funds may invest in foreign currency products offered by
                 authorised dealers.
            Investment by resident institutions
            ▪    Allow unit trust management companies to invest abroad up
                 to the full amount of Net Asset Value (NAV) subscribed by
                 non-residents and up to 10% of the NAV per fund
                 subscribed by residents.

             ▪   Allow insurance companies and takaful operators to invest
                 abroad up to 5% of their Margin of Solvency (MOS) and up
                 to 5% of their total assets respectively.

             ▪   Insurance companies and Takaful operators may invest
                 abroad up to 10% of the NAV of investment-linked funds
                 that they market.

             ▪   Fund/asset managers may invest abroad up to the full
                 amount of investments by their non-resident clients and up
                 to 10% of investments by resident clients.

                                            2002
            Investment Abroad by Residents in Employee Share Option
            Purchase Scheme (ESOS)
            ▪    Remove the limit of RM10,000 equivalent in foreign currency for
                 investment abroad by residents under the Employee Share
                 Option/Purchase Scheme.

             ▪   Effective this date, general permission is granted for overseas
                 investment for this purpose.




                              26
            Chronology of Gradual Liberalisation of Exchange Control Rules
                                   (By transaction)

                                                         2012

ECM10 - Foreign          Swapping of ringgit or foreign currency debt obligation into
Currency Credit          another foreign currency debt obligation for asset liability
Facilities and Ringgit   management
Credit Facilities From
                         •   Allow a resident to enter into a transaction with -
Non-residents
                             (a) a licensed onshore bank to convert an existing ringgit
                                  debt obligation into a foreign currency debt obligation
                                  subject to the condition that there is no actual delivery of
                                  the foreign currency at the inception of the transaction;
                                  or
                             (b) a licensed onshore bank, an International Islamic Bank
                                  or a non-resident to convert an existing foreign currency
                                  debt obligation into another foreign currency debt
                                  obligation.

                                                         2011
                         Inter-company borrowing
                         •    Allow a resident company to borrow any amount in foreign
                              currency from a resident associate and sister company.

                         •    Allow a resident company to borrow any amount in ringgit
                              from its non-resident non-bank related company to finance
                              activities in the real sector in Malaysia. However, borrowings
                              in ringgit from the non-resident related company which is
                              solely set up to obtain foreign currency loans from a non-
                              resident financial institution continues to be subject to the
                              prevailing RM1 million limit on ringgit borrowings by residents
                              from non-residents.

                         Foreign currency-denominated trade financing
                         •   The RM5 million limit imposed on foreign currency-
                             denominated trade financing obtained by residents from non-
                             residents is no longer applicable. Residents may obtain
                             foreign currency borrowing, including foreign currency-
                             denominated trade financing, up to the prevailing aggregate
                             limit of RM100 million equivalent for companies on a
                             corporate group basis and RM10 million equivalent for
                             individuals.

                                                         2010
                         Borrowing in Foreign Currency by Residents
                         •   Allow resident companies to borrow any amount in foreign
                             currency from non-resident non-bank related companies#


                                           27
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

            #
                 Related companies include the ultimate holding, parent/head office,
                 subsidiary/branch, associate or sister (common shareholder) company.
                                                  2008
            Borrowing in foreign currency by residents
            •   Allowed a resident company to borrow any amount in foreign
                currency from:
                    Its non-resident non-bank parent company;
                    Other resident companies within the same corporate group
                    in Malaysia (Previously approval is required for any amount);
                    and
                    Licensed onshore banks and licensed International Islamic
                    Banks

             •      Allowed a resident company to obtain any amount of foreign
                    currency supplier’s credit for capital goods from non-resident
                    suppliers

             •      Allowed a resident company or an individual to refinance
                    outstanding approved foreign currency borrowing, including
                    principal and accrued interest

                    The thresholds for foreign currency borrowing of RM100
                    million in aggregate by a resident company on a corporate
                    group basis and RM10 million for a resident individual is not
                    applicable to the above financing activities.

            Borrowing in ringgit by residents from non-residents

             •      Allowed a resident company to borrow in ringgit, including
                    through the issuance of ringgit-denominated redeemable
                    preference shares or loan stocks:
                        of any amount from its non-resident non-bank parent
                        company to finance activities in the real sector in
                        Malaysia; and
                        up to RM1 million in aggregate from other non-resident
                        non-bank companies and individuals for use in Malaysia;
                        and

             •      Allowed a resident individual to borrow in ringgit up to RM1
                    million in aggregate from non-resident non-bank companies
                    and individuals for use in Malaysia

                    Previously, borrowing in ringgit of any amount from non-
                    residents required prior permission of the Controller of
                    Foreign Exchange.

                                  28
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

                                             2007
            Abolition of registration requirements on residents for foreign
            currency borrowings as follows:
            •    Borrowings in aggregate between RM50,000,001 and up to
                 RM100 million equivalent by a resident company on a corporate
                 group basis from licensed onshore banks and non-residents.

             •   Borrowings exceeding RM50 million equivalent by an Approved
                 Operational Headquarters from licensed onshore banks and
                 non-residents to finance its own operation.

             •   Borrowings exceeding RM50 million equivalent by a resident
                 company from another resident company within the same
                 corporate group using proceeds from an Initial Public Offering on
                 foreign stock exchanges.

             •   Prepayment exceeding RM50 million equivalent on permitted
                 foreign currency borrowing from a non-resident lender


            Threshold of foreign currency credit facilities
            ▪   Increase the limit of foreign currency credit facilities obtained by
                a resident corporation from a licensed onshore bank and a non-
                resident and also through the issuance of onshore foreign
                currency bonds, to RM100 million equivalent in aggregate, on
                corporate group basis (previously up to RM50 million).

             ▪   Allow a resident corporation to borrow in foreign currency within
                 the same corporate group, the proceeds arising from listing of
                 shares on the foreign stock exchanges.

             ▪   Allow the proceeds from the foreign currency credit facilities to
                 be used in Malaysia or offshore.

                                              2005
             ▪   Increasing limits on foreign currency credit facilities that can be
                 obtained by residents from licensed onshore banks, licensed
                 merchant banks and non-residents as follows:

                 (a)   Up to an equivalent of RM50 million in aggregate for
                       resident companies on corporate group basis; or

                 (b)   Up to an equivalent of RM10 million in aggregate for
                       resident individuals;



                               29
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

             ▪   Allowing prepayment of foreign currency credit facilities; and

             ▪   Allowing residents to use up to RM10 million equivalent in
                 foreign currency credit facilities obtained onshore or offshore to
                 finance investment abroad activities.




                               30
           Chronology of Gradual Liberalisation of Exchange Control Rules
                                  (By transaction)

                                                      2007
ECM11-Inter-           Abolition of reporting requirements
Company Accounts       •   With effect from 1 January 2008, the requirement on resident
                           companies to submit the Inter-company Account Statement
                           (Statement IA) was abolished.

                                                        2005
                        Private Debt Securities
ECM12-Securities
                        ▪    Revoking the guidelines on private debt securities for lead
                             arrangers issued on 30 June 2000.

                                                      2012
 ECM13-Import and       Import and export of foreign currency
 Export of Currency     •   Abolished the limits on import and export of foreign currency
                            notes and traveller’s cheque.
                                                      2010
                        ▪   Allow resident and non-resident travellers to import –
                                ringgit notes up to USD10,000 equivalent; and
                                any amount of foreign currency notes.

                        ▪    Allow resident travellers to export ringgit notes, foreign
                             currency notes and traveller’s cheques up to an aggregate
                             amount of USD10,000 equivalent.

                        ▪    Allow non-resident travellers to export –
                                 ringgit notes up to USD10,000 equivalent; and
                                 foreign currency notes and traveller’s cheques up to the
                                 amount brought into Malaysia.
                                                         2000
                        ▪    Residents and non-residents is not required to make a
                             declaration in the Travellers Declaration Form (TDF) as long as
                             they carry currency notes and/or traveller’s cheques within the
                             permissible limits.

                        •    For non-residents, the declaration would be incorporated into the
                             Embarkation Card issued by the Immigration Department

                                                       1999
                       Import and Export of Ringgit
                       ▪   Border traders who carry out their trades between Malaysia and
                           Thailand at specified border areas (Bukit Kayu Hitam in Kedah,
                           Padang Besar and Wang Kelian in Perlis, Pengkalan Hulu in
                           Perak, Pengkalan Kubor, Bukit Bunga and Rantau Panjang in
                           Kelantan) can carry up to RM10,000.

                        ▪    Border traders will be issued with Traveller’s Declaration Pass
                             (TDP) and are not required to complete the TDF.

                                          31
          Chronology of Gradual Liberalisation of Exchange Control Rules
                                 (By transaction)

                                                         2005
                       Dealings with Specified Persons
ECM14-Dealings
with Speciafied        ▪    The restriction on dealing with Serbia and Montenegro is lifted.
Persons and in         ▪    Accordingly,
Restricted                  (a) “Restricted Currencies” means the currency of the
                                 State of Israel; and

                            (b)   “Specified Persons” means –
                                   (i) The State of Israel or their residents;
                                   (ii) The authorities of the State of Israel;
                                   (iii) The agencies and instrumentalities of the State
                                         of Israel or its residents;
                                   (iv) Any entity owned by or controlled directly or
                                         indirectly by the State of Israel or its residents;
                                         and
                                   (v) Individual or entity as listed pursuant to the
                                         United Nations Security Council Resolution
                                         (UNSCR) No. 1333 (2000) and No. 1267 (1999)
                                         relating to Osama bin Laden and The Taliban,
                                         UNSCR 1532 (2004) relating to Liberia and
                                         UNSC 1483 (2003) relating to Saddam Hussein.




                                           32
          Chronology of Gradual Liberalisation of Exchange Control Rules
                                 (By transaction)

                                                      2007
ECM15-Labuan           ▪   Abolish the restriction on Labuan offshore banks to transact in
International              ringgit instruments on behalf of non-resident clients.
Offshore Financial
Centre
                                                       2000
                      Licensed Offshore Banks in Labuan International Offshore
                      Financial Centre
                      ▪    Licensed Offshore Banks in Labuan would be allowed to invest
                           in ringgit assets/instruments in Malaysia for their own accounts
                           only and not on behalf of their clients.

                       ▪   The investments must not be financed by ringgit borrowing and
                           must be transacted directly with onshore banks and brokers.

                                                      1998
                       ▪   Licensed Offshore Banks can receive fees and commissions
                           in ringgit.




                                         33
         Chronology of Gradual Liberalisation of Exchange Control Rules
                                (By transaction)

                                                      2011
ECM16-Approved        Inter-company borrowing
Operational           •    Allow a resident company to borrow any amount in foreign
Headquarters
                           currency from a resident associate and sister company.

                      •   Allow a resident company to borrow any amount in ringgit
                          from its non-resident non-bank related company to finance
                          activities in the real sector in Malaysia. However, borrowings
                          in ringgit from the non-resident related company which is
                          solely set up to obtain foreign currency loans from a non-
                          resident financial institution continues to be subject to the
                          prevailing RM1 million limit on ringgit borrowings by residents
                          from non-residents.

                     Foreign currency-denominated trade financing
                     •   The RM5 million limit imposed on foreign currency-
                         denominated trade financing obtained by residents from non-
                         residents is no longer applicable. Residents may obtain
                         foreign currency borrowing, including foreign currency-
                         denominated trade financing, up to the prevailing aggregate
                         limit of RM100 million equivalent for companies on a
                         corporate group basis and RM10 million equivalent for
                         individuals

                                                      2007
                      ▪   Allow an Approved Operational Headquarters (OHQ) with
                          domestic ringgit credit facilities to convert ringgit into foreign
                          currency up to RM50 million per calendar year for investment in
                          foreign currency assets (previously up to RM10 million).

                                                      2005
                      •   Allow OHQ to:

                          (a)   Retain any amount of export proceeds in their
                                foreign currency accounts maintained with licensed
                                onshore banks;

                          (b)   Obtain any amount of domestic ringgit credit
                                facilities; and

                          (c)   Invest any amount abroad, including extension of
                                credit facilities to non-residents, if financed with own
                                foreign currency funds or with foreign currency credit
                                facilities. The company may also convert ringgit into

                                        34
Chronology of Gradual Liberalisation of Exchange Control Rules
                       (By transaction)

                       foreign currency to finance investment abroad up to:

                       (i) Any amount if it does not have any domestic
                           ringgit credit facilities; or

                       (ii) RM10 million equivalent if it has domestic ringgit
                            credit facilities.




                              35
      Chronology of Gradual Liberalisation of Exchange Control Rules
                             (By transaction)

                                                   2001
                  Abolition of the Levy System
Levy system
                  •   The levy was completely abolished on 2 May 2001.

                  Exit Levy System
                  •    With effect from 1 February 2001, the 10% levy would apply only
                       on profits made from portfolio investments by non-residents,
                       which are repatriated 12 months or less from the month the
                       profits are realised.

                                                   1999
                  Standardised Levy of 10%
                  •   All funds brought into Malaysia between 1 September 1998 and
                      14 February 1999 is exempted from levy on the principal sum.

                  •    All profits repatriated from the Special External Accounts are
                       subject to a standard levy of 10%.

                  Exclusion of Property from Exit Levy
                  ▪   No levy will be imposed on the repatriation of proceeds from
                      sale of investments in immovable property.

                  Introduction of the Levy System
                  ▪    As economic condition stabilised, the 12-month holding period
                       was replaced by an exit levy system on 15 February 1999.

                   ▪   The rule requiring non-residents to hold their principal sum of
                       portfolio investments for at least 12 months in Malaysia was
                       replaced by a two-tiered exit levy system.




                                     36

				
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