28 April 2021
On 31 March 2021, Bank Negara Malaysia (“BNM”) announced further liberalisation of foreign exchange policy by way of revised foreign exchange notices (“Notices”). The Notices, which came into effect on 15 April 2021, provide greater flexibility to businesses and are part of BNM’s continued efforts to strengthen Malaysia’s position in the global supply chain and foster a conducive environment in attracting foreign direct investment into Malaysia.
Some of the key measures under the Notices include the following:
- Resident exporters may now manage the conversion of export proceeds according to their foreign currency cash flow needs;
- Resident exporters can settle domestic trade in foreign currency with other residents involved in the global supply chain;
- Resident exporters can extend the period for repatriation of export proceeds beyond six months under exceptional circumstances;
- Resident exporters can net-off export proceeds against permitted foreign currency obligations; and
- Resident corporates can undertake commodity derivatives hedging directly with non-resident counterparties.