Borrowing in Foreign Currency (FC)

A non-resident is free to obtain foreign currency (FC) borrowing from any licensed onshore bank to use in or outside Malaysia.

A non-resident is free to issue FC-denominated sukuk/bonds in Malaysia for use in or outside Malaysia.

Borrowing in Ringgit

A non-resident other than financial institution is free to borrow in ringgit:

1. Any amount from any resident (including a licensed onshore bank) to finance or refinance *real sector activities in Malaysia.
2. Any amount from immediate family members for any purpose;
3. Any amount from employer in Malaysia under the employment terms and conditions for use in Malaysia;
4. Any amount of margin financing from:
   • a resident stock-broking corporation; or
   • a licensed onshore bank with stockbroking license,

   to purchase securities or financial instruments traded on Bursa Malaysia; or

5. Up to attained cash surrender value of any life insurance policy or family takaful certificate purchased from licensed insurer or a licensed takaful operator.

A non-resident custodian bank, stockbroking corporation, trust bank or international central securities depository acting on behalf of non-resident investor or a non-resident investor purchasing shares or ringgit instrument traded on Bursa Malaysia or RENTAS for its own account is allowed to obtain overdraft facilities (maximum tenure of 2 business days) from licensed onshore banks solely for the purpose of mitigating settlement failure for ringgit securities and instruments due to **inadvertent delay of payment by the non-resident.

* "activities in the real sector" means activities relating to –

• - the production or consumption of goods or services, other than -
  • > activities in the financial services sector, whether Islamic or otherwise;
  • > the purchase of security or Islamic security;
  • > the purchase of financial instrument or Islamic financial instrument; or
• - the construction or purchase of a residential or commercial property excluding the purchase of land only.

** "inadvertant" refers to system failure or payment glitch due to unplanned events.