Non-residents may borrow in foreign currency or in ringgit from any onshore bank subject to limit and purpose.

Borrowing in Foreign Currency (FC)

A non-resident entity is free to obtain foreign currency (FC) borrowing from any licensed onshore bank to 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 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;

A non-resident custodian bank, stockbroking corporation, trust bank or international central securities depository (acting on behalf of non-resident investors) or a non-resident investor buying ringgit instruments (for its own account) on Bursa Malaysia or RENTAS may obtain overdraft facilities from licensed onshore banks (up to 2 business days) to mitigate settlement failure due to inadvertent payment delays.

A non-resident can borrow in ringgit from a licensed onshore bank up to RM10 million in aggregate via a repurchase agreement or sale buy back agreement.