Foreign Exchange Administration
The rules in relation to Foreign Exchange Administration are as follows:

Foreign Exchange Administration Rule
Resident unit trust companies, closed-end funds, entities offering collective investment schemes and fund managers are allowed to invest abroad on behalf of their resident and non-resident clients- 
  • up to 100% of Net Asset Value (NAV) or total funds belonging to resident clients without domestic ringgit borrowing and non-resident clients; 
  • up to 50% of NAV or total funds belonging to their resident clients with domestic ringgit borrowing. 

For further information, kindly refer to BNM’s website at http://www.bnm.gov.my.

Foreign Exchange Control Issues / Impact on ASEAN CIS 
  • RM denominated ASEAN CIS (“RM CIS”) must be offered only in Malaysia; 
  • All RM settlement and management of RM exposure arising from the issuance of CIS shall be undertaken with an onshore bank; 
  • Where proceeds from the RM CIS will be invested abroad, such proceeds shall be converted to foreign currency with an onshore bank before remittance abroad; 
  • Proceeds from the RM CIS shall not be used for investment in RM derivatives or RM instruments offered offshore; 
  • Resident and non-resident fund managers meet the following eligibility criteria as set out by SC to fully utilise the RM CIS proceeds for investment abroad: 
(i) CIS is offered in at least 2 other foreign jurisdictions; 
(ii) 2/3 of CIS is raised outside of Malaysia. 


For further information, kindly refer to SC’s website at http://www.sc.com.my.

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