KUALA LUMPUR: Financial institution Negara has introduced 5 new
KUALA LUMPUR: Financial institution Negara has introduced 5 new measures to additional liberalise the international trade coverage (FEP) to permit better flexibility for companies and to foster a conducive surroundings in attracting international direct funding (FDI) to Malaysia.
The central financial institution can be lifting the export conversion rule, which can enable resident exporters to handle their very own export conversions based on their international trade money move wants.
Secondly, exports can be allowed to settle home commerce in international forex with different resident corporates working within the world provide chain.
Exporters can even be allowed to internet off export proceeds in its permitted international forex obligations as a transfer to reinforce enterprise effectivity and money move administration for exporters.
The fourth measure permits exporters to repatriate their export proceeds past six months in distinctive circumstances akin to when their patrons are in monetary problem.
Lastly, resident corporates can now undertake commodity derivatives hedging straight with non-resident counterparties.
The 5 new measures will come into impact on April 15 and additional particulars can be supplied on the identical day within the revised Overseas Trade Notices issued by Financial institution Negara.
Financial institution Negara Governor Datuk Nor Shamsiah Mohd Yunus mentioned the central financial institution has lately progressively liberalised its FEP to enhance each enterprise effectivity and the non-public sector’s administration of international trade threat.
“Recognising Malaysia’s important place within the world provide chain and to foster a extra conducive surroundings in attracting high quality investments, the financial institution is happy to announce the additional liberalisation measures,” she mentioned throughout a media briefing at the side of the central financial institution’s launch of its Annual Report 2020, Financial and Financial Assessment 2020 and the Monetary Stability Assessment for the second half 2020.