Remittance Procedures

Any remittance to an overseas destination, of an amount of RM100,000 and above, or its equivalent in foreign currency, for any purpose such as a child’s education, opening of a savings account overseas, repatriation of capital or profits are freely permitted subject only to the completion of a statistical form which is available from any commercial bank.  Banks re authorised to approve such remittances, irrespective of the amount.  However, the following types of remittances are required to be referred to the Controller of Foreign Exchange for approval.

·         For purpose of investing in securities or immovable property abroad.

·         For extending credit to or placement of deposits with non-residents, whenever such transactions are financed by any credit facility in Malaysia.

Export Proceeds

Any person in Malaysia who exports goods of any class or description to any territory outside Malaysia must comply with the followings: —

1.       A Form KPWX is completed for each export (other than exports for which declaration forms are submitted through Port Klang Community System of other community system under EDI systems, the value of which as declared in the relevant export declaration form of the Customs/Free Zone exceeds RM100,000 f.o.b. per shipment and the form is delivered to the proper officers of the Customs or the Free Zone at the time of export.

2.       Payments for the export shall be received in Malaysia by the exporter in full and in the prescribed manner when contractually due, but in any case not later than six months form the date of export.

3.       Partial payment for the export may be made —

·         Only when the exporter does not own the goods but is charging the non-resident consignee and owner the fees due for services rendered on the goods; or

·         When the export item is timber, and partial payment is the result of a deduction for commission payable to the buyer’s agent and such commission amounts to not more than 5% of the f.o.b. value of the timber; and

·         In the prescribed manner and when contractually due, which in any case should not be later than six months form the date of export and the exporter completes and submits a Form %A to the Controller; or

4.       Non-payment for the export of goods is permitted for the following cases —

·         For further processing and re-import;

·         For testing and/or repairing and re-import;

·         For exchange and re-import;

·         As business samples;

·         For exhibition in a foreign country and re-import;

·         For re-export after exhibition in Malaysia;

·         For re-export of equipment belonging to a non-resident upon expiry of the lease or rental period; or

·         As personal effects or gifts,

Subject to the exporter completing and submitting a Form 5A to the controller.

5.       The export proceeds received in foreign currency are sold for Ringgit to an authorised dealer or deposited in permitted foreign currency account with a designated bank., subject to the limits imosed in ECM7 and ECM16.

6.       The exporter submits to the Controller a quarterly report listing all exports exceeding RM100,000 f.o.b. per shipment for which payment would be received whether in full or in part, within 21 days after the end of the quarter being reported and the quarterly report is certified in the following manner —

·         By an independent professional auditor or a duly authorised bank offier for the total export proceeds exceeding the equivalent of RM2 million received during the quarter; or

By the exporter or any person authorised by him for total export proceeds up to the equivalent of RM2 million received during the quarter.