Thursday, September 27, 2007

Bank Negara further relaxes forex admin rules

BusinessTimes

BANK Negara Malaysia (BNM) has further relaxed certain foreign exchange administration rules to cut cost of doing business in Malaysia.

Taking effect from October 1, the changes include abolition of the five registration requirements and granting greater flexibility for Islamic funds managed onshore.

Non-Malaysians will also have more flexibility in hedging their ringgit exposure under the easier rules, BNM said in an announcement on its website, dated September 20.

Malaysia has been gradually relaxing foreign exchange administration rules to attract investors.

"The move is consistent with the spirit of Budget 2008 measures to cut cost of doing business in Malaysia and enhance the public delivery system, all for raising the nation's competitiveness," said Bank Islam Malaysia Bhd senior economist Azrul Azwar Ahmad Tajudin.

Among others, the central bank said that five types of currency-related transaction would no longer need to be registered, although they would still need authorities' approval.

"Doing away with certain registrations would mean less hassle for investors," Azrul said.

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