| In Malaysia, certain transactions involving foreign exchange require the approval
of Bank Negara Malaysia and the Foreign Investment Committee (FIC) under the Economic Planning Unit (EPU) of the Prime Minister’s Department. Malaysia maintains a liberal foreign exchange administration regime and the implementation of foreign exchange administration rules supports the monitoring of capital flows into and out of the country to preserve its financial and economic stability.
These rules complement the country’s overall macroeconomic policies and are reviewed regularly in line with the changing environment. Reviews are aimed at reducing the cost of doing business, improving the regulatory delivery system and encouraging better risk management activities by residents and non-residents as well as promoting the development of a domestic foreign exchange market to promote stability in the financial system and economy.
In March 2007, the Malaysian Government announced several measures to relax and simplify the country's foreign exchange administration and FIC rules to facilitate investments by foreigners in selected sectors. The FIC under the Economic Planning Unit (EPU) of the Prime Minister's Department formulates the country's policies and strategies for socio-economic development.
It also governs the purchases of property by foreign and local interests, and all mergers and acquisitions related to companies. This is to ensure that they are in line with the country's corporate equity restructuring objectives.
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