BNM Announces Foreign Exchange Policy liberalisation For MDBs, Qualified Non-resident DFIs

KUALA LUMPUR, Nov 15 (Bernama) -- Bank Negara Malaysia (BNM) today announced a liberalisation of foreign exchange policy (FEP) for multilateral development banks (MDBs) and qualified non-resident development financial institutions (DFIs), aiming to facilitate their investments in key growth areas in Malaysia. 

BNM said in a statement today that this includes the electrical and electronics (E&E) industry, technology adoption, sustainability and data centres.

“The MDBs and qualified non-resident DFIs will now be able to issue ringgit-denominated debt securities for use in Malaysia and provide ringgit financing to resident entities.

“This will allow both financiers and businesses to structure financing in ringgit for domestic projects while reducing the risk of currency mismatch,” according to the statement. 

BNM governor Datuk Seri Abdul Rasheed Ghaffour said the liberalisation would better facilitate greater participation from global investors in key growth areas in Malaysia.

“This is in line with greater demand and interest by international financial institutions to finance high-value investment projects in Malaysia that we have observed in the recent period,” he said.

The MDBs and qualified non-resident DFIs can share their technical expertise, particularly in blended finance, that would complement existing domestic players in meeting financing demand to support strategic investments and climate transition efforts in Malaysia.

By fostering a more facilitative investment environment, the liberalisation initiative can also increase issuances and participation from issuers and international investors, which would benefit the domestic bond and sukuk market in terms of greater depth and vibrancy.

For more information, please visit www.bnm.gov.my/fep 

Meanwhile, BNM said the pilot Qualified Resident Investor (QRI) programme will be further expanded to accept applications from eligible resident corporates who have direct investment abroad assets of RM500 million and above (previously RM1 billion), with the registration deadline extended until June 30, 2025.

“This is in light of the positive feedback received on the programme.

“Additional information about this programme such as the eligibility criteria, application form and other operational information can be found on BNM’s website,” BNM said. 

-- BERNAMA