For external account balances held in the form of fixed deposits, funds in such external account cannot be converted into foreign currency if the deposits were placed for less than 12 months. The one-year requirement applies to holdings of Malaysian assets in any form. If RM assets are held for more than 12 months, then the proceeds from their disposal can be converted into foreign currency. Short-term fixed deposits with maturity periods of less than one year, if rolled over up to a year, may be converted into foreign currency. Effective date For securities purchased or deposits placed before 1 September 1998, the one-year holding period starts from 1 September 1998.
Transactions have to be effected through authorised depositories.
Rules on conversion into foreign currency apply. MSC Status Companies MSC status companies will continue to be exempted from all exchange control rules to meet their own requirements. Settlement for outstanding transactions entered into prior to 1300 hour on 1 September 1998. All settlement for forex transaction and contracts for the sales of securities executed prior to 1300 hours on 1 September 1998 will only be allowed to be effected until 9 September 1998. Authorised dealers must verify evidences before effecting settlement on behalf of their customers.