KL may ease forex control

KL may ease forex control

KUALA LUMPUR (AP): The Malaysian government may announce an
easing of some of the strict controls it imposed on foreign
investors last year in response to the Asian economic crisis, a
news report said Sunday.

The announcement is expected to come soon after Prime Minister
Mahathir Mohamad and other government officials meet Monday with
40 top international fund managers and potential investors, the
Sun newspaper reported.

The report said Malaysia may relax curbs that had halted the
flow of capital overseas by barring foreigners from repatriating
money earned in Malaysian stock and bond markets for one year
from the purchase date.

"The imminent relaxation of controls over the management of
these funds is expected to take the form of an exit tax," which
would require foreigners to pay a small penalty on sums taken
overseas after less than 12 months, the article said.