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.