Malaysia arrests foreign fund

Malaysia arrests foreign fund

KUALA LUMPUR (AFP): Malaysia's central bank said Friday the foreign currency conversion of ringgit proceeds from the sale of Malaysian securities by non-residents would be allowed only after one year.

In the first clarification of new foreign exchange controls, Bank Negara Malaysia reiterated that the holding period for proceeds from the sale of shares acquired before September 1 would start from that date.

The one-year holding period for shares purchased on September 1 or later will start from the date of purchase.

Bank Negara bank said the one-year holding requirement for non-residents also applied to other ringgit assets such as derivatives, fixed deposits, fixed assets, bills of exchange, treasury bills and private debt securities.

"If ringgit assets are held for less than 12 months, proceeds from the sale must be credited to the external account," it said.

Proceeds from the disposal of ringgit assets held for more than 12 months can be converted into foreign currencies.

Short-term fixed deposits with maturity periods of less than a year, if rolled over up to a year, may be converted into foreign currencies, it said.