Malaysian exporters and Bank Negara's export proceeds rules
Malaysia's foreign exchange policy requires resident exporters to bring export proceeds home within six months of shipment. Rules on converting part of them into ringgit have changed over the years. Exporters can hold the rest in foreign currency accounts onshore.
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A Johor furniture exporter ships $380,000 of dining sets to a retailer in Texas. Under Bank Negara Malaysia's Foreign Exchange Policy, the proceeds must come back to Malaysia in full within six months of shipment. When they arrive, the exporter's bank checks the current conversion rules and credits the rest to its trade foreign currency account.
Repatriation
Bank Negara Malaysia's Foreign Exchange Policy (FEP) notices require resident exporters of goods to repatriate export proceeds in full within six months of the shipment date. Extensions need approval. Proceeds are received through onshore licensed banks.
Conversion
Malaysia has at times required exporters to convert part of their proceeds into ringgit, and has adjusted and relaxed those requirements. Ask your bank which rule applies to proceeds you receive now, and read the current FEP notices.
Holding foreign currency
Exporters can keep foreign currency in trade foreign currency accounts with onshore banks and use it for imports, foreign currency loans and other permitted payments. Converting a planned amount ahead of payroll gives control over the rate.
Records
Banks match proceeds against export declarations. Keep customs records, invoices and payment proof per shipment.
Paying into Malaysia: the local rail
| What | Detail |
|---|---|
| Local rail | DuitNow transfers over RPP |
| Run by | Payments Network Malaysia (PayNet) |
| Settlement | Seconds, 24/7 |
Source: PayNet: DuitNow. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
Rivet opens business accounts for registered companies after verification. Malaysia-registered exporters must repatriate proceeds under Bank Negara's FEP, so check with your bank before receiving funds abroad. Where available, partners abroad who bank with Rivet can pay Malaysian bank accounts through Rivet's payouts. Rivet is not a bank; regulated partner institutions hold the funds.
Questions people ask
How long do Malaysian exporters have to repatriate proceeds?
Six months from the date of shipment, under the Foreign Exchange Policy notices, unless an extension is approved.
Must exporters convert proceeds into ringgit?
Requirements have changed over time. Check Bank Negara's current FEP notices for the conversion rules that apply to your proceeds.
Can exporters hold foreign currency?
Yes, in trade foreign currency accounts with onshore licensed banks, and use it for permitted payments.
Can a Malaysian company keep proceeds abroad?
Generally not beyond what the FEP allows. Proceeds are expected to be repatriated to Malaysia.
Sources
Rashidatou writes Rivet's guides to how money moves between countries: the payment rails, what each one costs, and the account details a company needs to get paid in another currency. Every figure in Rashidatou's articles is traced to the scheme rulebook, the regulator or the provider's published price list, and those sources are listed at the end.
More from Rashidatou K. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- malaysia
- exporters
- bank negara
- fep
- export proceeds
- myr
