Malaysia

Liberalisation of foreign exchange administration rules to facilitate issuance of ringgit bonds in Malaysia by multilaterals

Christopher Lee (christopher.lee@wongpartners.com) and Chan Chung Leng (chung.leng.chan@wongpartners.com), Wong & Partners,* Kuala Lumpur, Malaysia. *Member law firm of Baker & McKenzie International.

On 1 April 2004, Bank Negara Malaysia (BNM) announced the liberalisation of the foreign exchange administration rules to facilitate the issue of ringgit denominated bonds by Multilateral Development Banks (MDBs) or Multilateral Financial Institutions (MFIs) in the Malaysian capital market.These measures were taken to enhance the development of the Malaysian bond market. Examples of MDBs and MFIs are the World Bank Group, the International Monetary Fund, the Asian Development Bank and the Organisation of American States.