1. For the purpose of this ECM Notice, credit facilitiesÓ when extended to non-residentsincludes personal housing and vehicle credit facilities.
2. An authorised dealer may lend in foreign currency to non-residents for anypurpose, provided credit facilities to finance the acquisition or development ofimmovable property in Malaysia comply with the provisions in paragraphs 4.3.1 and4.3.2.
3. The Controller hereby gives permission to a resident to issue guarantees onbehalf of a non-resident for any purpose.
4. The Controller hereby also gives permission, subject to the conditions in paragraphs6 and 7, to -
4.1 A banking institution to extend credit facilities in Ringgit to a non-residentstockbroking company or a non-resident correspondent bank which maintains an ExternalAccount, provided-
4.1.1 The total credit facilities of the non-resident stockbroking company or non-residentcorrespondent bank from all banking institutions does not exceed the aggregate ofRM5 million; and
4.1.2 The credit facilities are used by -
4.1.2.1 The non-resident stockbroking company to finance funding gaps if thereis a delay in receipt of funds from its non-resident clients for the payment of securitiespurchased on the Kuala Lumpur Stock Exchange (hereinafter referred to as KLSE.
4.1.2.2 The non-resident correspondent bank to finance unforeseen or inadvertentfunding gaps arising from the mismatching of receipts and payments through the ExternalAccount.
4.2 A banking institution to extend credit facilities in Ringgit to a non-resident(otherthan a stockbroking company and correspondent bank) which maintains an External Account,provided -
4.2.1 The total credit facilities of the non-resident from all banking institutionsdoes not exceed the aggregate of RM200,000; and
4.2.2 The credit facilities are to finance purposes other than the acquisitionor development of immovable property in Malaysia.
4.3 A resident, including a banking institution, to extend credit facilities inRinggit -
4.3.1 Of any amount to a Malaysian citizen who has obtained permanent residentstatus in another territory and is not residing in Malaysia, to finance the purchaseor construction of one residential property in Malaysia, provided the borrower doesnot individually or jointly own any other residential property in Malaysia.
4.3.2 To a non-resident, other than a non-resident mentioned in paragraph 4.3.1,to finance the purchase or construction of one residential property in Malaysia(excludingpurchase of land only), provided -
4.3.2.1 The non-resident has a valid work permit with at least one year durationbefore expiry as at the date of application;
4.3.2.2 The credit facility does not exceed 60% of the purchase price or constructioncost of the residential property;
4.3.2.3 The residential property is for the non-residentŐs own accommodation;and
4.3.2.4 The non-resident does not individually or jointly own any other residentialproperty in Malaysia.
4.4 A resident stockbroking company to extend margin financing to a non-residentfor the purchase of only securities listed on the KLSE, provided the resident stockbrokingcompany complies with all the rules imposed by the KLSE on the extension of marginfinancing.
4.5 A non-bank resident to lend in foreign currency to a non-resident, providedthe non-bank resident has no domestic credit facilities.
5. The prior permission of the Controller is required for a resident to extendany credit facility to a non-resident, other than permitted in paragraph 4.
6. A resident is required to ensure the provisions in paragraph 4 are met whenextending credit facilities to a non-resident.
7. The main office/head office of a participating financial institution is requiredto report credit facilities extended to non-residents in the Borrower Loan InformationSystem.