Frequently Asked Questions (FAQs)
Bill of Guarantee No. 4 : To give the freedom to source capital globally for MSC Malaysia infrastructure, and the right to borrow funds globally
1. What is the benefit of having this incentive?
An MSC Malaysia Status Company is given general exemptions by the Controller of Foreign Exchange (the Central Bank of Malaysia) from the exchange control requirements. With these exemptions, an MSC Malaysia Status Company can engage in the transactions without having prior approval from the Central Bank of Malaysia (“BNM”). However, during the transaction process, the MSC Malaysia Status Company must still adhere to current procedures practiced by the financial institutions.
On the contrary, non MSC Malaysia Status Companies must get BNM’s approval before any transaction can be initiated.
2. How do I apply to enjoy this incentive?
An MSC Malaysia Status Company does not have to deal directly with BNM to obtain the exemption. MDeC continuously updates BNM with a list of newly approved MSC Malaysia Status Companies. BNM will then issue an exemption letter called the General Permission letter for each company stating the effective date of the exemption and conditions applied. All letters from BNM will be forwarded directly to the MSC Malaysia Status Companies.
3. What do I do after obtaining the General Permission Letter?
Upon receiving the General Permission Letter, MSC Malaysia Status Companies are required to reply to BNM through an undertaking letter which is attached together with the General Permission Letter. An undertaking letter is response letter which states that the exemptions given will only be utilized by the MSC Malaysia Status company as stated in the General Permission Letter.