Bank Negara Malaysia (BNM) will fully implement the Qualified Resident Investor (QRI) Programme starting 1 July 2025.
This offers greater foreign exchange flexibility to eligible corporates planning to reinvest abroad.
Under the QRI framework, approved corporates may reconvert ringgit into foreign currency for direct investment abroad (DIA) without requiring prior approval from BNM.
To qualify, corporates must first register with BNM and convert eligible foreign currency funds such as dividends, interest income, or divestment proceeds into ringgit.
Only funds converted after successful onboarding are eligible for reconversion.
Existing balances in Investment Foreign Currency Accounts with licensed onshore banks may also qualify if converted after registration.
Applicants must demonstrate good corporate governance, comply with BNM’s foreign exchange policy, and have a proven track record in managing foreign exchange activities.
Registration can also be made on a group basis, allowing one entity within a parent-subsidiary structure to repatriate and convert funds while another reconverts them later.
The programme does not impose a minimum amount for repatriation and conversion.
Once onboarded, corporates can reconvert up to the total amount converted under the programme at any time, and there is no expiry period for reconversion.
Registration for the QRI Programme will remain open until 30 June 2028.
QRI corporates will still be eligible for the standard RM50 million annual limit for overseas investment in addition to the reconversion flexibility provided under the programme.
Certain transactions are not eligible, including FX swaps and the immediate use of forward contracts to reconvert funds.
While the currency used for reconversion may differ from the one originally converted, BNM recommends using the US dollar equivalent as a reference.
Onboarded corporates must submit periodic reports to BNM detailing their conversion and reconversion activities.
They must also provide supporting documents to their bank when reconverting funds, including the registered-QRI letter and a declaration confirming that the reconversion amount does not exceed the total previously converted.
Featured image: Wikipedia
