Is it possible using Foreign Money for Financing in Malaysia.
Company registration and accounting must be in MYR
- When registering a company with SSM or keeping accounts in Malaysia, all records must be in Malaysian Ringgit (MYR).
Foreign currency must be converted
- Foreign investors can remit foreign currency, but it must be converted to MYR based on the prevailing exchange rate.
Investment amount must meet the target
- The converted amount cannot be less than the committed investment. For example, if the investment is RM500,000, the foreign currency remitted must convert to at least RM500,000.
Even foreign currency accounts require conversion
- Even if the company has a foreign currency account, any foreign currency remitted must still be converted to MYR to ensure the investment amount meets the requirement.
Communicate exchange rate risks in advance
- To avoid under-investment due to exchange rate fluctuations, foreign investors must be informed beforehand that the investment amount is calculated in MYR.