□ Except for payments of imports of goods and services, residents are allowed to limit their payments to foreigners up to RM10,000 - last time RM100,000;
□ Investment overseas for non-trade purposes require approval;
□ Payment for exports in foreign currency only;
□ Domestic credit facilities for non-resident correspondent banks and non-resident stock-broking firms are no longer allowed (previously, credit facility up to 5 million ringgit was allowed);
□ Residents not allowed to obtain ringgit credit facilities from non- residents; and
□ Transfer between external accounts require prior approval; transfers from external accounts to residents' accounts require approval.
Why Malaysia instituted control：
Some of the objectives for selective currency controls in Malaysia are aimed at achieving the following：
□ Financial predictability and stability;
□ Manage currency traders by minimising speculative trading; and
□ Return of ringgit to Malaysia.
Analysis of the measures
This analysis is tentative. The analysis is based on information available to the public as of November 1998.
By the end of November 1997 - i.e. two months after the control was instituted - the Central Bank of Malaysia has reported that the "worst in the financial sector of Malaysia is over." But it is too early to say whether the positive figures in the last two months could sustain over the next few months.
