What is Domestic Ringgit Borrowing (DRB)?

Domestic Ringgit Borrowing (DRB) refers to a loan obtained in Ringgit by a Resident, which includes:

(a) any utilised or unutilised credit facility or financing facility;

(b) any utilised or unutilised trade financing facility, including but not limited to, trade guarantee or

guarantee for payment of goods;

(c) redeemable preference share or Islamic redeemable preference share; or

(d) Corporate Bond or Sukuk.

However, “borrowing” excludes the following items:

(i) A trade credit term provided by a supplier for any goods or services;

(ii) A forward contract with a licensed onshore bank, excluding those involving:

(A) the exchange or swap of Ringgit or foreign currency debt obligations for another foreign

currency debt obligation; or

(B) the exchange or swap of a foreign currency debt obligation for a Ringgit debt obligation;

(iii) A Financial guarantee or Non-Financial Guarantee;

(iv) An operational leasing facilities;

(v) A factoring facility without recourse;

(vi) A credit facility or financing facility obtained by a Resident Individual from another Resident to

purchase one (1) residential property and one (1) vehicle; or

(vii) A credit card or charge card facility obtained by a Resident Individual from a Resident and used for

payment for retail goods or services only.

When you has breached the prescribed DRB threshold, you will need to obtain approval from

BNM to perform investments in foreign currency assets.

You are encouraged to consult the complete and most up-to-date set of FEA Rules on BNM's website at https://bnm.my."