There is 20% withholding tax for interest paid to non-resident lenders. However, government may grant tax exemp-tion for any 'approved foreign loan' if.

* the loan is utilized for the purchase of productive equipment

* the credit facilities are obtained through financial agreement with the foreign lending company,

* the amount of loan is at least B$200,000.

Financing through domestic securities markets are also available. The issuance of corporate bonds should be approved by the Stock Market Supervising Board (BAPEPAM) on behalf of the Indonesian Government.

A Non-resident Controlled Company (NRCC) in Malaysia may borrow up to a total of RM10 million from all sources in Malaysia without the prior permission of the Controller of Foreign Exchange provided at least 60% of its credit facilities from banking institutions is from Malaysian-owned banking institutions. The limit for exchange control approval applies to all forms of credit, excluding trade financing facilities where the tenure of the credit is less than 12 months, guarantees, and foreign exchange lines.

For borrowing in Malaysia in excess of RM10 million, the permission of the Controller is required and such approval will be given based on the genuine needs of the NRCC, the credit situation in the country, and the amount of eligible capital funds of the NRCC.

Domestic borrowing for NRCCs should not be more than three times their eligible capital funds. NRCCs are encouraged not to resort to the maximum use of borrowed funds in Malaysia, while bringing in only nominal amounts of capital of their own for their projects in Malaysia. This is to ensure that an NRCC brings in a relatively significant amount of funds of its own to finance its project in Malaysia as a long-term proposition and not merely as a venture for quick profits without any semblance of permanence.

2. Borrowing in Foreign Currency.

Residents may borrow in foreign currency from banks in Malaysia and non-residents up to a total of RM5 million equivalent in aggregate without the permission of the Controller, to supplement their financial requirements for business and productive purposes in Malaysia. Commercial banks may effect remittances of loan repayments and interest on approved foreign borrowing to non-residents, provided such repayments and interest payments are in accordance with the terms approved for the borrowing.

* loans of private sector from FCDUs/offshore sources irrespective of maturity to be serviced using foreign exchange purchased from outside of the banking system.

* short-term (with maturity not exceeding one year) loans of financial institutions, both public and private, for normal interbank intersections.

* short-term loan of the private sector in the form of export advances from buyers abroad.

* short-term loans of the following private sector borrowers from FCDUs:

- community and service exporters, provided these loans are used to finance export-related import costs of goods and services as well as peso cost requirements

- producers manufacturers, including oil companies and public utility concerns, provided the loans are used to finance import costs of goods and services necessary in the production of goods by the borrower concerned

* short-term loans of private sector exporters/importers from participating creditor banks under the Revolving Trade Facility Agreement, provided that:

- the loans are not covered by a guarantee from a government financial institution/ corporation

- the loans shall be exclusively used to finance specific trade transactions in an amount equivalent to the import bills to be liquidated and/or in the case of export financing transactions, to the borrower's pre-export financing requirement

- the advice or notification on the loans to be obtained together with the pertinent documents cited have been submitted to the BSP at least 5 days prior to drawdown date;

- drawdown and registration requirements shall be complied with; and

- any assignment of the loan by the creditor concerned shall require prior BSP approval.

* Domestic Borrowings- domestic loans can be availed directly from financial institutions.

Non-residents may freely borrow either directly or through FX Swap transactions in local currency from commercial banks to finance their underlying activities. Without underlying activities, non-resident borrowing in local currency is limited to a maximum of Baht 50 million per person.

Private companies may provide lending to affiliated companies abroad of which they hold at least 25% share. Transfers abroad up to USD 10 million per year do not require approval from the Bank of Thailand.

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caused by the depreciation of the Rupiah is available.

Foreign investors can repatriate dividends and capital through the banking system at rates applicable on the date of remittance.

The present exchange control regime applies uniformly to all transactions with all countries except Israel, Serbia, Montenegro, against which special restrictive rules apply.

Payments to countries outside Malaysia may be made in any foreign currency other than the currencies of Israel, Serbia or Montenegro.

All payments in foreign currency to non-residents for the repatriation of capital, profits, dividends, interest, rental and commissions are freely permitted. Payments for imports of goods and services are also freely permitted but must be made in foreign currency. The commercial banks are authorised to effect such payments.

For investments abroad and payments under guarantee for non-trade purposes, prior approval of the Controller is required if the amount exceeds the equivalent of RM 10,000.

A simple form (KPW X) must be completed for all exports, the value of which exceeds RM100,000 F.O.B. per shipment. This form does not require any authorisation and is given to customs authorities at the time of shipment. However, exporters which declare their exports through Electronic Data Interchange (EDI) are exempted from completing the form with effect from 1.1.1997.

Export proceeds must be in foreign currency (other than the currencies of Israel, Serbia or Montenegro) and have to be repatria-ted to Malaysia within the period of payment specified in the export contract. The period should not exceed a maximum period of six months from the date of export.

Exporters are allowed to retain a portion of the proceeds in foreign currency provided these are deposited in foreign currency accounts with designated banks in Malaysia.

No permission is required from the Controller for a company in Malaysia to maintain inter-company accounts with associated companies, branches or other companies outside Malaysia, provided monthly returns as specified by the Controller are submitted to the Controller and the following are excluded from the inter-company accounts:

- proceeds from the export of goods from Malaysia; and

- proceeds from loans extended to the Malaysian companies.

With the prior written permission of the Controller, companies are allowed to offset the export proceeds through inter-company accounts against payables to their affiliated or parent companies overseas for the supply of raw materials, parts, components and other items. This would enable the companies concerned to repatriate to Malaysia only the value-added in the form of services performed by the Malaysian companies. Where the companies have been given permission for the above offsetting arrangements, they are required to observe certain procedures in reporting and lodging monthly returns to enable the Controller to monitor their inter-company accounts and to ensure that the value-added in their exports are repatriated to Malaysia in the prescribed manner.

There are no restrictions on the sources of funds, uses of funds and their conversion into foreign currency for external accounts held by non-resident individuals working in Malaysia. This includes accounts held by their spouses, children and parents residing in Malaysia.

MSC Status Companies will continue to be exempted from all exchange control rules to meet their own requirements.

currency account within 7 days from the date of receipt.

The State Bank of Vietnam assures to balance foreign currency requirements of Enterprises conducting business in the sector of construction of infras-tructure facilities or production of essential import substitutes and some important projects published by the Ministry of Planning and Invest-ment. The above-men-tioned assurance of sale of foreign currency shall be stably applied for the entire duration of the Enterprises.

Production Enterprises being obliged to export their products and other Enterprises other than the Enterprises as referred above shall be assisted by the State Bank of Vietnam for part of foreign currency requirements which are actually necessary and reasonable for the first three (3) years after the Enterprise commences its operation in accordance with the following priority order:

- Import of raw and other materials for production in the budgeted year;

- Import of spare parts for replacement;

- Repayment of interest on loans.

With respect to Enterprises engaging in services industries (such as tourism, hotel, office for lease, public transportation, school, health, culture and equipment for lease and so forth), the State Bank of Vietnam may consider permitting purchase of foreign currency in accordance with the applicable regulations on control of foreign exchange.

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offshore borrowings need not be reported to the Government as loan as there is no Government involvement.

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financial institutions, trade credit. Foreign investors may also use sources derived from their enterprises,

such as undistributed profits, funds borrowed from shareholders, and new issues of equity shares.

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