Investing Overseas from Malaysia: What to Know About Cross-Border Assets and Estate Planning

By Joshua Teoh S.Y. (张津瑞), FAR, IFAR, CMSRL, ShRFP, RFP, MBA · Published 2026-10-19

Short answer: Malaysian residents have a lot of freedom to invest abroad, but every overseas asset adds three questions: Is the investment allowed and suitable? How is it taxed? and How will my family get it back if something happens to me? The third question is the one most often left unanswered.

1. The foreign exchange rules

Bank Negara Malaysia's Foreign Exchange Policy (Notice 3) sets the limits for residents investing in foreign currency assets:

• A resident individual without domestic ringgit borrowing may invest in foreign currency assets up to any amount.
• A resident individual with domestic ringgit borrowing may invest up to RM1 million equivalent per calendar year using funds converted from ringgit (together with Trade FCA funds and certain asset swaps). Foreign currency already sourced from abroad, and real estate abroad for the purpose of education, employment or migration, are treated separately.
• According to BNM's FAQ, "domestic ringgit borrowing" for this purpose excludes one housing loan and one vehicle loan.

Rules change from time to time, so check the current notice before moving significant sums.

2. Tax on foreign income

Under the Income Tax (Exemption) (No. 5) Order 2022, foreign-sourced income received in Malaysia by a resident individual (other than income from a partnership business in Malaysia) is exempt from Malaysian income tax, provided the income has been subject to tax in the country of origin. The exemption was extended to 31 December 2036 by P.U.(A) 451/2024. You still need to declare the income and keep evidence of the foreign tax paid.

Malaysia has had no estate duty since it was repealed with effect from 1 November 1991. However, other countries may tax assets located there when the owner dies, even if the owner never lived there. That is where estate planning comes in.

3. Investment risks that are easy to underestimate

• Currency risk: a good return in US dollars can shrink, or grow, once converted back to ringgit.
• Concentration risk: owning one foreign property or one market can be riskier than it feels.
• Liquidity: property and private investments abroad can take a long time to sell.
• Regulatory protection: an overseas platform or product may not be regulated in Malaysia, so Malaysian complaint channels may not help. Check who regulates the provider, and check the SC Investor Alert List and BNM Financial Consumer Alert List before investing. See How to check if a financial adviser is licensed.

4. The estate planning gap

When someone dies with assets in several countries, the family may need to deal with several legal systems at once:

• Recognition of the Malaysian will or grant: some countries can recognise a Malaysian grant of probate through a resealing process; others require fresh court proceedings, local lawyers and certified translations.
• Local death taxes: some countries tax assets situated there on the owner's death.
• Frozen accounts and lost assets: if nobody in the family knows an overseas account or platform exists, it may never be claimed.
• Different rules for different assets: property follows the law of the country where it is located; nominations and joint holdings may pass outside the will.

This is what I mean by restructuring cross-border assets: reviewing what you hold, where, and in whose name, so the arrangement is still sensible for you and manageable for your family. It is not about moving money for the sake of it.

5. Example: holding US shares directly

Many Malaysians buy US-listed shares through online brokers. The US Internal Revenue Service treats shares in US corporations as US-situated assets for estate tax purposes, regardless of where the share certificates or brokerage account are held. For a person who was neither a US citizen nor domiciled in the US, the executor must file a US estate tax return (Form 706-NA) if the US-situated assets exceed the US$60,000 filing threshold.

This does not mean US shares are unsuitable. It means the structure of the holding matters, and the family must know what to do. Speak to a qualified tax adviser about your own position.

6. A practical checklist

1. List every overseas asset: country, platform or institution, account number, and whose name it is in.
2. Confirm the investment is suitable for your goals, time horizon and risk tolerance, and that the provider is properly regulated.
3. Check the foreign exchange limits that apply to you, especially if you have ringgit borrowings.
4. Keep records of foreign tax paid on income you bring back to Malaysia.
5. Find out whether each country taxes, or requires separate legal steps for, assets left by a non-resident.
6. Make sure your will, any trust and your nominations work together, and that your executor can find everything.
7. Review the arrangement at least every two to three years, or after a major life event or a move abroad.

Sources

1. Bank Negara Malaysia, Investing in Foreign Currency Assets: bnm.gov.my/-/fep/res-rule2.
2. Bank Negara Malaysia, Foreign Exchange Policy Notice 3 (Investment in Foreign Currency Asset): bnm.gov.my; FAQs: bnm.gov.my.
3. Inland Revenue Board of Malaysia, Guidelines on Tax Treatment in Relation to Income Received from Abroad (Amendment), June 2024: hasil.gov.my.
4. Deloitte Malaysia, Tax Espresso (January 2025), on P.U.(A) 451/2024 extending the exemption to 31 December 2036: deloitte.com.
5. Finance Act 1992 (repeal of estate duty with effect from 1 November 1991): commonlii.org.
6. US Internal Revenue Service, FAQs on estate taxes for nonresidents not citizens of the United States: irs.gov; Instructions for Form 706-NA: irs.gov.
7. Securities Commission Malaysia, Investor Alert List: sc.com.my; Bank Negara Malaysia, Financial Consumer Alert List: bnm.gov.my.

This article is general information only and is not legal, tax, Shariah or financial advice. Laws and figures are stated as understood at the date of publication. Please seek advice for your own circumstances.