What is domestic ringgit borrowing (DRB)?

As a Malaysia resident, you have domestic ringgit borrowing (DRB) if you received ringgit borrowing or financing from another person, corporation, or financial institution in Malaysia through a credit facility, financing facility, trade guarantee or guarantee for payment of goods, redeemable preference share, Islamic redeemable preference share, private debt security, or Islamic private debt security other than:

(a) trade credit terms extended by a supplier for all types of goods or services;

(b) forward contract with a licensed onshore bank excluding a contract that involves –

(i) the exchanging or swapping of ringgit or foreign currency debt obligation with another foreign currency debt obligation; or

(ii) the exchanging or swapping of foreign currency debt obligation with a ringgit debt obligation;

(c) performance guarantee or financial guarantee;

(d) operational leasing facility;

(e) factoring facility without recourse;

(f) a credit facility or financing facility obtained by a resident individual from a resident to purchase one residential property and one vehicle; or

(g) credit card and charge card facility obtained by a resident individual from a resident;

Domestic Ringgit borrowing/financing excludes:

(a) a borrowing obtained by a resident entity from another resident entity within its group of entities with parent-subsidiary relationship; and

(b) any credit facility or financing facility (including corporate credit cards and corporate charge cards), and other facility obtained by a resident entity, which is used for sundry expenses and employees’ expenses only.  

For further information, please refer https://www.bnm.gov.my/fep