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