Malaysia purpose of payment guide
Sending a wire to Malaysia requires you to provide certain information, including the recipient's bank details and the purpose of payment code. The purpose of payment code is a five-digit code that indicates the reason for the transaction, such as trade in goods or services, investment, or personal remittance.
When choosing a purpose of payment code, make sure that it is accurate and appropriate for the transaction. Incorrect or inappropriate codes could result in delays or even rejection.
Purpose of payment code
Purpose codes are used to indicate the nature of the transaction being conducted and should be included in the payment details when initiating a wire transfer to or from Malaysia. The purpose code should be selected based on the nature of the transaction and should be consistent with the supporting documentation, such as invoices or contracts.
Code | Description |
---|---|
GOODS | |
For movable goods that change ownership, excluding financial leases. If the goods transactions have been included in the monthly Inter company Account Report (IA Report) submitted to BNM, report as “17010” (Inter-company settlement for offsetting payables against receivables) | |
0 | Food And live animals |
1000 | Beverages and tobacco |
2000 | Crude materials, inedible, except fuels |
3000 | Mineral fuels, lubricants, and related materials |
4000 | Animal and vegetable oils, fat and waxes |
5000 | Chemicals and related products, not classified elsewhere |
6000 | Manufactured goods |
7000 | Machinery, non-customised packaged software and transport equipment |
7100 | Power lines, pipelines and undersea communication cables |
8000 | Miscellaneous manufactured articles |
9000 | Commodities and transactions not classified elsewhere |
9100 | Refunds relating to goods transactions |
9700 | Non-monetary gold |
16711 | Merchanting trade In Malaysia |
16712 | Merchanting trade abroad |
SERVICES | |
Manufacturing services Covers charges for specific services including related to the primary product | |
10010 | Goods for processing (manufacturing services) |
Repair and maintenance services | |
12500 | Repair and maintenance of aircraft, ships and other transport equipment |
TRANSPORTATION SERVICES | |
Freight on goods Covers payment for transportation of goods, including the loading on board and unloading of goods from carriers if contracts between the owner of goods and carriers required the service. | |
11110 | Freight by air |
11120 | Freight by sea |
11130 | Freight by other modes of transportation |
Passenger fare Covers payment for international carriage of passengers and also other incidental expenses. | |
11210 | Passenger fare by air |
11220 | Passenger fare by sea |
11230 | Passenger fare by other modes of transportation |
Airport and port services Covers payment for services related to stevedoring and haulage, storage and warehousing charges, harbor dues and fees, anchorage and berthing facilities, tug boat service, pilotage, and towage and airport landing facilities. | |
12110 | Airport services |
12120 | Port services |
12130 | Other terminal facilities |
12110 | Airport services |
TRAVEL SERVICES (EXCLUDE PASSENGER FARES) | |
Personal travel Covers purchases and sales of travelers’ checks, foreign currencies, bank drafts, and telegraphic transfers for goods and services acquired for use by travelers during their visits to host countries. This is only for expenses incurred overseas while traveling. | |
13110 | Goods and services purchase by travellers |
13300 | Travel for pilgrimage and religious observances |
13400 | Travel for medical treatment |
13500 | Education-related |
Business and official travel Covers purchases and sales of travelers’ checks, foreign currencies, bank drafts, and telegraphic transfers for goods and services acquired for use by travelers during their visits to host countries. this is only for expenses incurred overseas while traveling. | |
13210 | Goods and services purchase through business and official travel |
13220 | Goods and services purchase by short term workers and construction services |
16210 | Construction and installation services in Malaysia |
16220 | Construction and installation services abroad |
INSURANCE/TAKAFUL AND PENSION SERVICES | |
Covers charges for premiums and settlement of claims for services relating to freight insurance/takaful, direct insurance/takaful (life and non-life), and reinsurance/retakaful | |
16311 | Premium paid/received on high risk insurance/takaful relating to fire, marine, aviation, etc. |
16312 | Premiums paid/received on other general insurance/takaful |
16313 | Premium paid/received on life insurance/takaful |
16314 | Premiums paid/received on reinsurance/retakaful |
16315 | Premium paid/received on insurance/takaful on goods |
16321 | Claims settlements on high risk insurance/takaful relating to fire, marine, aviation, etc. |
16322 | Claims settlements on other general insurance/takaful |
16323 | Claims settlements on life insurance/takaful |
16324 | Claims paid/received on reinsurance/retakaful |
16325 | Claims paid/received on insurance/takaful on goods |
16332 | Auxiliary insurance services |
FINANCIAL SERVICES | |
16410 | Explicitly-charged financial services |
16420 | Explicit margins on buying and selling of financial instruments |
16430 | Explicitly-charged asset management services |
16440 | Financial intermediation service charges indirectly measured (fisim) |
CHARGES ASSOCIATED WITH INTELLECTUAL PROPERTY RIGHTS (ROYALTY, PATENTS, COPYRIGHTS) | |
16610 | Charges associated with intellectual property rights |
16620 | License fees to reproduce and distribute intellectual property |
TELECOMMUNICATIONS, COMPUTER, AND INFORMATION SERVICES | |
16100 | Telecommunication services |
16510 | Computer services |
16520 | Information services |
OTHER BUSINESS SERVICES | |
Operational lease Covers payments to/receipts from non-resident for operational leases and charters of ships and vessels, aircraft, and other transportation equipment such as railway cars, containers, rigs and etc. without crew. | |
12310 | Rentals/operating leasing of aircraft (without crews) |
12320 | Rentals/operating leasing of ships and vessels (without crews) |
12330 | Rentals/operating leasing of other transport equipment (without crews) |
16780 | Rentals/operating leasing of dwellings, other buildings, and machinery |
16720 | Sharing of administrative expenses |
16730 | Research and development services |
Technical, trade-related, and other business services | |
16740 | Architectural, engineering, and other technical services |
16750 | Agricultural, mining, and on-site processing |
16791 | Trade-related services |
16792 | Waste treatment services |
16793 | Other business services |
Professional and management consulting services | |
16760 and 16771 | Advertising, market research, and public opinion polling services |
Legal services Please note that the beneficiary of the legal services fees should be a legal firm. Cover charges for legal services (legal advice, judicial and statutory procedures, etc.). This fee should exclude property price (should be reported under purpose code 39110 or 39120) or court settlement (should be reported under purpose code 21230). Kindly check and confirm: 1. Purpose code 2. Country code 3. Specify type of legal service | |
16772 | Accounting services |
16773 | Management consulting services |
Personal, cultural, and recreational services | |
16810 | Audio-visual and artistic related services |
16820 | Health services |
16830 | Education services |
16840 | Heritage and recreational services |
16850 | Other personal services |
16900 | Other services transactions nie |
16910 | Refunds relating to services transactions |
GOVERNMENT TRANSACTIONS NOT INCLUDED ELSEWHERE | |
Covers payment to/receipts from non-residents on account of government-related transactions not included elsewhere | |
15100 | Malaysian government offices abroad and foreign offices in Malaysia |
15200 | International organisations |
15300 | Trade missions |
15400 | Commission & other charges relating to loan obligations of the Malaysian government |
15500 | Bnm minting of coins and printing of notes |
INVESTMENT INCOME | |
14110 | Direct investment income |
14120 | Portfolio investment income |
14140 | Investment income attributable to non-resident policyholders in insurance, pension schemes and standardised guarantees |
INTEREST INCOME | |
14210 | Interest paid to/received from related non-resident company relating to loan obligations, including non-participating preference shares and financial leases |
14220 | Interest paid to/received from non-related non-resident company relating to loan obligations, including non-participating preference shares and financial leases |
14230 | Interest paid to/received from non-residents on deposit and Negotiable Instruments Of Deposits (Nids) |
14240 | Interest paid to/received from non-residents on investment in bonds and notes |
14250 | Interest paid to/received from non-residents on money market instruments |
14260 | Interest paid to/received from non-residents on cash pooling arrangement |
COMPENSATION OF EMPLOYEES | |
14310 | Wages and salaries in cash |
14320 | Wages and salaries in kind/benefits attributable to employees |
14330 | Employer's social contributions |
OTHER PRIMARY INCOME | |
14410 | Taxes on products and productions |
14420 | Subsidies on products and productions |
14430 | Rental on natural resources |
SPECIAL TRANSACTIONS | |
17010 | Inter-company settlement for offsetting payables against receivables |
17020 | Transfer by a company to/from its own current account overseas |
17070 | Transfer by a resident (exclude bank) to/from current account overseas of another resident company |
SECONDARY INCOME | |
Government sector (Covers Malaysian government's receipt from/payment to non-resident) | |
21110 | Grants, aid, donations, and unclaimed monies |
21120 | Pension, gratuity |
21131 | Taxes on income, wealth and other taxable assets (government sector) |
21132 | Fines and penalties (government sector) |
21133 | Social contributions and benefits (government sector) |
21140 | Compensation and pledging |
Private sector Financial corporations, non-financial corporations, households, and npishs; education/training services in Indonesia | |
21210 | Grants and gifts |
21220 | Workers' remittances |
21230 | Legacies, compensations, and prizes |
21241 | Taxes on income, wealth and other taxable assets (private sector) |
21242 | Fines and penalties (private sector) |
21245 | Net premiums on non-life insurance and standardised guarantees |
21246 | Non-life insurance claims and calls under standardised guarantees |
CAPITAL ACCOUNT | |
Government sector (Covers Malaysian government's receipt from/payment to non-resident) | |
22130 | Other capital transfers (government sector) |
Private sector (Financial corporations, nonfinancial corporations, households and npishs) | |
22220 | Migrant transfer |
22230 | Other capital transfers (private sector) |
23000 | Acquisition/disposal of non produced, non-financial assets |
Direct investment | |
Equity capital | |
35130 | Mergers and acquisitions |
35140 | Equity investment other than mergers and acquisitions |
35200 | Liquidation of investment |
35300 | Head office accounts in branches |
35400 | Capital expenditure in special enterprises/projects |
Credit facilities | |
Credit facilities (long term loans) Original tenure exceeds one year | |
31111 | Extension/receipt (drawdown) of long term loan to/from non resident |
31112 | Repayment of principal to/by non-resident on long-term term loan |
31113 | Prepayment of principal to/by non-resident on long-term term loan |
Credit facilities (short term loans) | |
31121 | Extension/receipt (drawdown) of short term loan to/from non-resident |
31122 | Repayment of principal to/by non-resident on short-term term loan |
31123 | Prepayment of principal to/by non-resident on short-term term loan |
Non-participating Redeeemable/non-reedemable preference shares. Please confirm if recipient co is non-related company. If otherwise, report under direct investment. | |
31311 | Issuance |
31312 | Redemption |
Financial lease The lessee is deemed to be owner of the asset being financed, and assumed the rights, risk, rewards and responsibilities of ownership. | |
31411 | Financial lease extension to/receipt from non-residents |
31412 | Repayment of financial lease to/receipt from non-residents |
31413 | Prepayment of financial lease to/receipt from non-residents |
Revolving credit / overdraft facilities Short-term facilities | |
31511 | Credit facilities extension To/receipt from non-resident |
31512 | Repayment of credit facilities to/by non-resident |
31513 | Prepayment of credit facilities to/by non-resident |
Other long term loan facilities Original tenure exceeds one year | |
31911 | Extension to/receipt from non-resident |
31912 | Repayment of other loans facilities to/by non-resident |
31913 | Prepayment of other loans facilities to/by non-resident |
Other short term loan facilities Original tenure is one year or less | |
31921 | Extension to/receipt from non-resident |
31922 | Repayment of other loans Facilities to/by non-resident |
31923 | Prepayment of other loans facilities to/by non-resident |
33000 | Employee stock options |
Long term cash pooling Original tenure exceeds one year | |
31611 | Extension to/receipt of cash pooling from non-resident |
31612 | Repayment of cash pooling to/by non-resident |
31613 | Prepayment of cash pooling to/by non-resident |
Short term cash pooling Original tenure exceeds one year | |
31621 | Extension to/receipt of cash pooling from non-resident |
31622 | Repayment of cash pooling to/by non-resident |
31623 | Prepayment of cash pooling to/by non-resident |
Real estates | |
Purchase/sales of real estate in Malaysia | |
39111 | Purchase/sale of real estate in Malaysia (commercial) |
39112 | Purchase/sale of real estate in Malaysia (residential) |
| Purchase/sales of real estate abroad |
39121 | Purchase/sale of real estate abroad (commercial) |
39122 | Purchase/sale of real estate abroad (residential) |
EQUITY SECURITIES | |
Corporate stocks and shares Purchase/sale of listed and unlisted equity sahres, unit trusts units, transferable subscription right (Tsr) and any rights issue or option in respect of such rights. also include participating preference shares. | |
36110 | Issued by residents in domestic capital market |
36120 | Issued by residents in international markets |
36130 | Issued by non-residents in international markets |
36140 | Issued by non-residents in domestic capital market |
DEBT SECURITIES | |
Bonds and notes Purchase/sale of private debt securities, bonds, debentures, notes and any similar debt instruments with original tenure of more than one year | |
36210 | Issued by residents in domestic capital market |
36220 | Issued by residents in international markets |
36230 | Issued by non-residents in international markets |
36240 | Issued by non-residents in domestic capital market |
Money market instruments Purchase/sale of money market or negotiable instruments with original more than one month and up to one year. Includes treasury bills, commercial and finance papers, banker's acceptances and negotiable instruments of deposits. | |
36310 | Issued by residents in domestic capital market |
36320 | Issued by residents in international markets |
36330 | Issued by non-residents In international markets |
36340 | Issued by non-residents In domestic capital market |
Government securities Debt securities issued by governments and government-related agencies with original tenure of more than one year. | |
36410 | Purchase/sale of Malaysian government securities |
36420 | Purchase/sale of foreign government securities |
FINANCIAL DERIVATIVES | |
37100 | Swaps |
37200 | Forwards |
37300 | Futures |
37400 | Options |
37900 | Other derivatives |
OTHER INVESTMENT | |
Deposit | |
39210 | Placement/withdrawal of deposits of residents with/from financial institutions abroad |
39220 | Placement/withdrawal of deposits of residents with/from offshore financial institutions in Labuan |
34000 | Subscriptions/contributions to/reimbursement from international organizations |
Own account transfer | |
72511 | Foreign currency transactions to own account Hheld within JP Morgan Malaysia |
72512 | Foreign currency transactions to own account held with other financial institutions in Malaysia |