Balance of Payments (BOP) measures the international economic transactions between Malaysia and the rest of the world.
There are 3 accounts in the BOP which are Current, Capital and Financial Account. The compilation will be done based on the components under each account.
Understanding the concept of residence is a must before measuring the BOP. Resident can be divided into enterprises and households & individuals. These parties should have predominant economic interest and reside in Malaysia for a period of 1 year or more to be considered as resident.