During the financial crisis period of September 1997 to August 1998, many Malaysian multinationals suffered badly as a result of currency fluctuations. Thus foreign exchange risk management has become an important theme in the emerging markets such as those in Malaysia. This paper examines the extent of foreign exchange risk management among Malaysian multinationals and investigates the purpose of managing those risks, the types of risks managed and the extent of management control and documentation of the foreign exchange risk management. This is complimented by a mail survey, which was sent to corporate treasurers or finance directors of 90 Malaysian multinationals listed under the Bursa Malaysia Main Board (previously known as Kuala Lumpur Stock Exchange). The study indicates that multinationals are involved in foreign exchange risk management primarily because they sought to minimise operational overall cash flows, which are affected by currency volatility. Another finding is that the majority of multinationals centralised their risk management activities and at the same time imposed greater control by frequent reporting on derivative activities. It is likely that huge financial losses related to derivative trading in the past led to top management being extra cautious. Interesting findings also emerged from the examination of the role of foreign exchange risk management. It appears that economic events related to Malaysian financial markets did influence the involvement in foreign exchange risk management.