The government needs to review the minimum limit in the foreign exchange policy for exporters as one of the measures to strengthen the value of the ringgit, which is currently low against the US dollar.
Senior fellow of the Malay Chamber of Commerce Malaysia, Azlan Awang, said that looking at the value of the country’s exports which exceed RM100 billion every month, this is a large amount that should give an advantage to the demand for ringgit.
He explained that with the country’s annual exports exceeding RM1.5 trillion, returns or receipts from exports including services, if used, can affect the value of the ringgit and the national economy.
“If this situation continues, soon people (traders) will not need ringgit, they will only reserve a certain amount to pay workers’ salaries. Even vendors (downline) in the export cycle (supply chain) will have foreign currency accounts.
“This situation will create the lack of demand for ringgit,” Azlan, who is a panellist at the National Economic Forum 2024 here today, told reporters.
In 2016, exporters have to convert 75 per cent of the revenue generated into ringgit. However, Bank Negara Malaysia announced the liberalisation of the Foreign Exchange Policy in 2021 which gives more flexibility to businesses.
Source: bernama.com
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