Zafru pointed out that the government would leave it to Bank Negara to decide whether or not to compel exporters to convert their export proceeds into Ringgit.

He said the decision made by Bank Negara is a form of capital control to control the spread between the Rnggit and foreign currencies, which had both advantages and disadvantages.

Exporters May Retain Up To 25% Of Export Proceeds

Export Proceeds

Bank Negara has a rule since December 2016 that exporters can only keep up to 25% of their export proceeds if they want to store it in foreign currency and the remaining 75% must be converted into Ringgit.

On the other hand, Zafrul called on local businesses, especially the Government-Linked Companies (GLC), to play a role and support the need for the Ringgit movement rather than putting all the blame on the government. 

He also said, we must have confidence in our own currency, especially Malaysian companies and GLCs engaged in exports.

Recent Posts