KUALA LUMPUR (Oct 19): A government backbencher has called for the required time period for Malaysian exporters to repatriate their export proceeds back to Malaysia to be shortened to three months, in view of the ringgit’s weakness, having now fallen to the level last seen in the Asian Financial Crisis.

“I am putting forward this proposal because many government-linked companies (GLCs) and government-linked investment companies (GLICs) are keeping their money abroad right now, which does not help our country,” Rodziah Ismail (PH-Ampang) said in the Dewan Rakyat on Thursday during the debate session on Budget 2024.

Under Bank Negara Malaysia’s (BNM) current foreign exchange policy, exporters are required to repatriate export proceeds to Malaysia in full within six months from the date of shipment.

The ringgit fell to a 25-year low of 4.7680 against the US dollar on Thursday, the weakest since 1998.

Among Asian currencies, the ringgit is the second worst performer this year with a 7.64% decline, only ahead of the Japanese yen.

Other measures Rodziah proposed towards addressing the weak ringgit included inking more ringgit- or local currency-based agreements for business transactions.

She noted that Malaysia already has local currency bilateral agreements with China, Indonesia and Thailand.

“We should extend this [practice] further around the world, starting with Asean and Asia,” she added.

Further, she called on the government to ensure Malaysia’s political, socioeconomic, monetary and domestic financial stability for the country to attract foreign investment.

“I also propose to restore Malaysia’s position as a preferred tourism destination among long-staying and high-spending tourists,” she added.

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