Repatriate export proceeds into ringgit, SMEs told
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PETALING JAYA: Small and medium enterprises (SMEs) are encouraged to repatriate and convert export earnings into ringgit to bolster the ringgit, said the Small and Medium Enterprises Association of Malaysia (Samenta).
In a statement the SME group said this follows Bank Negara Malaysia’s call for businesses to do so as part of a ‘whole-of-nation’ approach to ensure the stability of the ringgit.
Samenta president William Ng said government-linked companies (GLCs) and government-linked investment companies (GLICs) have already begun doing so and have shown some early results.
“As such, it is the right time for SMEs to consider repatriating their foreign currency holdings in support of the ringgit, which will, in turn, help reduce the fluctuation and allow businesses to better plan their costs and expansion,” he said.
Meanwhile, Ng said Samenta reiterates the call for Malaysians to buy locally-made products and services first.
He said this is on top of last year’s call for the rapid introduction of a low-value goods tax to level the playing ground for local sellers and stem the outflow of the ringgit.
“If Malaysian consumers and SMEs want to see a rapid recovery of the ringgit, the fastest way to contribute is to buy local products and services.
“This will also help support the economy in the longer term, ease the inflationary pressures, and allow local companies to scale up and enhance their capability,” he added.
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