Matrade: Services sector not subject to Bank Negara’s new measures


  • Forex
  • Friday, 16 Dec 2016

Malaysia

KUALA LUMPUR: Companies exporting their products under the services sector are not subject to measures introduced by Bank Negara, says the Malaysia External Trade Development Corp (Matrade).

Chief executive officer Datuk Dzulkifli Mahmud said under the 11th Malaysia Plan, the government aims for the services sector to improve export revenue by more than 40% from the RM135bil recorded in 2015 to RM195bil.

“By excluding the sector from the central bank’s new measures, we can help spur the economy,” he added.

Construction, education, healthcare and tourism are those included under the services sector.

Dzulkifli said this after a half-day trade talk with some 500 companies, mainly small and medium enterprises.

The event was jointly organised by Matrade and Bank Negara.

The talk, themed, “What you should know about Bank Negara’s new forex measures”, was also aimed at helping local companies, particularly exporters, better understand Bank Negara’s measures to develop the foreign exchange market.

On Dec 5, Bank Negara announced new measures, which includes liberalisation and deregulation of the onshore ringgit hedging market, streamlining treatment for investment in foreign currency assets, incentives and treatment of export proceeds.

It requires exporters to convert 75% of their foreign currency proceeds into ringgit.

The new policy was introduced to rebalance demand and supply in the foreign exchange market and reduce volatility of the local currency against the US dollar.

Dzulkifli said the central bank did not want to pressure companies with its new measures, and was therefore providing some flexibility in assisting them.

“By doing this, the exporting companies will not be affected when converting their dollar into the ringgit and vice versa.

“The central bank also wants to continue making Malaysia an attractive place for doing business and assist local companies in exporting their products,” he added. – Bernama

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