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Friday, March 29, 2024

Malaysia eases currency protections as ASEAN vies for investment

SINGAPORE — Malaysia is easing rules around its currency as peers in the Association of Southeast Asian Nations compete for job-creating investments from multinationals diversifying away from China.

Bank Negara Malaysia, the country’s central bank on Thursday eased regulations to allow companies to hold all of the export earnings in dollars and other foreign currencies. Companies since 2016 have faced a de facto requirement to convert more than 75% of proceeds from exports into ringgit.

The bank says the move is aimed at improving Malaysia’s position in global supply chains and attracting foreign direct investment. It marks a shift toward promoting trade and investment from a stance that had favored protecting the local currency.

Companies will also be allowed to pay for products and services related to supply chains overseas in foreign currencies, as well as to extend the collection…

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