Repatriate profits of GLIC, GLC to strengthen ringgit value, says economist

02 Jun 2023 08:00am
Photo source : Free stock images
Photo source : Free stock images
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SHAH ALAM - The government must prioritise repatriating foreign investments from Government-Linked Investment Companies (GLIC) and Government-Linked Companies (GLC) to strengthen the value of the ringgit.

Universiti Kuala Lumpur Associate Professor economist Dr Aimi Zulhazmi Abdul Rashid said a coordination is needed to ensure a surplus in country's trade that moves continuously.

"The government needs to have a comprehensive plan to restore the value of the ringgit, it isn't just like putting out a fire when there is a fire.

"Ringgit coordination need to be done as soon as possible such as ensuring export payment in foreign currency is quickly converted to local currency.

"Besides, the government needs to reduce the amount of imports in the country and raise total exports to ensure the country's trade surplus continue," he said.

The government should pay particular attention to Permodalan Nasional Berhad (PNB), Employees Provident Fund (EPF), Tabung Haji, and Khazanah Nasional Berhad as important GLICs and GLCs, he said

Aimee Zulhazmi also suggested that Bank Negara Malaysia (BNM) emulate Monetary Authority of Singapore (MAS) to diversify foreign currency through savings or reserves.

"We can learn how MAS manages currency successfully which continues to be strong, balanced against United States dollars.

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"In addition, reserves (BNM) can also be expanded with the addition of gold and silver as a metal commodity which acts as a higher investment than the inflation rate," he said.

Meanwhile, Aimi Zulhazmi said that implementing measures to block or control the flow of the ringgit is unnecessary at the moment.

"Foreign workers may delay sending money back to their home countries due to the depreciation of the ringgit, which results in lower exchange rates.

"For sure they will wait until ringgit recovered," he added.

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