Trade in currency where product is made, MICCI advises

GEORGE TOWN: Malaysian International Chamber of Commerce and Industry (MICCI) is urging local companies to conduct their business in the currency of the country where the product is manufactured in view of the declining value of the ringgit.
MICCI president Datuk Jalilah Baba pointed to China as an example where such arrangements have been made on a government level.
She said the facility is there for companies to conduct their businesses in yuan, the Chinese currency, without having to convert to the US dollar first.
"This is the way to go for MICCI members and I urge all Malaysian companies to do the same," she said in an ad-hoc press conference after attending a MICCI Penang luncheon cum dialogue with chief minister Lim Guan Eng.
For Budget 2016, Jalilah said MICCI has proposed the federal government to remove the 15-year time frame for tax incentives which kicks off in the year companies begin their expansion.
She said these incentives, like pioneer status (PS), tax holidays and investment tax allowance, expire 15 years after they begin.
Jalilah said allowing these incentives to continue could encourage companies to choose to stay in Malaysia which could generate economic activities and benefit local companies in the supply chain.