Monday, December 5, 2016

PUSHING MORE AND MORE FACTORIES RUN AWAY, AND EXPORTERS & FOREIGN INVESTORS WILL DEFINITELY SHY AWAY FROM MALAYSIA....BIG RUN AWAY SOON?????????????............

Sephy Did you all know that fund managers in Malaysia cant change MYR to foreign currency to trade foreign stocks as of today?


http://klse.i3investor.com/servlets/stk/7113.jsp

vvvvvvvvvvvvvvvvvv


KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers Association (Margma) wants Bank Negara to allow rubber glove exporters to convert only 50% of their foreign currency proceeds into ringgit instead of the 75% requirement announced last Friday.


The association said in a statement that it hoped the central bank would review its new policy as it would have a detrimental impact on the industry.


“Most local manufacturers and exporters have foreign currency accounts to better manage the spikes and volatility of foreign exchange rates. The rubber glove industry has always used the US currency as a natural hedge to cushion their costings and pricing since 50%-55% of the foreign currency will be used to offset the difference in purchasing raw materials such as synthetic and natural rubber latex as well as chemicals required for rubber glove production,” he said.


“Without this natural hedging, the industry will be placed in a very difficult position as they will be forced to do a double conversion on the currency – from US dollar to ringgit and then from ringgit back to US dollar for all payments,” he added.

“We seek an exemption on this new policy in order for the industry to stay competitive in global business. We hope Bank Negara will be open to a dialogue to discuss this matter in a more comprehensive manner as we are engaging both the Malaysian Rubber Export Council (MREPC) and Malaysia External Trade Development Corp (Matrade) on this matter concerning all exporters, especially those in the rubber glove industry,”  Low said.



“We hope Bank Negara will seriously consider the implications of this policy on our industry and all major exporters affected by this new ruling,” he added.   


The Malaysian rubber glove industry contributes 1.13% to the nation’s gross domestic product.


Export revenue from the industry in 2016 is projected to be RM14.3bil.


As the leading supplier of medical examination and surgical gloves, Malaysia controls 63% of the world market share compared to 21% by Thailand, 5% by China and 3% by Indonesia.


VVVVVVVVVVVVVVV


THE POLICY FROM BANK NEGARA IS FORCING MORE

FACTORIES AND EXPORTERS TO "GO AWAY" AND

SETTING UP NEW FACTORIES/ PLANTS IN OVERSEAS.....

TOP GLOVE IS VERY SMART AND ALREADY DIVERSIFIED QUITE MANY FACTORIES IN 
THAILAND AND OTHER COUNTRIES....

BANK NEGARA IS PUSHING MORE EXPORTERS
TO SEEK SOLUTIONS AND AVOIDING  MALAYSIA................

DIVERSIFY TO VIETNAM, THAILAND, LAOS SEEN AS BETTER WAYS TO SURVIVE............

THE POLICY OF BANK NEGARA IS A KIND OF 
SUICIDE, MAKING EXPORTERS HEADACHE AND 
.......................


MORE EXPORTERS HAVE TO SET UP FACTORIES,
OFFICES OUTSIDE MALAYSIA TO AVOID
TROUBLESOME AND RED TAPE......

WILL THIS MEASURE  FRIGHTHENING
EXPORTERS AND INVESTORS????????




No comments:

Post a Comment