Velesto urges government to ease forex rules for firms

Move deemed to lessen burden on companies particularly in O&G

KUALA LUMPUR: Velesto Energy Bhd hopes the government will loosen the foreign exchange (forex) requirement for local companies on the conversion of the US dollar to the ringgit when conducting business with international companies in the upcoming 2019 Budget in November.

President Rohaizad Darus said the move would lessen the burden on local companies, particularly those in the oil and gas sector, allowing them to have a longer timeframe to commit to their pay- ments when conducting tional business.

“I hope that there will be a relaxation on the forex (rules) on the requirement for Malaysian companies to convert US dollar to ringgit.

“Companies like us are actually receiving money in US dollars and if that money is converted to ringgit upfront, we will have more time for our (financial) commitments,” he told reporters after signing a memorandum of understanding with Heriot-Watt University interna- Malaysia here yesterday.

Rohaizad also expressed hope the oil and gas industry would get incentives such as relaxation of the tax, saying it would heavily benefit small and medium enterprises (SMEs) in the sector.

“I hope that there would be incentives to encourage the banks to support the local players, especially the SMEs, because when it comes to a downturn (in the oil and gas industry) they (SMEs) would be affected,” he said.

Under the four-year partnership, Velesto Energy and the university will introduce a joint scholarship to open up more opportunities for students hoping to make a career as a petroleum engineer.

Rohaizad said the scholarship is hoped to increase awareness on the importance and relevance of petroleum engineering in Malaysia and globally among the public.

“It also aims to continue building quality human capital in the oil and gas industry and in turn, shape the future of Malaysia’s economy,” he added. — Bernama