It's untrue that the ringgit's value has gone down partly due to the currency outflow caused by foreign workers who bring their money home to their home countries, Deputy Finance Minister Datuk Kong Cho Ha said.
He added the economic effect caused by the outflow of currency by foreign workers is negligible due to the country's strong economic fundamentals.
Deputy Finance Minister Datuk Kong Cho Ha said foreign workers were only allowed to send their money home through approved local banks.
"During the first quarter of this year, about RM4.5bil or 2.8% of the total currency outflow in the national current accounts were made by foreign workers.
"However, Malaysia's foreign reserves are strong and are able to contain the outflow," he told Datuk Abdul Manan Ismail (BN-Paya Besar) in Parliament on Wednesday.
Kong also said that the Government has no plans to impose taxes on the incomes being sent out by the foreign workers, because each worker sends home only a small amount of their wages.
- The Star -