M'SIA PREPARED TO RAISE LIMIT FOR CURRENCY EXCHANGE

PENANG (Malaysia), Nov 10 (Bernama) -- The Malaysian government is prepared
to consider the proposal by the association of money changers to raise the limit
of foreign currency exchange from RM250,000 to RM2 million (US$1=RM3.55) daily,
said Second Finance Minister Nor Mohamed Yakcop.

"We will bring up the matter for discussion with Bank Negara (Central
Bank)
as soon as possible. Whether this will be agreed upon or otherwise will depend
on the outcome of the discussion," he told reporters after opening the new
building of the Muslim Gold Traders and Money Changers Association, here
Sunday.

Under the Money Changers Act 1998, traders are not allowed to hold foreign
currency stock exceeding RM250,000.

Earlier in his speech, the president of the Muslim Gold Traders and Money
Changers Association, Abdul Waheed S. Abdul Wahab, appealed to the government to
raise the limit of foreign currency trading to enable the traders to expand
their business.

"The ruling is inflexible because we are not allowed to hold foreign
currency stock in excess of RM250,000 each day. This has reduced our holding
power while operational cost is rising," he said.

In another development, Nor Mohamed said the government was willing to
consider whether there was a need to increase the RM7 billion economic stimulus
package announced by Deputy Prime Minister Najib Razak on
Tuesday.

-- BERNAMA