The government will leave it to Bank Negara Malaysia to decide whether exporting companies should be compelled to convert their export proceeds into ringgit, said Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz.

He said the move, which was done by the central bank at the end of 2016, had its advantages and disadvantages as a form of capital control in controlling the difference in interest rates between the ringgit and foreign currencies.

“If we look at the interest rate differential (between the overnight policy rate at three percent and...