The Ipoh Timor MP’s comments come in the wake of the ringgit being at its weakest level since the Asian Financial Crisis over 20 years ago, when it hit an all-time low of 4.8850 to the US dollar.

“Strategic intervention in foreign exchange can elevate its value as a last resort, but BNM should first establish a ‘red line’ only known to itself,” Lee said in a statement, adding that the ringgit had gone down by over 4% since the start of the year.

Lee said the “red line” would only be a stop-gap plan to halt the ringgit from plummeting further.

BNM said on Tuesday the ringgit’s drop did not reflect the “positive prospects” of the Malaysian economy, as it has been influenced by “external factors”, including the market’s reaction to US interest rate expectations, geopolitical concerns, and uncertainty surrounding China’s economic prospects.

Lee also suggested that the government mandate that foreign expatriate workers be paid in ringgit to increase its usage. He said half of American expats and 31% of expats from other countries are fully remunerated with their respective home currencies.

“During this period of significant foreign direct investment inflow and technology transfer by expert expatriates, such unpopular yet necessary intervention will enhance local economic activity and stabilise the ringgit,” he said.

Lee also suggested promoting the use of local e-payment platforms among foreign tourists, thus directly increasing the demand for ringgit, reducing transaction costs, and improving data collection.

“Security concerns will always be in the background. However, if done well, (e-payment platforms) can be useful in rescuing the ringgit,” the first-term MP said.

Another measure Lee suggested was for the government to attract more overseas students to pursue higher education in Malaysia.

With more foreign students, he said, their expenditure in ringgit here will boost the local currency and contribute to the local economy.