Assuming a Malaysia base company is required to make a payment of AUS$100,000 in 6 months time. Its treasurer has collected the following information.

Exchange rates, AUS$/MYR (indirect quotation) Spot rate 0.3204 0.3274 6-month forward rate 0.3120 0.3180

Explain the costs and foreign exchange risks for forward currency hedge, calculate and comment whether or not the Malaysia base company should use forward contract to hedge for the currency risk.