Journal article
Malaysian financial system and the Asian financial crisis
Global Business & Economics Review, Vol.6(2), pp.191-209
2004
Abstract
The last decade has witnessed three distinct crises: 1992-93 European crisis, 1994-95 Mexican crisis and 1997-98 Asian crisis. The Asian financial crisis raised serious concerns about the vulnerability of the Malaysian financial system. Although the Malaysian economy as responded well to capital controls and other measures adopted by the government and Bank Negara Malaysia, concerns remain regarding their long-term viability. This paper attempts to explain the reasons for the success of the restructuring of the Malaysian financial system. In addition, the paper argues that, given the high level of competition faced by Malaysia's export oriented industries, especially from China, long term economic growth will require Malaysia becoming a regional financial centre. This would require Malaysia to remove all capital controls and allow its currency to fluctuate freely. Instead of relying on capital controls, the rate of accumulation of short-term foreign debt on be better controlled by a tax on short-term capital inflows.
Details
- Title
- Malaysian financial system and the Asian financial crisis
- Authors
- Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of BusinessD Gupta (Author) - University of Canberra
- Publication details
- Global Business & Economics Review, Vol.6(2), pp.191-209
- Publisher
- Inderscience Publishers
- DOI
- 10.1504/GBER.2004.006225
- ISSN
- 1097-4954
- Organisation Unit
- Indigenous and Transcultural Research Centre; School of Business and Creative Industries; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99449778002621
- Output Type
- Journal article
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