Financial Crisis 1997 Impact to Malaysia
TWN Global Economy Series
26
Financial Crisis and Asian Developing Countries
The Impact of the Global Financial Crisis: The Case of Malaysia
GOH SOO KHOON AND MICHAEL LIM MAH-HUI
Third World Network
TWN
The Impact of the Global Financial Crisis: The Case of Malaysia
GOH SOO KHOON AND MICHAEL LIM MAH-HUI
Third World Network
TWN
The Impact of the Global Financial Crisis: The Case of Malaysia is published by Third World Network 131 Jalan Macalister 10400 Penang, Malaysia. Website: www.twnside.org.sg
© Goh Soo Khoon and Michael Lim Mah-Hui 2010
Printed by Jutaprint 2 Solok Sungei Pinang 3, Sg. Pinang 11600 Penang, Malaysia.
ISBN: 978-967-5412-28-8
CONTENTS
1 INTRODUCTION 2 MACROECONOMIC PERFORMANCE PRIOR TO THE 2008 GLOBAL FINANCIAL CRISIS Export-Dependent Economy After the Asian Financial Crisis Inadequate Investments After the Asian Financial Crisis Gross National Savings, Gross Capital Formation and Current Account Balance Persistent Fiscal Deficits 3 IMPACT OF THE GLOBAL CRISIS Impact on Finance Impact on Trade Impact on the Real Economy 4 NATIONAL RESPONSE TO THE CRISIS 5 CONCLUSIONS AND POLICY IMPLICATIONS References 1
3 4 5 8 10 13 13 21 23 27 31 37
ACKNOWLEDGMENTS
This paper was prepared as part of a Third World Network research project on financial policies in Asia directed by Yilmaz Akyüz. An earlier version was presented at the Conference on the Effects of the Global Financial Crisis on Asian Developing Countries and Policy Responses and Lessons, held in Penang, Malaysia on 18-20 August 2009 and organised by the Third World Network and Consumers Association of Penang. The authors wish to thank the following for their helpful insights and comments: Dr Chan Huan Chiang, Dr Cheong Kee Cheok, Dr Rajah Rasiah and Dr R. Thillainathan; and Ms Rosliza Musa for the graphic presentations in this paper. The usual disclaimers apply.
Chapter 1
INTRODUCTION
THE present financial crisis is very different
26
Financial Crisis and Asian Developing Countries
The Impact of the Global Financial Crisis: The Case of Malaysia
GOH SOO KHOON AND MICHAEL LIM MAH-HUI
Third World Network
TWN
The Impact of the Global Financial Crisis: The Case of Malaysia
GOH SOO KHOON AND MICHAEL LIM MAH-HUI
Third World Network
TWN
The Impact of the Global Financial Crisis: The Case of Malaysia is published by Third World Network 131 Jalan Macalister 10400 Penang, Malaysia. Website: www.twnside.org.sg
© Goh Soo Khoon and Michael Lim Mah-Hui 2010
Printed by Jutaprint 2 Solok Sungei Pinang 3, Sg. Pinang 11600 Penang, Malaysia.
ISBN: 978-967-5412-28-8
CONTENTS
1 INTRODUCTION 2 MACROECONOMIC PERFORMANCE PRIOR TO THE 2008 GLOBAL FINANCIAL CRISIS Export-Dependent Economy After the Asian Financial Crisis Inadequate Investments After the Asian Financial Crisis Gross National Savings, Gross Capital Formation and Current Account Balance Persistent Fiscal Deficits 3 IMPACT OF THE GLOBAL CRISIS Impact on Finance Impact on Trade Impact on the Real Economy 4 NATIONAL RESPONSE TO THE CRISIS 5 CONCLUSIONS AND POLICY IMPLICATIONS References 1
3 4 5 8 10 13 13 21 23 27 31 37
ACKNOWLEDGMENTS
This paper was prepared as part of a Third World Network research project on financial policies in Asia directed by Yilmaz Akyüz. An earlier version was presented at the Conference on the Effects of the Global Financial Crisis on Asian Developing Countries and Policy Responses and Lessons, held in Penang, Malaysia on 18-20 August 2009 and organised by the Third World Network and Consumers Association of Penang. The authors wish to thank the following for their helpful insights and comments: Dr Chan Huan Chiang, Dr Cheong Kee Cheok, Dr Rajah Rasiah and Dr R. Thillainathan; and Ms Rosliza Musa for the graphic presentations in this paper. The usual disclaimers apply.
Chapter 1
INTRODUCTION
THE present financial crisis is very different