Financial Crisis Hit Malaysia
1.0 INTRODUCTION
In 1997, there are the one big issue happen in the global market which is the Asian faces the economic crisis problem This problem have create the big negative impact to the almost of the country in the Asian nation especially in the economic and also the financial condition. According to the research from ADBI Institute (2008) that the crisis is identified started in Thailand and later is spread to all the near country that located in the Asian nation. Thailand before this known as the country that hold the strong economy where their economic condition is stable for almost 1 decade before they face the economic crisis in July 1997.
2.0 ECONOMIC CRISIS: THAILAND
The Thailand is applied the open market in their home country in order to attract the inflow the capital and investors in their country. According to the Laplamwanit (1999) the reason Thailand take a move to open market because of the several factors. The first is to cover up the Thailand economy. When the investors invest in the development of the country, this will boost up the economy. The other reason Thailand want the better economic condition and the last one were outside factors such as stagnation of the Japanese country and also the recession in the Europe country in 1990. From all these factors, Thailand enjoy have enjoyed the long duration time to get the nominal exchanged stability. The country adapts the step that to take the inflation rate low. Besides, Lamlamwarit also stated that economic Thailand also has the criteria that have the high saving for the country which is 33.3% from KDNK in 1991 until 1995 and also has the world most profitable bank which is Thailand Bank.
The successful story of Thailand in the economy have create the threat especially this situation will attract the speculative action in the international condition. This is because according to the Krongkaew (1999) Thailand has a lot of overflow capital and the banking institution increases
In 1997, there are the one big issue happen in the global market which is the Asian faces the economic crisis problem This problem have create the big negative impact to the almost of the country in the Asian nation especially in the economic and also the financial condition. According to the research from ADBI Institute (2008) that the crisis is identified started in Thailand and later is spread to all the near country that located in the Asian nation. Thailand before this known as the country that hold the strong economy where their economic condition is stable for almost 1 decade before they face the economic crisis in July 1997.
2.0 ECONOMIC CRISIS: THAILAND
The Thailand is applied the open market in their home country in order to attract the inflow the capital and investors in their country. According to the Laplamwanit (1999) the reason Thailand take a move to open market because of the several factors. The first is to cover up the Thailand economy. When the investors invest in the development of the country, this will boost up the economy. The other reason Thailand want the better economic condition and the last one were outside factors such as stagnation of the Japanese country and also the recession in the Europe country in 1990. From all these factors, Thailand enjoy have enjoyed the long duration time to get the nominal exchanged stability. The country adapts the step that to take the inflation rate low. Besides, Lamlamwarit also stated that economic Thailand also has the criteria that have the high saving for the country which is 33.3% from KDNK in 1991 until 1995 and also has the world most profitable bank which is Thailand Bank.
The successful story of Thailand in the economy have create the threat especially this situation will attract the speculative action in the international condition. This is because according to the Krongkaew (1999) Thailand has a lot of overflow capital and the banking institution increases
References: http://www.twnside.org.sg/title2/gtrends1.htm http://html.rincondelvago.com/asian-financial-crisis.html http://www.wright.edu/~tdung/asiancrisis-hill.htm http://malaysiansmustknowthetruth.blogspot.com/2011/12/97-98-malaysian-economic-crisis-mess-of.html http://malaysia-today.net/archives/archives-2012/47708-why-malaysia-fared-badly-during-the-199798-economic-crisis http://www.essentialaction.org/imf/asia.htm http://www.columbia.edu/cu/thai/html/financial97_98.html http://www.adbi.org/discussion-paper/2008/03/10/2502.managing.capital.flows.thailand/major.features.of.the.1997..98.asian.financial.crisis/ http://econsmalaysia.blogspot.com/2012/07/asian-financial-crisis15-years-ago.html