Foreign cash flies out of Malaysia
Tuesday 09 February 1999
The move followed Malaysia's recent lifting of a six-month ban on capital flows, to be replaced next week by a tax of up to 30 per cent on funds moved out of the country.
The flight of newly released money sent Malaysian shares tumbling 5.85 per cent in heavy trading. The fall dragged other stockmarkets in Asia lower too, with falls in Seoul, Bangkok, Jakarta and Hong Kong.
The switch from overt capital controls to a tax on movements of funds out of the country of up to 30 per cent - less on longer-term investments - was intended to encourage foreign investment, but backfired as those trapped by earlier restrictions made for the exit.
Although the recurrent financial crises of the past two years had persuaded a number of prominent economists that capital controls could be a useful policy in emerging markets, Malaysia was the only affected country to try them.
Its experience has now confirmed the view that any restrictions simply discourage foreign investment.
- 1 Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
- 2 Pope Francis issues top 10 tips for happiness – including don’t try to convert other people
- 3 Arturo Vidal to Manchester United: Midfielder set to force through move to Louis van Gaal's Red Devils - reports
- 4 Disney heiress Abigail disowns her share of family profits in West Bank company
- 5 Israel's propaganda machine is finally starting to misfire
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...