Malaysia eases

MALAYSIA IS to ease some of the capital controls imposed during the financial market turmoil in September, a government official confirmed yesterday, but they are unlikely to be scrapped altogether.

The government is to modify the rule banning foreign investors from taking money out of the country for at least a year. Instead the government may levy an "exit tax" that would favour long-term investors over short- term. The government has also approved a deal allowing some foreign investors to sidestep currency controls.

Kuala Lumpur's stock exchange rallied on hopes that the easing may tempt back foreign investment.