## Malaysia: Selected Issues

_IMF Staff Country Reports, September 14, 1999_

## Source details

**Canonical URL:** [Malaysia: Selected Issues](https://www.imf.org/en/publications/cr/issues/2016/12/30/malaysia-selected-issues-3227)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/30/malaysia-selected-issues-3227/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/30/malaysia-selected-issues-3227/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/30/malaysia-selected-issues-3227/bundle-manifest.json)

## Bibliographic details
- Published: September 14, 1999
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451828306.002

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### Summary and central focus
- This Selected Issues paper analyzes the use of capital controls and evolution of the capital control regime in Malaysia.
- The paper highlights that following a period of strong downward pressures on the ringgit, the Malaysian authorities introduced on September 1, 1998 a wide range of capital controls along with pegging the exchange rate at RM 3.8 vis-à-vis the U.S. dollar.
- The paper provides a brief review of Malaysia’s approach to capital account liberalization prior to September 1998.
- It also reviews the circumstances surrounding the imposition of the controls in September 1998, and their impact.

### Capital controls: chronology and measures
- Introduction of a wide range of capital controls on September 1, 1998.
- Pegging of the exchange rate at RM 3.8 vis-à-vis the U.S. dollar following strong downward pressures on the ringgit.

### Scope of analysis
- Review of Malaysia’s approach to capital account liberalization prior to September 1998.
- Review of the circumstances surrounding the imposition of the controls in September 1998.
- Assessment of the impact of the controls.

### Thematic subjects covered
- Banking
- Corporate sector
- Economic sectors
- Exchange rate flexibility
- Exchange rates
- Fiscal policy
- Foreign exchange
- Inflation targeting
- Monetary policy

### Keywords (as provided)
- Asia and Pacific
- bank
- banking system
- Corporate sector
- CR
- East Asia
- exchange rate
- Exchange rate flexibility
- Exchange rates
- export elasticity
- federal government
- federal government budget
- Global
- government task
- Inflation targeting
- investment program
- ISCR
- Malaysia
- private sector
- ringgit
- states expenditure responsibility

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## Content in this bundle

- **Malaysia:  Selected Issues**
  - [Malaysia:  Selected Issues (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/1999/_cr9986.pdf.md){rel="alternate" type="text/markdown"}
  - [Malaysia:  Selected Issues (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/1999/_cr9986.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/30/malaysia-selected-issues-3227_