{ "title": "Malaysian Capital Controls: Macroeconomics and Institutions", "publication": "IMF Working Papers, February 1, 2006", "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/malaysian-capital-controls-macroeconomics-and-institutions-18922", "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/malaysian-capital-controls-macroeconomics-and-institutions-18922", "overlayPath": "/en/publications/wp/issues/2016/12/31/malaysian-capital-controls-macroeconomics-and-institutions-18922/index.md", "summary": "We analyze the capital controls imposed in Malaysia in September 1998. In macroeconomic terms, these controls neither yielded major benefits nor were costly.", "sections": [ { "heading": "Summary and central finding", "content": "- Study analyzes the capital controls imposed in Malaysia in September 1998.\n- Main macroeconomic conclusion: the controls \"neither yielded major benefits nor were costly.\"\n- Concurrent market and institutional finding: the stock market interpreted the capital controls (and associated events) as favoring firms with stronger political connections; some connected firms reportedly received advantages immediately following the crisis.\n- Firm-level account finding: connected firms outperformed unconnected firms before the 1997-98 crisis but not afterward.\n- Post-crisis interpretation: connected firms were either not supported as much as the market had expected or the benefits they received were not manifest in their published accounts." }, { "heading": "Macroeconomic analysis", "content": "- Timing: capital controls imposed in September 1998.\n- Aggregate assessment: controls produced neither major benefits nor major costs in macroeconomic terms." }, { "heading": "Market interpretation and political connections", "content": "- Stock market reaction: perceived preferential treatment for politically connected firms following the capital controls and associated events.\n- Reported immediate outcomes: some connected firms reportedly received advantages immediately following the crisis." }, { "heading": "Firm-level financial-account analysis", "content": "- Pre-crisis performance: connected firms outperformed unconnected firms before the 1997-98 crisis.\n- Post-crisis performance: connected firms did not outperform unconnected firms after the crisis.\n- Possible explanations offered in the text: either connected firms were not supported to the degree market anticipated, or any support they received did not appear in published financial accounts." }, { "heading": "Publication and metadata", "content": "- Authors: Natalia T. Tamirisa, Simon Johnson, Kalpana Kochhar, Todd Mitton\n- Publication date: February 1, 2006\n- Series: Working Paper No. 2006/051\n- Issue: 051\n- Volume: 2006\n- Pages: 51\n- DOI: https://doi.org/10.5089/9781451863116.001\n- Stock No: WPIEA2006051\n- ISBN: 9781451863116\n- ISSN: 1018-5941\n- Subjects: Banking, Capital controls, Currencies, Financial crises, Foreign exchange transactions\n- Keywords: capital control, PMC firm, stockbroking company, unconnected firm, WP\n- Disclaimer: \"This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.\"\n\nIMF Working Paper — Malaysian Capital Controls: Macroeconomics and Institutions (Working Paper No. 2006/051, February 1, 2006).\n\n---\n\n Content in this bundle\n\n- wp0651 - Appendix I.\n - wp0651 - Appendix I. (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - wp0651 - Appendix I. (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/malaysian-capital-controls-macroeconomics-and-institutions-18922" } ], "bullets": [ "[Markdown version](/en/publications/wp/issues/2016/12/31/malaysian-capital-controls-macroeconomics-and-institutions-18922/index.md)", "[Structured JSON version](/en/publications/wp/issues/2016/12/31/malaysian-capital-controls-macroeconomics-and-institutions-18922/index.json)", "[Bundle manifest](/en/publications/wp/issues/2016/12/31/malaysian-capital-controls-macroeconomics-and-institutions-18922/bundle-manifest.json)", "Authors: Natalia T. Tamirisa, Simon Johnson, Kalpana Kochhar, Todd Mitton", "Published: February 1, 2006", "Series: IMF Working Papers", "DOI: https://doi.org/10.5089/9781451863116.001", "Study analyzes the capital controls imposed in Malaysia in September 1998.", "Main macroeconomic conclusion: the controls \"neither yielded major benefits nor were costly.\"", "Concurrent market and institutional finding: the stock market interpreted the capital controls (and associated events) as favoring firms with stronger political connections; some connected firms reportedly received advantages immediately following the crisis.", "Firm-level account finding: connected firms outperformed unconnected firms before the 1997-98 crisis but not afterward.", "Post-crisis interpretation: connected firms were either not supported as much as the market had expected or the benefits they received were not manifest in their published accounts.", "Timing: capital controls imposed in September 1998.", "Aggregate assessment: controls produced neither major benefits nor major costs in macroeconomic terms.", "Stock market reaction: perceived preferential treatment for politically connected firms following the capital controls and associated events.", "Reported immediate outcomes: some connected firms reportedly received advantages immediately following the crisis.", "Pre-crisis performance: connected firms outperformed unconnected firms before the 1997-98 crisis.", "Post-crisis performance: connected firms did not outperform unconnected firms after the crisis.", "Possible explanations offered in the text: either connected firms were not supported to the degree market anticipated, or any support they received did not appear in published financial accounts.", "Authors: Natalia T. Tamirisa, Simon Johnson, Kalpana Kochhar, Todd Mitton", "Publication date: February 1, 2006", "Series: Working Paper No. 2006/051", "Issue: 051", "Volume: 2006", "Pages: 51", "DOI: https://doi.org/10.5089/9781451863116.001", "Stock No: WPIEA2006051", "ISBN: 9781451863116", "ISSN: 1018-5941", "Subjects: Banking, Capital controls, Currencies, Financial crises, Foreign exchange transactions", "Keywords: capital control, PMC firm, stockbroking company, unconnected firm, WP", "Disclaimer: \"This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.\"", "**_wp0651 - Appendix I.**" ], "related": [ { "title": "_wp0651 - Appendix I.", "role": "document", "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2006/_wp0651.pdf", "summary": { "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2006/_wp0651.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2006/_wp0651.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/wp/issues/2016/12/31/malaysian-capital-controls-macroeconomics-and-institutions-18922/index.md", "json": "/en/publications/wp/issues/2016/12/31/malaysian-capital-controls-macroeconomics-and-institutions-18922/index.json", "bundleManifest": "/en/publications/wp/issues/2016/12/31/malaysian-capital-controls-macroeconomics-and-institutions-18922/bundle-manifest.json" }, "generatedAtUtc": "2026-09-17T17:44:18.566Z" }