The World Bank ( WB ) once described Malaysia & its neighbours as the ” ASIAN MIRACLE ” economies.

The World Bank ( WB ) once described Malaysia & its neighbours as the ” ASIAN MIRACLE ” economies.

The World Bank ( WB ) once described Malaysia & its neighbours as the ” ASIAN MIRACLE ” economies because WB was confident that the fast pace of economic growth would continue and that Malaysia was commited to open-market based policies. The growth was further assisted & strengthened by prudent national economic stewardship and management by both Government and tha Private Sectors. Our economic fundamentals were strong & the Ringgit was favourable. Foreign investors poured in their money into KLSE market capitalisation.Then the unthinkable happened. The ASIAN CRISIS set in on mid July 1977. Asian cried. Our PM had always maintained that currency traders or speculators were the real cause of the crisis. The Asian MIracle was transformed into the ASIAN MISERY. The KLSE lost about 60% of its value & the Ringgit lost about 40% of its value. Debts mounted up and many good companies went bust. I reckoned we were ready and able to neutralise any ” ENDOGENOUS ” element but the ” EXOGENOUS ” ( global ) kind was not our corporate match. All of us could imagine what would have happened if our Government did not intervene. In our neighbouring countries the people went to the street on rampage, looting and killing and one President had to step down from office. The Government quick action & intervention to restore the economy & national intergrity singlehandedly without the WB & IMF avoided disaster and further onslaught. Even the USA during the 2001 economic downturn ( prior to Sept.11th. ) the Congress quickly enacted legislation to provide billion of dollars in financial assistance to save the economy & there was no exogenous element ( aftermath of Desert Storm & Iraq ?).attacking them! Thus the Government intervention in regulating the economy as a precautionary measure is still very much required. I raised my case. …


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