Malaysia Financial Crisis 1997
1997 southeast asian haze.
Malaysia financial crisis 1997. Economic growth picked up in 1997 99 after stalling in 1996 due to a series of natural disasters and increases in world prices of copper and cashmere. The year 1997 saw drastic changes in malaysia. And the second an offshoot of the recent global financial crisis which originated in the us.
And in this essay i will be focusing on an important crisis that happened in singapore the 1997 east asian financial crisis. A collapse of the thai baht caused a domino effect in the region causing their currencies to come under attack followed by a rapid depreciation. Thailand had a fixed exchange rate system.
The factors that triggered the 1997 crisis was negative perceptions of the malaysian economy following the dramatic collapse of the thai economy. 2001 embassy and mrt bomb threat. To give a brief overview on the asian financial.
The 1997 asian financial crisis was the crisis that affected many asian countries in july 1997. Tan sri zeti akhtar aziz who was chief economist of malaysia s central bank at the time later becoming governor recalls her experience of the crisis including having to implement policies that went against the conventional economic wisdom of the time such as pegging the currency and imposing capital controls on foreign investors. The malaysian economy s gdp did not recover to 1996 levels until 2003.
Thailand s currency baht collapsed in july 1997. Mongolia was adversely affected by the asian financial crisis of 1997 98 and suffered a further loss of income as a result of the russian crisis in 1999. The financial crisis in malaysia in mid may 1997 the thai baht came under severe pressure from speculative at tacks.
The first from 1997 to 1999 known as the asian financial crisis as this is where it originated. 2006 avian flu. Cause of the asian financial crisis of 1997 during asian financial crisis the thai baht devaluation the malaysian ringgit was attacked by speculators the overnight rate jumped from under 8 to over 40.
Overview of the financial crisis. The crisis originated in thailand. After posting some of the most impressive growth rates in the world at the time the so called tiger economies saw their stock markets and currencies lose about 70 of their value.
The asian countries affected were thailand south korea malaysia indonesia singapore and the philippines. The asian financial crisis of 1997 affected many asian countries including south korea thailand malaysia indonesia singapore and the philippines. The ringgit was also not spared and came under severe selling pressure.
One of the most significant events in the history of the malaysian economy was the asian financial crisis which caused malaysia s gdp to shrink from us 100 8 billion in 1996 to us 72 2 billion in 1998. Malaysia and other southeast asian countries have experienced two major financial crises in the past two decades.
