Capital movements and Penang’s manufacturing sector
By Chan Huan Chiang
April 2010 UTTER ECONOMICS
BUSINESS NEWS in the past few months has highlighted concerns about capital flight – how Malaysia’s foreign reserves have fallen sizeably despite a positive current account surplus brought about by the country’s export earnings.The concerns may be genuine, but the direction of capital movement being experienced has been taken into account, as a contingency, as part of a monetary policy designed and adopted by Bank Negara Malaysia. There are a variety of policy options available to central banks across the...
Chan Huan Chiang
is a senior research fellow at the Penang Institute.
