Capital movements and Penang’s manufacturing sector

By Chan Huan Chiang

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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...

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Chan Huan Chiang

is a senior research fellow at the Penang Institute.