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Article: Anwar falls ... and Malaysian banks on skid row, too.
- Article from:
- Business Asia
- Article date:
- September 30, 1998
CopyrightCOPYRIGHT 1998 First Charlton Communications Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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As the Mahathir-Anwar political crisis deepens, analysts are suggesting the Malaysian banking sector faces a meltdown similar to that experienced by Thailand and Indonesia.
Mr Chris Nailer, regional economist in Singapore for The Economist Group, said Malaysian Prime Minister Dr Mahathir Mohamed was ignoring the need for foreign capital to recapitalise the nation's banks.
He said the Prime Minister had tipped his hand with his recent decision to introduce exchange controls, pinning the ringgit at 3.8 to the US dollar.
A cap of 30 per cent foreign ownership of Malaysian financial institutions would stay as long as Dr Mahathir was in power, Mr ...