“This is really a terrible blow to the economies of the whole world.”, NYC Limits Restaurants to Takeout, Shuts Theatres: Virus Update. So, the ringgit also not spared and came under severe selling pressure. Mahathir had ruled Malaysia until he abruptly resigned last month, setting off a power struggle that led to Muhyiddin Yassin becoming premier backed by a loose coalition of parties from across ruling and opposition coalitions. You are currently offline. Mahathir, 94, is the country’s longest-serving leader, serving as prime minister for about a quarter-century in two stints. The 1997 crisis led to widespread financial and political upheaval across Asia. They can read the article in full after signing up for a free account. The coronavirus pandemic has disrupted the movement of people and supply chains. Consumers were likely to focus only on food and health products, which may still attract some investments, he added. PUTRAJAYA (BLOOMBERG) - Tun Dr Mahathir Mohamad, the former premier who steered Malaysia's recovery from the 1997 Asian financial crisis, expects the current coronavirus pandemic to hit the global economy even harder. The coronavirus pandemic has disrupted the movement of people and supply chains. Dr Mahathir joins other world leaders in warning that the virus impact may be worse than past periods of upheaval. Sign up here for our daily newsletter on what you need to know. No. "This is the wrong time to take over the government," he said. But a log-in is still required for our PDFs. Before it's here, it's on the Bloomberg Terminal. Get unlimited access to The Straits Times and more at S$ 0.99/month. The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.. Determinants of External Debt: The Case of Malaysia, ECONOMIC CRISIS IN MALAYSIA: CAUSES, IMPLICATIONS AND POLICY PRESCRIPTIONS, Malaysia ten years after the Asian financial crisis, Recent financial crisis in Malaysia: response, results, challenges, Malaysian Economics and Politics in the New Century, From Crisis to Recovery: East Asia Rising Again? Dr Mahathir expressed doubt over the new government's ability to steer the country to recovery. You can read this subscriber-only article in full, All done! PUTRAJAYA (BLOOMBERG) - Tun Dr Mahathir Mohamad, the former premier who steered Malaysia's recovery from the 1997 Asian financial crisis, expects the … European Central Bank President Christine Lagarde this month warned the economic fallout could be similar to the 2008 global financial crisis, while Singapore Prime Minister Lee Hsien Loong said it might be worse. "This is worse than the financial crisis," he said in a Bloomberg Television interview. The gift link for this subscriber-only article has expired. "Investor confidence is very low not only for Malaysia, it's for the whole world," he said in the interview at the administrative capital of Putrajaya. "The country has never been in such a state before.". Malaysia offers an excellent case study in interna-tional development due to its role as an export-dependent developing coun- Malaysia's policies saw it recover from the crisis at least as fast as countries that implemented IMF policies. “Investor confidence is very low not only for Malaysia, it’s for the whole world,” he said in the interview at the administrative capital of Putrajaya. We have been experiencing some problems with subscriber log-ins and apologise for the inconvenience caused. We’re tracking the latest on the coronavirus outbreak and the global response. “The country has never been in such a state before.”, Supreme Court Refuses for Now to Halt by-Mail Abortion Pills, Money Surges to Biden Camp During Debate: Campaign Update, HCA Healthcare to Return $6 Billion in Government Virus Aid, Thirteen Charged in Plot to Seize Michigan, Kidnap Governor, Yale Sued by Justice Department Over Race-Based Admissions, Michigan Governor Blames Trump for Fostering Hate Groups. Crisis, Recovery, and the Road Ahead This article offers an analysis of contemporary economic development in Malaysia, focusing especially on the causes and consequences of the 1997 Asian Financial Crisis. Millions of people fell below the poverty line as economies contracted and currencies plunged, while governments fell across the region. : Tzong-shian Yu and Dianqing Xu, editors; World Scientific Publishing Co. Pte. Princeton Renames a College for Black Alum, Dumps Woodrow Wi... Suga’s Daily Schedule May Carry Key Insights for Stock Inves... Mahathir Mohamad weighs in on the impact the coronavirus is having on the economy and the government's handling of the outbreak. Millions of people fell below the poverty line as economies contracted and currencies plunged, while governments fell across the region. You have reached your limit of subscriber-only articles this month. "Because if you invest and you cannot sell, you don't invest.". In-depth analyses and award-winning multimedia content, Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months*, Coronavirus microsite: Get latest updates, videos and graphics, Coronavirus: Impact on economy already exceeds Sars, recession possible, says PM Lee, Interactive: How coronavirus is spreading across the world, Tan Sri Muhyiddin Yassin becoming premier, 12 new Covid-19 cases in Singapore, including 2 in the community and 6 imported cases, Next 48 hours critical for Trump's care, source says; but doctors say Trump 'doing very well', Former Thai PM Thaksin had coronavirus but recovered: Source, Malaysian leaders draw flak after post-election coronavirus jump, Interactive: How the world lost one million lives to Covid-19, Experts in Britain warn coronavirus is out of control, Coronavirus super spreaders drove explosive outbreak in India, South Korea's new Covid-19 cases in triple digits again as Chuseok holiday travels begin, Coronavirus: Millions cram into China's airlines as virus torments other carriers, 'Lockdown Lite' is the new strategy for fighting Covid-19. "This is really a terrible blow to the economies of the whole world.". Mahathir Mohamad, the former premier who steered Malaysia’s recovery from the 1997 Asian financial crisis, expects the current coronavirus pandemic to hit the global economy even harder. White House Open to Bigger Stimulus Bill as Mnuchin, Pelosi... Pence-Harris Debate Draws 58 Million Viewers, Leap From 2016. KUALA LUMPUR (March 16): Mahathir Mohamad, the former premier who steered Malaysia’s recovery from the 1997 Asian financial crisis, expects the current coronavirus pandemic to hit the global economy even harder.“This is worse than the financial crisis,” he said in a Bloomberg Television interview with Haslinda Amin. A couple wearing protective face masks on a street in Kuala Lumpur, Malaysia, on March 6, 2020. Corpus ID: 52204286. The financial contagion that affected Asian countries from mid-1997 also hit Malaysia and the Philippines, but their experiences were somewhat different from other countries. Malaysia emerged relatively better off, with economic growth rebounding in just a year. This article is now fully available for you, Please verify your e-mail to read this subscriber-only article in full. Have a confidential tip for our reporters? “This is worse than the financial crisis,” he said in a Bloomberg Television interview with Haslinda Amin. Dr Mahathir had ruled Malaysia until he abruptly resigned last month, setting off a power struggle that led to Tan Sri Muhyiddin Yassin becoming premier backed by a loose coalition of parties from across ruling and opposition coalitions. This time, pegging the exchange rate won't help, Dr Mahathir said. Hussin, Nazni Noordin & Mohd Zoolhilmie Mohamed Sawal / Voice of Academia Vol.5 No.1 2010, DIVIDEND POLICY AND INFORMATION ASYMMETRY FROM THE SIGNALING PERSPECTIVE, A study of the causes and effects of abandoned residential projects in Malaysia, The mediating effect of charismatic leadership communication and organizational credibility in the relationship between crisis responsibility and perceived organizational reputation, Institutional Ownership, Board of Directors and Yield Spreads in Long- and Medium-term Corporate Bonds and Sukuk. $1.25 FINANCIAL CRISIS 1997 Stages is 1997 Financial Crisis On May 1997, the Thai baht came under severe pressure from speculative attacks. The comovement of the selective ASEAN stock markets: is there any impact on Malaysian stock market? Some features of the site may not work correctly. International Monetary Fund (IMF) officials later acknowledged that the measures put Malaysia ahead of the curve. “Because if you invest and you cannot sell, you don’t invest.”. Ltd., Singapore, 2001, The Asian economic crisis: policy choices, social consequences and the Philippine case, Migrant labour in Malaysia: Impact and implication of the Asian financial crisis, THE MALAYSIAN FINANCIAL CRISIS: ECONOMIC IMPACT AND RECOVERY PROSPECTS, Abbas Talebbeydokhti, Mir Sajjad, … Mohsen Afshari, By clicking accept or continuing to use the site, you agree to the terms outlined in our. Until we resolve the issues, subscribers need not log in to access ST Digital articles. International Monetary Fund officials later acknowledged that the measures put Malaysia ahead of the curve. Malaysia emerged relatively better off, with economic growth rebounding in just a year. 198402868E. All rights reserved. “This is the wrong time to take over the government,” he said. Zaherawati Zakaria, Zaliha Hj. Mahathir Says Opposition Lacks Votes to Oust Malaysia Leader. European Central Bank President Christine Lagarde this month warned that the economic fallout could be similar to the 2008 global financial crisis, while Singapore Prime Minister Lee Hsien Loong said it might be worse. This time, pegging the exchange rate won’t help, Mahathir said. The 1997 crisis led to widespread financial and political upheaval across Asia. Stocks Climb to Five-Week Highs; Bonds Gain: Markets Wrap, Goldman’s Abby Joseph Cohen Warns Over ‘Considerable’ Market Downside, U.S. Jobless Claims Show Scant Improvement at 840,000 Last Week, Biden’s Chances of Winning Hit Record 82.8%: FiveThirtyEight, Regeneron Says Trump Test Results May Show Drug’s Antibodies. The poor in Malaysia are significantly better off today than they would have been under IMF policies and Malaysia has benefited, in a number of other ways, from having charted its own course through the crisis. Mahathir joins other world leaders in warning that the virus impact may be worse than past periods of upheaval. Mahathir Mohamad, the former premier who steered Malaysia’s recovery from the 1997 Asian financial crisis, expects the current coronavirus pandemic to hit the global economy even harder. Share gift link below with your friends and family. Financial Crisis of 1997 / 1998 in Malaysia : Causes , Impacts and Recovery Plans @inproceedings{Hussin2010FinancialCO, title={Financial Crisis of 1997 / 1998 in Malaysia : Causes , Impacts and Recovery Plans}, author={Z. Hussin and Nazni Noordin and Mohd Zool Hilmie and Bin Mohamed Sawal}, year={2010} } He was the architect of Malaysia’s capital controls in 1998, which were widely panned at the time. Sign up for the ST Asian Insider newsletter to get exclusive insights into Asia from our network of overseas correspondents. Dr Mahathir, 94, is the country's longest-serving leader, serving as prime minister for about a quarter-century in two stints. Request PDF | On Mar 6, 2007, Mohamed ARIFF and others published The Malaysian financial crisis: Economic impact and recovery prospects | Find, read and cite all …