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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (13093)	10/29/1997 9:38:00 AM
From: Rupsky	Respond to of 50167

Ike, thanks. When does AG fedspeak? Have a GREAT day Rupsky

To: IQBAL LATIF who wrote (13093)	10/29/1997 10:38:00 AM
From: Tom Trader	Read Replies (3) \| Respond to of 50167

Iqbal and anyone else interested On Sunday evening amidst all the frenzy re SE Asian markets, I sent an e-mail to a contact in Malaysia who is a senior executive with a multi-national technology company who is based in Malaysia. I asked him certain specific questions and he responded to each one. My objective was two-fold: first to get a feel for what the perception is in SE Asia of what is going on--also the impact on US companies and whether investing in the markets there --stocks and/or real-estate would be premature. This is admittedly the opinion of just one person--albeit a person who by virtue of his position is qualified to offer an opinion. I thought that you might be interested in what he has to say. ********************************************************************** 1. Are the economic woes in Malaysia affecting every-day life and the common person? 1.not yet.since the m'sian govt has not defended the currency by increasing interest rates,it has given a breather to financial institutions who ,i suspect ,are overextended in loans to the property market.as a result people who are on loans have not felt the impact yet. 2. Is there any sense as to how long it will take for things to sort themselves out? 2.it will take well into next year and beyond to sort things out.if the currency slides to unmanageable levels then the govt has no choice but to raise interest rates thus impacting on the overextended financial sectors.the govt has to consider the pros and cons everyday by monitoring trends and actual data.then they will have to choose the less painful path. 3. Are the losses in the Malaysian stock market impacting the value of other assets-- for example are people having to liquidate real-estate, gold, etc to compensate for these losses? 3.not yet.same as 1. 4. Do you have any idea as to the industries in the US that are likely to be the most adversely impacted by the economic problems in SE Asia? 4.US industries who have a stake in major projects like the Bakun Dam and other infrastructure projects will be affected.high tech companies will NOT be affected.also,those involved in properties will have a rough ride when interest rates go up. 5. Have real-estate prices declined very much since they peaked in Malaysia? Is it felt that they are likely to decline further? 5.real estate prices are holding overall.i suspect that they will not be able to hold on for too long.if interest rates go up..... 6. Is corporate profitability in Malaysia being adversely affected by the recent down-turn? 6.corporate profitability has not been affected yet.the recent budget helped by reducing corporate taxes by 2%. 7. Any other information that you can provide me 7.IMHO,the recent turn of events are a TOTAL surprise.I had suspected that the property market was overheated and so i got rid of a property in august for a good price.i had got that property in january of the previous year.it had gone up 30% in 18 months.i never expected our currency to drop.in hindsight,many so-called experts(on CNBC and CNN) are saying that we should have expected all this.thats a crock! in SEA,the ranking of countries that can weather this storm is as follows:singapore,malaysia,indonesia,philipines,thailand.[thailand has reached meltdown stage where the people are suffering terribly.]{thais are selling off assets like crazy}<the ranking reflects the overextension of the banks and financial institutions in these countries> i also see the present situation as one filled with opportunities since bargains can be obtained.the judgement is merely to decide on whether the bottom has been reached.in light of the latest events around the world,i have to say no.its not been reached. i have a certain bias FOR hitech US companies.i suspect that those battered recently are good long term bargains. thats all. if u need any further clarifications i will definitely help any way i can.