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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (6063)	9/1/1998 8:49:00 AM
From: Bosco	Read Replies (1) \| Respond to of 9980

G'day all - dear Stitch, upon reading the Malay PR, I can certainly understand where you come from. However, personally, I'd be more specific in that regard, i.e., it applies to only Malayesia only, and not the whole of orient. Indeed, by imposing such draconian measure, it indeed will drive investors away and limit its liquidities. However, being a keynesian - not that I know anything about economics <vbg> - I do think govt has a role. More, while I think Malayesia policy is an incorrect one, "Hot Money" should be dealt with [obviously, PM Mahathir Mohammad's defn of "Hot Money" seems to be - um, how shall I put it - a bit xenophobic <g>. Contrasting to the Malayesia policy, HKMA is trying to make betting more expensive. In that regard, I think the latter has a bit more justification without curbing the flow of liquidity. Incidentally, heard an interesting quote from CIBC's Michael Metz on PBS News Hour last nite when he said something like "hot money going around detroying currencies and economies for amusement." In short, I'd argue that broad brush can't paint fine details. best, Bosco [p.s. I did not have the chance to read Kipling's until I was an adult. Great stories. Of course, he was being attacked occasionally for possessing certain colonial attitude.]

To: Stitch who wrote (6063)	9/1/1998 9:24:00 AM
From: B Tate	Read Replies (2) \| Respond to of 9980

TO all; NEWS - Tues evening Kuala Lumpur I am currently watching an interview with Dr. M (Brain surgeon) ;-( I have been away from this thread for a while but had to update those of you that may have investments with Malaysian content. Either direct or indirect. (Worswick - absolutley FORGET SDarby even at .05 USD!) "Offshore Ringgit will be illegal/worthless in 30 days from today, 1 Sept 1998." No offshore Ringgit will be allowed into the country after this 30 day period. Lots of hairy details coming out of his mouth, but Malaysia is going to establish its own monetary rules for international trade it seems. Any export/import of funds will have to be pre-approved by Bank Negara in accordance with the current (Bank Negara established and yet to be determined) rate of exchange. As I type this he is talking about re-valuing the companies on the KLSE since they will not have to worry about outside influences on the price of stock. Also foreign investors will be encouraged with the codicil that any money invested in a company must remain for a period of 1 year. "THIS WILL ENHANCE FOREIGN INVESTMENT POTENTIAL SINCE IT WILL BE A GIVEN THAT THE RETURN WILL BE FIXED!" Folks were are now entering the Twilight Zone of international high finance. As most of you know my Malaysian investments went all to cash in the spring, tommorrow I will withdraw every single Ringgit, exchange it to USD and put it under my mattress. No bull...... As part of a Joint Venture with an American firm I can imagine our phone bills tomorrow. We will have to re-evaluate why we are doing business here since any profits generated will not be allowed to leave the country. What a way to build an economy. This is really frustrating, as you can probably tell from this msg tone I am absolutely beside myself. What a bunch of crap. bt PS Today the ringgit improved to 4.01++ a nice 2% increase. The KLSE went into freefall and ended at approx 260 or 40 some odd points in the toilet. HMMMMMmmmm a 2% increase in currency rate and a 14% drop in KLSE valuation Sounds like a good deal to me! Anyone else??

To: Stitch who wrote (6063)	9/1/1998 12:30:00 PM
From: peter michaelson	Read Replies (3) \| Respond to of 9980

Stitch: I feel that Malaysia may be quite wise in restricting currency flows at this time. It's easy for us wealthy folks to say the world should play by the same rules that made us wealthy. The playground big guys make the rules, but I was small physically as a kid and had to use my wits to get ahead. Malaysia is running out of the dollars which will be needed to service debt and remain a good debtor nation. The dollars need to be conserved at this point. The government has held off this for a long time in hopes that dollars would start to flow back in, but this has not happened. You don't want a Russia scenario in Malaysia - bad for everyone. Stitch, spend some time in Africa! Almost all of those currencies are restricted. It has nothing to do with mysterious easterners, IMO. I don't argue with your point of bullies within Malaysia faring better than the poor - absolutely. The rule of law is fragile. When the bullies (Malaysian bigwigs) no longer care what the teacher (G-7)says, watch out! peter