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To: FR1 who wrote (32372)9/8/1998 10:55:00 AM
From: Loki  Respond to of 97611
 
Franz Ross...Just got back...

I didn't read the article on Malaysia (SCMP). However,
I believe that the government intervention has a short-term effect.
Possibly to mirror what HK is doing. Their dollar reserves are
not as abundant.
US investors are not focused on Malaysia at the moment.
(Instead: Latin America, Russia, Clinton...and now possible fed
rate policy).

"business as usual" .... Do mean prior to or during their
1990's economic surge? Since their surge was "overdone" with
respect to their economic infrastructure it is now going to have to
retrench and find its normal developing growth rate. Government
intervention will only delay or possibly soften the pain of getting there.

Malaysia made great strides in the early 1990's. Politically, as
you know, they have had adversarial relations to Singapore. Presently, their form of government "appears" stable enough to weather the economic storm.

Certainly the situation is extremely dynamic and volatile. This will be expected for several more years. It is very possible that Malaysia will work through its economic problems before several other Asian countries.

It has been a couple of years since my visits to Malaysia and Singapore. These are my observations.

Loki