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To: CRICKET who wrote (94611)	2/4/1999 6:24:00 AM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

<Asian Economy> Malaysia eases Capital Controls. Cricket: I think this news could be viewed by the market as friendly,perhaps another minor hint that things could be getting a little better in some of these countries. ========================== Malaysia's Finance Minister Daim Eases Capital Controls, Unveils Exit Tax Malaysia's Daim Unveils Exit Tax, Easing Controls (Update2) (Adds more investor comments.) Kuala Lumpur, Feb. 4 (Bloomberg) -- Malaysia ended a ban on foreign portfolio investors taking money out of the country, seeking to restore international confidence and attract the funds it needs to rebuild its shattered economy. Funds, including Jardine Fleming and Aberdeen Asset Management, with about $10 billion trapped in Malaysian stocks and bonds will be able to take their money out of the country, paying a so-called ''exit'' tax of as much as 30 percent. Furthermore, money entering the country on or after Feb. 15 this year will only be taxed on the profit it generates. ''The new policy will allow portfolio investors to repatriate their capital and profit as well as encourage new capital inflows into the country,'' Finance Minister Daim Zainuddin said at a briefing, from which the foreign press was barred. The five-month old ban on foreign investors repatriating funds had made Malaysia a pariah for global investors, kicking it out of Morgan Stanley Capital International indexes and earning it a near-junk status from global credit-rating companies. The new plan may bring foreign funds back into the country as it looks to raise about 60 billion ringgit ($15.8 billion) through 2000 to re-capitalize its banks and bolster an economy battling its deepest recession in four decades. It may also put Malaysia back into the MSCI indexes, which are closely tracked by investors. ''I think capital will come back'' to Malaysia, said Ian Lui, who helps manage S$500 million of funds at Indocam Singapore Ltd. ''After some initial capital outflow by funds that need to fulfill their redemption obligations, I think the net-net effect will be more funds flowing in.'' Kuala Lumpur's benchmark stock index was 6.93 points, or 1.22 percent, higher at 575.84.