Is there a risk that Malaysia would declare capital controls given?
Short version No. But it will be managed float to limit exposure Longer Malaysia in 2015 is not Malaysia in 1998. Thankfully the central bank here is run by some of the smartest people on earth Malaysia gdp back in 98 was around usd 70bil. Now is closer to 400. Central bank reserve is around 10 billion back then. Now it's more than 100. Most of debts in the country is internal debt. Back in 98 a lot is in USD. Most importantly backs in 98 was highly leveraged with a high number of non performing loans. Now BNM tighten the rules a lot so the banks are a lot stronger. Most importantly, back in 98, people actually fear of losing jobs and their company being under, now not so much. Klci actually hit a lot of 200 back in 98. Today, we just dip below 1600 after a high of 1800. Things a lot diffrent back in 98 than now.