Remember the recent news about disastrous capital flight from Malaysia?
Says UBS: “Question: which Asian country had the biggest FX losses in 2009?” The answer is – “Malaysia and by a very large margin; we estimate that official reserves fell by well more than one quarter on a valuation-adjusted basis”
“Who is responsible for this massive outflow? And where has it gone? The questions cannot be answered from the data and probably will not be by a government that knows its own state-controlled enterprises, headed by Petronas, may probably be responsible for part of it. The more certain reason however is the outflow of local private capital has been taking place on an unprecedented scale in response to political instability, massive official corruption and discrimination against non-Malays”
Yup, that’s the one – from the Asia Sentinel.
Read full story here.
And today, I believe we have a response from Bank Negara Malaysia, shown below –
(Click on image for the Bernama report)
Too small ah? Wokay, lemme enlarge the pertinent section for yer –
Sooo .. what’s the comparative international benchmark for a nation’s foreign exchange reserve?
Yup, the mighty dollar from the Hoonaited States of America.
Doesn’t make an iota of a difference, does it?
Oh well … Hawala anyone?