Asian Business Issues - Rants & Raves, Illusions & Collusions etc.
Very good post Dali! Next week is an important meeting of the people who de facto rule this country, can you go there and tell them the message?About flip-flops: yes, capital controls was a terrible thing to do, not so much for the control itself at that time, but because the threat is always there that they will do it again. But there was more, CLOB was handled in a terrible way, also the sudden RM 100,000 tax on property transactions. Add to that the way PR's are handed out. The people who design these measures, do they ever think about the longterm impact of them?[Malaysia is tiny country, we cannot say, do it our way or get lost]. We cannot say this? I thought that was exactly what our Minister of Trade said recently? And what did our Johor Sultan say recently, launching the Iskander project which requires huge amounts of foreign investments? Yes, Malaysia has a rather confusing way of dealing with foreigners: "Yes, we want you, no, get lost, we lock your money up here, ehhhh, no come back, no no, forget that, please invest here again ......"[The one thing which has been saving us is the fact that we let our ringgit depreciate so much over the last 9 years. But that comes at our expense in terms of purchasing power.]Exactly, and (I think) an increase in inflation. But if they refuse to count imported items in the inflation calculation, then inflation will be understated, and thus the real growth (growth minus inflation) overstated. According to Bank Negara inflation is about 3% and real growth about 6%, I have my doubts about that.
rohan,good post, you should start a blog soon....loldali
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