Category: Finance, Banking & Taxation

Based on the concept of the monetary conditions index (MCI) to underscore the important role of the interest rate parity, the paper attempts to estimate a model of optimal monetary policy for open emerging market economies. It is designed to shed a light of significance of the internal and external equilibrium and provide the basis… Continue reading Estimating Monetary Policy Rules: An Optimal Monetary Conditions Index for Malaysia

The study investigates the presence of rational speculative bubbles in Malaysian stock market by employing duration dependence test using the Weibull’s hazard model and Log Logistic hazard model. Using abnormal monthly real returns, we report the existence of rational speculative bubbles in Malaysian stock market in before (1994–1996) and after (1999–2003) the Asian Financial Crisis… Continue reading Detecting Rational Speculative Bubbles in the Malaysian Stock Market

The article presents the economic outlook for Malaysia from 2007 to 2010. Islamic financial services products are expected to increase by 73% in 2007 and are projected to strengthen in coming years. The country is forecast to maintain its position as the world’s leader in Islamic banking and finance. The country introduced a number of… Continue reading Bright Future For Islamic Finance

The purpose of this research is to study the acceptance of the community in Terengganu towards Islamic banking. The findings revealed that majority of customers have a lack of knowledge and information about Islamic banking. They do not understand the principles of Syariah which were applied in product/services such as Bai’ Bithaman Ajil, Ijarah and… Continue reading Perbankan Islam Dan Penerimaan Masyarakat Di Terengganu

The paper examines the arguments for and against a fixed exchange rate regime for a small open economy like Malaysia and looks at the post crisis actual performance of exchange rate movements of its neighbouring economies. The paper also evaluates the economic performance of Malaysia vis-à-vis that of the rest of ASEAN and discusses whether… Continue reading Pegging Amidst the Floaters Post Crisis Exchange Rate Policy in Malaysia vis-a-vis the Neighbours

The ringgit is free but not floating freely. It is now under “managed??? float. Cynics would call it “dirty??? float. To them, a “clean??? float is synonymous with a “free??? float. The latter is labeled “clean??? as the exchange rate under this mode is determined by supply and demand for the currency without government interventions.… Continue reading The Ringgit’s New-Found Freedom

We examine the market’s reaction around a series of events on the Kuala Lumpur Stock Exchange (KLSE) where the Malaysian government removed short selling restrictions on selected stocks and then subsequently reimposed these restrictions. These events provide a unique opportunity to analyse the effects of short selling restrictions on the price formation process in an… Continue reading Short selling restrictions and market completeness: the Malaysian experience

Unit trusts have become an increasingly attractive option for savers, now that bank deposits earn negative returns in real terms, with inflation rates rising above interest rates offered by commercial banks. To be sure, higher returns on investments are not the only reason why one might want to resort to unit trusts. Publication: MIERScan, 20… Continue reading The Rights of Investors in Unit Trust

This paper contributes to the debate on the use of temporary controls on capital outflows as a crisis resolution measure by examining the outcome of Malaysia’s radical response to the 1997-98 financial crisis. The analysis suggests that carefully designed temporary capital controls were successful in providing Malaysian policymakers a viable setting for aiding the recovery… Continue reading The Malaysian Capital Controls: A Success Story?

The end of the colonial era did not mark the end of the close economic and financial relations that had developed among Britain, Malaysia and Singapore. Both Malaysia and Singapore continued to maintain their pegged exchange rate to sterling until June 1973, and to hold the bulk of their reserves in sterling even after the… Continue reading Monetary Institutions in Malaysia & the Transition to Independence