ASEAN KEY DESTINATIONS
Malaysia monitoring hot money
Malaysia will closely monitor the inflow of foreign investments into the stock market since registering record highs from Monday.
Deputy Finance Minister Datuk Donald Lim Siang Chai said the government was concerned about the inflow of money and was on the lookout for any "hot" money flows by monitoring inflows online in real time.
"Hot" money flows are abnormal capital inflows which can distort economies and artificially drive up currencies.
"The funds coming in have to go though investment banks and they are required to inform Bank Negara about these inflows," said Lim yesterday.
He said the nation's strong foreign reserves worth US$106bil would help hold out against any unforeseen circumstances.
He said that although the country practised a free economic policy and could not control money coming in or out of the country, the government would engage with managers of substantial funds to stay longer in the country.
"But if they are syndicates, we have other ways of dealing with them," added Lim.
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