UNIVERSITI UTARA MALAYSIA

GMGF5224 PUBLIC FINANCIAL MANAGEMENT

GROUP ASSIGNMENT STORY BEHIND THE HISTORY: FINANCIAL CRISIS 2008, THE DEADLOCK IN US ECONOMY AND ECONOMIC STABILITY IN MALAYSIA

Prepared F r: Dr! Badar"a# H$! D"%

Prepared B&:
Ha'"(a B"%)" A#*ad 8+2,-0 Fa)"% Ha%a%" B"%)" Tar*"d(" 8+.+/2 M #a*ad S#a#0a%" B! Se1# B"d"% 8+./88 M #d Ha2"(" B"% Ha33a% 8+-0,-

Ma3)er 2 P40'"5 Ma%a6e*e%) Se*e3)er . 20+.720+, Ghazali Shafie Graduate School of Government

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$olle,e of #a-) Government and International Studie. /UUM $O#GIS0 Univer.iti Utara Mala1.ia 1.0 Introduction In mid-1997, the Asian financial crisis occurred in the beginning is the economic crisis in Thailand. During the crisis, the crisis affected all countries experiencing currency depreciation, the stoc mar et and the fall in asset !alues. "o!ernment has established a #ational $conomic Action %ouncil &#$A%' on (anuary 7, 199) to ma e concrete proposals to the go!ernment to curb economic decline. The mechanism by the former *rime +inister, Tun Dr. +ahathir +ohamad, ,ith the -ixth +alaysia .inance +inister, Tun Daim /ainuddin has successful sol!e the Asian financial crisis of 199709) +alaysia by a!oid falling into a deeper recession gap &Abdul A1i1 A,ang, 2313'. The method of solution ta en by the go!ernment to o!ercome the economic and currency crisis in 199) has recei!ed many compliments. It is considered as a measure of inno!ati!e, effecti!e and successful.

It is 4uite stable then in economy in the follo,ing years after the crisis until it coming bac in 233). This time, it can be the dangerous and hea!iest economic crisis e!er in 53 years. 6o,e!er, the financial crisis that bro e in mid-2337 and intensified follo,ing the 7ehman 8rothers ban ruptcy in -eptember 233) has triggered a ,orld-,ide economic do,nturn. It sho,n the inflicting billions of ne, losses on a financial system already roc ed by a create housing mar et and a tightening credit crunch. -tarting the late 233), the economic crisis experienced by the failure of the 9.-. financial institutions in many aspects. The recession ,as not to any material extent caused by monetary policy tightening in response to rising inflation. :ather, the main dri!er ,as the un,inding of asset price hi es, financial le!erage and ris appetite built up prior to the crisis.

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The threatened failure of ;acho!ia, the fourth-largest 9.-. ban , the meltdo,n of
2a.hin,ton, the biggest failure in 9.-. ban ing history < that in ordinary times ,ould re4uire

,ee s or months of full-time rescue inter!ention. The subprime asset crisis in 9- ban ing institutions also one of the causes for the financial crisis during that time. -ubprime assets crisis are loans rapidly transformed into li4uidity and then a sol!ency issue. Increased delin4uencies on subprime mortgages resulted in uncertainty surrounding the !alue of a number of asset-bac ed securities that had these mortgage assets in their underlying portfolios. :ating agencies do,ngraded many of the securities to reflect the deterioration in 4uality of the underlying portfolio and announced changes in their methodologies for rating such products. +ean,hile, because the !alues of the assets underlying the securities rapidly declined, the li4uidity in secondary mar ets for ,hat had been tradable securities e!aporated.

The crisis ,orsened ,hen many financial assets suffer losses resulting negati!e impact on earnings. 9.-. economic crisis started due to many factors. There ,ere many causes of the crisis, ,ith commentators assigning different le!els of blame to financial institutions, regulators, credit agencies, go!ernment housing policies, and consumers, among others. Among the causes are dumping non-performing loans at the expense of li4uidity of financial institutions in the 9nited -tates and ,ea ens the real estate industry. ;hat are the ma=or causes behind the history> financial crisis 233), the deadloc in 9- economy?

9.-. economic crisis has affected many countries. The effects of the 9.-. economic crisis happen due to !arious reasons and in !ie, of +alaysia as a highly open economy@ the impact of the global recession ,as felt by the country. -trength of +alaysia can be broadly classified into

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four areas, the strong macroeconomic fundamentals, the economic structure of a more resilient financial system that is more robust and de!eloped, and the effecti!eness and flexibility better policy. The economy has been on a strong gro,th path in an en!ironment of lo, inflation and stable, ,hile the financial system is no, more ad!anced ,ith the regulatory and super!isory structure better. The external position remains fa!orable, ,ith continued current account surplus and the high le!el of international reser!es are a buffer to ,ithstand the rigors of global financial flo,s. 6o,e!er, ho, ,e examined the economic instability in +alaysia during the economic crisis of 233)? ;hat are the effects incurred by +alaysian economic during financial crisis? Therefore, this paper examined real issues of financial crisis 233) in the perspecti!e of deadloc in 9- economy and ho, +alaysians be affected in economic instability in next section.

2.0 The United St te! Econo"ic Cri!i! $conomic crisis in the 9.-. mar et began ,hen the collapse of in!estment ban 7ehman

8rothers to reno,ned 15) year old and also the sale of another leading in!estment ban s +errill 7ynch to 8an of America recently. This incident has earned the ,rath among in!estors and mar et analysts inside and outside the 9nited -tates about ,hat happened to cause the collapse of the giant in!estment ban s 9nited -tates one by one starting ,ith 8ear -tearns sold to (* +organ %hase uses monetary funds from the .ederal :eser!e of 9nited -tates in +arch 233).

The financial crisis this time due to the negligence of the in!estment ban s in the 9nited -tates are racing to loc in profits from the sale of mortgage products to the citi1ens of the 9nited -tates itself. These loans are offered ,ithout thoroughly researching the financial

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!iability or the ability of a borro,er to repay the loan ta en. In the capital mar et , particularly in relation to housing assets , the ban as the pre!ious year expecting the price of a house ,ill be increased manifold , and the borro,er ,ill be able to pay the loan ta en by the ne, mar et !alue is expected to increase . If the borro,er fails to repay the loan, then the ban is still ma ing a profit on the side collateral, the auction house is also expected to increase.

8ut ,hat happened starting in 2337 ,as the different. The !alue of housing mar ets and assets ,as attac by a se!ere crash. This causes the borro,er has declared themsel!es ban rupt and ha!e to get a,ay from paying the loan they ta e. .alling home !alues is due to fundamental factors mar et economies that offer more than the re4uirement supply exceeds demands, especially in areas such as 7as Aegas and +iami.

-ystemic decline in home prices is spreading all o!er the 9nited -tates and cause lenders to find the loan !alue exceeds the mar et !alue of the home being purchased. This caused many borro,ers to declare themsel!es ban rupt resulting in house prices continue to plummet do,n. 6o,e!er, if obser!ed, ,hat I mentioned abo!e is =ust a problem of non-performing loans and ban s that pro!ide loans deals blindly ,ithout loo ing into the bac ground of the borro,er, ,hy the effects experienced by the financial mar ets are so se!ere and too dangerous. There are other factors that cause problems for these loans to be the ,orst financial crisis in history.

As the case in 1997, there are characters to cash in and ta e ad!antage ,hen the mar et is in good condition before 2337 .The characters are the hedge fund operators, those ,ho ha!e purchased the middlemen sell the loan, and the he ,ise men ,ho abuse the mar et their no,-

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ho, in the mar et to create ne, loan products that are made to ta e profit to total loans ta en by homebuyers in America. ;hen an in!estment is made ,ith that great, but do not depend on a certain item or physical products such as buildings, !ehicles, or gold ,hich is the !alue of an in!estment is open to speculati!e price. Therefore, it is !ery dangerous once an economic upturn is only attributed to the pro=ects underta en in the intention mode. Aalue of an in!estment ,ill fluctuate dramatically and in the case of this financial crisis, home !alues are do,n by 15 B - an amount large enough.

Do,nside effects of the negligence of the ban in the sub-prime crisis is caused by the administration of *resident 8ushCs policies ha!e done a lot of extraordinary tax cuts aimed at boosting in!estment in the capital mar et. This situation is referred to as C Irrational situationD ,here opportunities for consumers and businesses act negligently is ,ide open once - obsessed pursuit of profit so the basic principles of the mar et economy system that is to be careful in their in!estment altogether ignored . In!estments made ,hen the mar et is in good condition does not depend on a certain physical goods and booms that occur exclusi!ely used by the Americans to in!est in the simplest of ,hich is to buy a home.

;hen capital mar ets are in good condition, the characters mentioned abo!e ,ere abusing their position by offering ne, loan products that are bac ed by the original loan certificates homebuyers. These situations gi!e rise to them multiplied through le!erage product li e this ,ithout thin ing that house prices are also li ely to fall. These people are not able to predict house prices may also fall. This is because o!erly obsessed pursuit of profit at the time of CIrrational situationC neglecting and ignoring the negati!e effects that may arise if the in!estment

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fails. 8ecome e!en ,orse ,hen the products are not only cease to le!erage on American International "roup &AI"' but the chain to !arious forms of non-stop product capitals based on user re4uirements of users is unlimited.

2.1 B i#out! $% the U.S Go&ern"ent ;hen the situation got out of hand and all in!estment ban s in the 9nited -tates are too greedy and racing to the pursuit of profit and the customer , the in!estment ban is open to the threat of default and this occurred in +arch 233) ,hen the loss cannot be accommodated by 8ear -tearns. The 9.-. go!ernments choose to rescue of 8ear -tearns in +arch and not 7ehman 8rothers because the first experiment to sa!e 8ear -tearns is to con!ince in!estors that the capital mar et is good, but rescue 8ear -tearns collapse only delay the process but could not stem the decline.

In mar et economies, it is not desirable to sa!e the ban s that are careless and nearly ban rupt on their o,n negligence, And in the context of 7ehman 8rothers, they become !ictims of their o,n carelessness lend indiscriminately. Different ,ith AI" companies, AI" is in critical condition from 7ehman 8rothers, AI" collapse ,ill bring the entire system of capital mar ets around the ,orld including Asia mar et crash for a long time because of AI"Cs larger customers and this ,ill result in se!ere chain effects. AI" assets amounted to 1 trillion dollars and 73 million customers are also at the same time deal ,ith many financial firms net,or . 8ased on these factors the 9.-. go!ernment had no choice but to sa!e AI". This action is seen against the principles of the mar et economy because of negligent should not be helped.

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The collapse of 7ehman 8rothers and +errill 7ynch as a reminder and a ,arning to the t,o other big ban s such as "oldman -achs and +organ -tanley, because basically the t,o ban s also carry out the same acti!ities such as 7ehman 8rothers , 8ear -tearns and +errill 7ynch that collapse earlier. 8an s are seen by mar et analysts only a matter of time for the fall.

;hat happens in the 9nited -tates has eroded in!estor confidence off that contributes to the stability of the dollar. The dollar is currently threatened by printing dollars, including figures released by the 9.-. .ederal :eser!e 8an is not bac ed by anything of !alue unless the needs of the ,orld trade in dollars. If the dollar falls, then the 9nited -tates cannot afford to buy goods from Asia, and this ,ill cause problems to the +alaysian economy, especially ,hen the !alue of the dollar plummets dramatically. 8ecause of that, the best brains in the 9nited -tates are trying to sa!e their in!estment ban s to ensure that the ,orld community is still confident in the American financial system, especially the dollar itself.

'.0 I"( ct to the Econo"ic St $i#it% o) M # %!i In 2331-2337, "D* gre, on a!erage by E.9B per annum. 6o,e!er, in the fourth 4uarter of 233), the +alaysia economy is feeling the pinch of the global economic crisis ,here the economic gro,th registered only 3.1 and declined by ).)B due to a slo,do,n in the external sector and drop in pri!ate in!estment from E.7B in the third 4uarter of 233). 8usiness sentiment declined significantly. Then, +alaysia bac to the phase of recession ,ith "D* is declined by 1.FB in 2339 ,hen exports fall by 27.)B in (anuary. This aroused ,idespread concerns in the global financial mar ets. The crisis becomes ,orse ,hen many financial assets suffering from losses and resulting negati!e impact on income including to +alaysia economic. -o, this paper

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,ill also examine real issues and ho, +alaysians ,ill be affected, and also discuss those most badly affected from different spectrums of society> small businesses, lo,-to-middle income groups, and the a!erage citi1en. An implication for +alaysian economy from> &1' -lo,do,n in "D* gro,th, &2' :eduction in trade, &G' :eduction in In!estment and &E' Impact on employment.

'.1 S#o*do*n in G+P ,ro*th -trictly spea ing, the second crisis to hit Asia ,as more a trade and gross domestic product &"D*' gro,th crisis rather than a financial crisis, because most Asian countries, including +alaysia, rebuilt their ban ing and financial sector after the Asian financial crisis to be more resilient and hence ,ere able to a!oid a financial meltdo,n &"oh H 7im, 2313'. +alaysia is no,n as one -outheast Asia countries ,hich ha!e a different characteristic in their economics structure. As a small open economy that integrated ,ith global mar et, +alaysia is not excluded from the financial turmoil. $conomy contracted sharply in +alaysia. +alaysia experienced minus ) percent of their "D* gro,th during 233), and it still continues in the first 4uarter of 2339. In this country, the pri!ate consumption and in!estment has also fallen because of the global financial crisis &-etya,an, 2311'.

The impact of the global economic crisis on +alaysia has been felt largely through a contraction in aggregate demand caused by a collapse in exports, either directly or indirectly. "D* lo,est gro,ths of 3.1B in the last 4uarter of 233), and the output declined ,ith F.2B and G.9B caused by se!ere slump in global trade respecti!ely in the first t,o 4uarters of 2339. This contraction has aggra!ated the already cooling +alaysian economy. #ot only did manufacturing

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slo, do,n substantially, but the o!erall "D* gro,th rate of +alaysia had fallen significantly belo, its targeted !ision 2323 rate for 2333-2337, ,hich ,as to achie!e a per capita income of 9-I15,E53 by 2323 &+ahani H :asiah, 2339'. Although the +alaysian economy ,as insulated from the direct effects of financial exposure because the ne, deri!ati!es ,ere not allo,ed into the country, the global financial crisis has cast doubt on the "o!ernmentDs plans to achie!e !ision 2323 due to a collapse in exports and a slo,do,n in foreign direct in!estment &.DI' &+ahani H :asiah, 2339'.

The bitter experience of the Asian financial crisis had already pro!ided the incenti!e for 8an #egara +alaysia &8#+' to regulate the financial sector ,ithout unduly affecting the stoc mar et. $xposure to foreign loans had been ept to a minimum and non-performing loans &#*7s' as a share of financial assets in the country had been one of the lo,est registered among Asian economies for 233) &;orld 8an , 233)'

'.2 -eduction in tr de The do,nturn in global trade ad!ersely affected +alaysian exports, gi!en +alaysiaDs high degree of integration ,ith the global economy. 7oo ing at international trade performance, export in JE 233) contracted by 1G.GB, reflecting the slo,ed do,n in +alaysiaDs ma=or export mar ets. This ,as, ho,e!er, offset by a 13.2B fall in import, and thus narro,ed the negati!e gro,th in trade. The 15.2B decline in exports in the first 4uarter of 2339 also dampened domestic demand, particularly fixed in!estment &6arun, -elim H -ubir, 2312'. It has been obser!ed that the current crisis has had an impact on de!eloping Asia through the contraction of trade and .DI inflo,s &(ames et al., 233)'.

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As +alaysia is a highly open economy, the impact of the global recession ,as felt strongly in the external trade-related sectors. The recession in the ad!anced economies started to impact the +alaysian economy in the fourth 4uarter of 233). $xports and manufacturing production declined by 7.EB and 11.1B, and pri!ate in!estment acti!ity ,as dampened by the deteriorating business conditions. 6o,e!er, the resilience of domestic demand, particularly pri!ate consumption, pro!ided support to the economy, pre!enting it from contracting in the fourth 4uarter of 233) &Annual :eport, 2339'.

The top fi!e export mar ets destinations for +alaysia> 9nited -tates, $uropean 9nion, A-$A# %ountries, #ortheast Asia and %hina ,hich collecti!ely contributed more than 75B of +alaysiaDs total exports in 233). :eduction of import demand by +alaysiaDs ma=or trading partners has direct impact on +alaysian exports and ,ould tend to slo, do,n export gro,th.

'.' -eduction in In&e!t"ent Another direct effect of the crisis is the li elihood of a slo,do,n in the pri!ate in!estment. The gro,th rate of pri!ate in!estment for most of the sectors had actually turned into negati!e in the fourth 4uarter of 233), except for sales of commercial !ehicles. This trend continued in 2339, all of the sectors ha!e experienced negati!e gro,th.

Decreasing demand in manufacturing products resulted by ,orsening global economic en!ironment also encourage many companies ad=usted their in!estment strategies. They ha!e to postpone some of their in!estment acti!ities and these ha!e gi!en significant impacts on pri!ate in!estment in capital goods and machinery for industry.

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The current crisis has slo,ed do,n o!erall in!estment acti!ities ,orld,ide. The tighter credit and sharp decline in company profits ha!e been the dri!ing force for the slo,do,n of in!estment flo,s. To analy1e the impact of the crisis on in!estment flo,, it is important to loo at the direction of changes for the inflo, and outflo, of in!estment. Inflo, form 9- and ;estern $urope decreased sharply and because of this global financial crisis, .DI inflo,s to +alaysia from the ,orld started falling from third 4uarter 233) to second 4uarter 2339.

"i!en the recession in 9- and other ma=or sources of in!estment, go!ernment has reali1ed the importance to see inflo,s from other sources. Kther than this, it should be reali1ed that +alaysia is facing critical challenges from other Asian countries such as %hina, Aietnam, Indonesia and Thailand as lo, cost production country. #e, strategy to create fa!orable in!estment climate is necessary to attract inflo, of in!estments.

'.4 I"( ct on e"(#o%"ent The global financial crisis has had negati!e effects on !arious industries and business acti!ities. The sharp decline in demand in both de!eloped and de!eloping economies ,ill lead to business failure and retrenchment. The most sectors facing this negati!e impact is the sectors that get in!ol!ed to external trade. +any firms ,ill reduce ,ages and employee benefits@ alternati!ely, they may also shorten ,or ing hours, implement !oluntary separation scheme and retrench ,or er to cut business cost. This problem rose mainly as the result of decreasing in demand in both internal and external mar et, ,hich further leads to the collapse of many industries in the economy, especially manufacturing sector, ser!ices and other sectors.

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According to data from ministry of 6uman :esource +alaysia, from Kctober 233) to +ay 2339, the number of permanent retrenchment ,as about 25, 12) ,or ers. According to sur!ey done by 8an #egara +alaysia on employment outloo in the manufacturing, ser!ices and construction sectors, 2E percent of the companies stated that they ,ould reduce number of =obs in 2339 &8an #egara +alaysia, 233)'.

Although ,e had experienced lo,er unemployment rate compared to that of the 9economy and other $uropean countries, the go!ernment is ta ing efforts to create ne, =obs in both pri!ate and public sector. Aarious programs ha!e been implemented including pro!iding training acti!ities, facilitate retrenched ,or ers to ta e on ne, =obs through placement programs, and also pro!ide incenti!e to employers ,ho recruit retrenched ,or ers. It is hope that all these policies ta en ,ill be able to cushion the negati!e impact on employment sector.

'.5 M # %!i econo"ic reco&er% nd (o#ic% re!(on!e! In response to the global crisis, the "o!ernment has announced se!eral of policy measures to reduce the ad!erse effects of global recession and to pre!ent the economy from slipping into recession. These measures focus on three broad areas, fiscal policy &t,o stimulus pac ages amount to :+F7 billion or 9.9B of "D*', easing of monetary policy &o!ernight policy rate ,as reduced by 153 basis points to 2.33B' and reinforced by comprehensi!e measures to ensure access to continuous of financing. Implementation of these measures ,ill not only pro!ide direct support to domestic acti!ities, but e4ually important ,ith the actions ha!e led to the reco!ery in sentiment of business and consumer. As a result, domestic demand recorded as lo,er decline of 2.2B in the second 4uarter of 2339, before reco!ering to record a positi!e gro,th of 1.7B in the

'+

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second half of the year. The most important is pri!ate consumption has impro!ed to record a gro,th of 3.5B in the second 4uarter, before strengthened to 1.7B in the fourth 4uarter.

.rom the external, stabili1ation follo,ed by a progressi!e reco!ery in the global economy since the middle of 2339 continued to support the +alaysia economy. In particular, the reco!ery of regional economies especially in %hina benefiting +alaysia ,ith exports to Asia and impro!ed in half of second year. +alaysiaCs exports to %hina reco!ered to recorded positi!e annual gro,th as early as August. The reco!ery in exports becomes more comprehensi!e by the end of year follo,ing the reco!ery exports to se!eral ad!anced economies. As a result, external demand contributed positi!ely to gro,th during the fourth 4uarter of 2339 and then the economy managed to achie!e reco!ery form a LAL &!-shaped' to 7.2B in 2313.

4.0 Conc#u!ion The +alaysian economy ,as affected by the global financial crisis ,hich set in during the third 4uarter of 233) and continued into the first 4uarter of 2339. 8ecause of global financial mar ets stability and the ad!anced countries do reco!ery in the economies, the rapid policy responses on both the fiscal and monetary fronts had an important role in sustaining domestic demand. ;ith economic fundamentals, strong financial system and the implementation of comprehensi!e policy support can sure +alaysia from slipping into a se!ere and prolonged period of negati!e gro,th. The strong economic and financial foundations pro!ided the basis for a rapid reco!ery. The strength and stability of the domestic financial system ensured that financing continued uninterrupted and enabled the pri!ate sector to obtain access to credit. Kther than that, ,ith the good pri!ate sector financial position, this facilitated a fast reco!ery in domestic demand once

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the global financial crisis ,as contained and the global economic and financial conditions stabili1ed. These fundamentals enhance the prospects for a stronger reco!ery going for,ard.

The 2339-2313 budgets its attempt to transform +alaysia into a high-income country. ;hile this is an excellent ob=ecti!e, ,hat is unclear are the strategies re4uired to achie!e it. -o, according to +ahani H Aishah &2339', the follo,ing steps that must be ta en to achie!e the 2323 !ision> 1. +aintain strong macroeconomic fundamentals and the excellent financial policies underta en by the "o!ernment and its ey agencies. 2. 8ring much greater balance bet,een external and domestic sources of demand by significantly increasing the latter. G. $nsure better targeting of stimulus and de!elopment pac ages.

E. +aintain stimulus and de!elopment pac ages to address and o!ercome the !ision 2323 "D* gro,th path deficit. 5. $nsure a central focus on human resource de!elopment policies, prioriti1ing the creation of a much larger pool of indigenous scientists and technologically s illed people. F. Deepen the policy shift to,ards a no,ledge-based economy. 7. -ignificantly increase research and de!elopment as a percentage of "D*. ). :e-orientate .DI policy to,ard technological upgrading

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Bi$#io,r (h%

Abdul A1i1 A,ang. Mrisis e onomi malaysia> *unca, impli asi dan lang ah penyelesaian. :etrie!ed from http>00,,,.icu.go!.my on 7 December 231G. Annual :eport &2339', $conomic De!elopments in 2339. Asian De!elopment 8an &233)', AD8 Annual :eport 233). Athu orala, *%,. &2313'. +alaysian $conomy in Three %rises. Working Papers in Trade and Development, Kctober 2313. 8an #egara +alaysia, Monthly Statistical Bulletin. 8an 8an 8an 8an #egara +alaysia. &233)'. Perkembangan http>00,,,.bnm.go!.my6 on E December 231G. #egara +alaysia. &2339'. Perkembangan http>00,,,.bnm.go!.my6 on E December 231G. Ekonomi. Ekonomi. :etrie!ed :etrie!ed from from

#egara, &2339'. Bank egara Malaysia !nnual "eport #$$%. :etrie!ed from http>00,,,.bnm.go!0.my on 5 December 231G. #egara, &2313'. Bank egara Malaysia !nnual "eport #$$&. :etrie!ed from http>00,,,.bnm.go!.my on 5 December 231G.

8artram, -+,. H 8odnar, "+. &2339'. #o place to hide> The global crisis in e4uity mar ets in 233)02339. (ournal o' (nternational Money and )inance 2)> 12EFN1292. %ampello, +., "raham. (:., H .6ar!ey, %:. &2313'. The real effects of financial constraints> $!idence from a financial crisis. *ournal o' )inancial Economics &+, E73NE)7. %armassi, (., "ros, D., H +icossi, -. &2339'. The "lobal .inancial %risis> %auses and %ures. *ournal o' -ommon Market Studies, .olume E7, 5> 977N99F. Department o' Statistics Malaysia, :etrie!ed from http>00,,,.statistics.go!.my6 on G December 231G. .aribor1 +oshirian. &2311'. The global financial crisis and the e!olution of mar ets, institutions and regulation. *ournal o' Banking / )inance G5> 532N511. .ra1iali Ismail. &2312'. %urrent $conomic De!elopments and %hallenges. 8an +alaysia, Penang SS0 -on'erence, 1) (uly 2312 #egara

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