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PacNet #35 – Malaysia Taking Bitter Pills to Foster Growth

On Aug. 6, after months of debate and calculation, the Executive Council of the National Economic Action Council headed by Malaysia’s Prime Minister Mahathir Mohamad (which is in charge of the crisis management of the economy) made a tough decision. The five members unanimously decided to adopt the Chinese model of currency convertibility and instructed the country’s central bank to make all the necessary arrangements.