Financial crisis of 1997/1998 in Malaysia: causes, impacts and recovery plans

A speculative attack was the cause for the Asian financial crisis in 1997, in which Malaysia itself was caught in this crisis. Asian countries suffered heavily as a result of the financial crisis in which none of them managed to completely evade from the crisis. Later, severe economic problemsa number of the multinational companies and enterprises had gone bankrupt and this increased the unemployment rate. In order to overcome this problem, the Malaysian government had taken several steps which involved the usage of internal and external resources in order to overcome this financial crisis and bring the economy back to its normal value. The financial crisis was worsened due to wrong policy responses, anti-market rhetoric, panic, and excessive risk-taking which damaged the balance sheets of banks and corporate sectors. The financial crisis affected the economy, society and politics in Malaysia, which made it hard to recover from the slump in just a few years. A few recovery plans were implemented by the Malaysian governmen