Economists brush aside need for capital controls in Malaysia

Shamsiah Mohd Yunus, governor of Bank Negara Malaysia, speaks at the International Monetary Fund (IMF) and World Bank Group Annual Meetings in Nusa Dua, Bali, Indonesia, on Sunday, Oct. 14, 2018. Nor Shamsiah said countries that are faced with large cross-border flows should be allowed to use measures to manage the movement of capital. Photographer: SeongJoon Cho/Bloomberg

PETALING JAYA: Pundits have brushed aside the need for capital control measures in Malaysia, a delicate subject matter that resurfaced after the governor of Bank Negara reportedly said that volatile Asian economies should be allowed to use capital controls to pre-empt financial crises.

Datuk Nor Shamsiah Mohd Yunus’ (pic) statement raised concerns on whether capital controls may make their return to Malaysia, along the lines of the measures imposed during the 1998 Asian financial crisis.