Malaysia Financial Crisis 2008

The financial market experienced the largest percentage drop in the history of dow jones industrial average during the week of october 6 to october 10.

Malaysia financial crisis 2008. The 2008 financial crisis is the worst economic disaster since the great depression of 1929. Malaysia and some asean countries will be able to overcome the global financial crisis because their economies are resilient supported by pro growth and proactive policies a visiting don said. The debt crisis that accompanied the great recession had a lot to do with the burden of home mortgages that were issued to people who simply could not pay them back and bundled into securities called collateralized debt obligations cdo and sold to investors with an illusory a credit rating. It had inflicted profound damage on us financial system and economy.

Asian financial crisis one of the most significant events in the history of the malaysian economy was the asian financial crisis which caused malaysia s gdp to shrink from us 100 8 billion in 1996 to us 72 2 billion in 1998. Malaysia has learned from the asean financial crisis in 1997 1998 and much stronger position when entered the global financial crisis in 2008. Asian financial crisis and recovery further information. Besides during the economic crisis in 2008 the bank system has a sufficient capital to recovery from the crisis and malaysian authorities had limited exposure to foreign bank borrowing.

The domestic economy experienced the full impact of the global. The deterioration in global economic conditions and the major correction in commodity prices in the second half of 2008 saw malaysia s gdp moderate to 0 1 in the final quarter of 2008. Cyclical by nature malaysia last faced a recession during the global financial crisis of 2008 with the asian financial crisis 1997 1998 and the downturn in commodities prices in the mid 1980s the country s other two recessions of the post independence era. From october 1 the s p fell 251 points losing 21 6 of its value in just nine days time.