Malaysia Financial Crisis 2008

The ringgit was also not spared and came under severe selling pressure.

Malaysia financial crisis 2008. Days after 2008 financial crisis in 2008 a global economic crisis struck with many countries experiencing the full brunt of it s effects. This study is an attempt to explore the relative performance of shariah and non shariah portfolios at bursa malaysia during the global financial crisis from 2007 through 2008. The financial crisis of 2007 2008 also known as the global financial crisis gfc was a severe worldwide financial crisis excessive risk taking by banks combined with the bursting of the united states housing bubble caused the values of securities tied to u s. Financial crisis at 18 5.

Throughout the period of the global financial crisis underpinned by a strong financial sector and negligible exposure to subprime related assets and affected counterparties. Commodity prices in the second half of 2008 saw malaysia s gdp moderate to 0 1 in the final quarter of 2008. Nevertheless given the weak business environment and an expected rise in unemployment the banking system s non. Us 2 5 trillion of government debt and troubled private assets were purchased by the federal reserve and european central bank resulting in the largest liquidity injection into the credit market and the largest monetary policy action in world history.

Bank negara malaysia s the central bank of malaysia immediate response was to intervene in the foreign exchange market to uphold the value of the. Following the 2008 09 global financial crisis that especially hit the united states and europe many hundreds of billions of dollars rushed to emerging markets including malaysia in search of. Since then the ratio has declined to 2 6 in 2008. Bank negara malaysia also managed the financial sector well following the bitter experience of the asian financial crisis and hence non performing loans as a share of total loans fell to 2 2 in 2008 and remained at roughly that level in the first two quarters of 2009.

Real estate to plummet damaging financial institutions globally culminating with the bankruptcy of lehman brothers on september. 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.