[ Laman Ehwal Semasa ReformIS ]
Date: 16 Aug 1999
Time: 03:26:54
Remote User: -
Malaysia says ringgit peg will remain
KUALA LUMPUR, Aug 16 (AFP) - Malaysia on Monday said it would not reduce the existing exit levy on stock market profits or remove the 3.80 ringgit peg to the dollar.
Mustapa Mohamad, Second Finance Minister, told reporters these policies would be maintained as they have brought about "economic stabilisation."
Under existing rules, the exit levy on profits made from the stock market repatriated within one year is 30 percent. This falls to 10 percent after the lapse of one year.
"We expect these policies to continue. There is no need to revamp or review policies which have proven to be very successful in getting us out of this (financial) predicament," he added.
The fixed exchange rate and one-year lock-in period for foreign holders of stocks and bonds were part of capital controls imposed last September after the economy plunged into its first recession in 13 years.