LESSONS FROM MALAYSIAN TRADE AND DEVELOPMENT EXPERIENCES, 1960–99

Like other high performing Asian economies (HPAEs) in South East Asia, Malaysia experienced negative growth from 1997–1999. This setback in economic growth can be attributed to internal as well as external factors. Inter alia, relaxed foreign currency regulations, financial system reforms and stability, together with speculation resulted in one of the most severe recessions in Malaysia's modern history. This, in turn, revived the domino and the house of cards effect in Malaysia and other HPAEs in South East Asia. To be back on track on the secular trend of the last four decades, Malaysia has adopted bold, continuous and pragmatic measures. Cooperation with other members of the HPAEs in terms of trade and finance is seen to be a long run conduit for better regional growth and development.