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ID number:478322
Evaluation:
Published: 22.04.2004.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

CONCLUSION
The economic policies that the government implemented did improve the country's economic growth. In tandem with the economic growth the income per-capita increased and directly improved the standard living of the Malaysian. However the government's plan was thrown off course with the regional financial crisis in 1997 has thrown the government's plan off course. Nevertheless the government acted immediately to combat the crisis with various measures.
However the potential danger that the Malaysian economy faced is external debts. The economy growth achieved by the nation after the crisis was largely due to the expansionary fiscal policy, which resulted in deficit budget. The deficit was financed by borrowings. If the government continues to borrow money and pump prime, then there might be a possibility that Malaysia will accumulate greater external debts. Fortunately thus far its borrowing are mostly from local sources and only as a small portion from foreign sources.

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