Abstracts » Business, international

Lords of the ringgit

Article Abstract:

Malaysia's central bank acted quickly to protect the ringgit following news of a widening current-account deficit, up from M$11 billion in 1994 to M$18.1 billion in 1995. The bankers spent $1 billion to buy ringgit, keeping the exchange rate near M$2.55 to the dollar, and the govt raised a key interest rates from 6.1% to 6.8% in four weeks. Imports in services and repatriated profits are to blame for the deficit, which should ease soon. The economy overall remains strong, with an 8.5% growth target for 1995.

Prices and rates, Foreign exchange, Foreign exchange rates, Gross national product

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Smooth operator

Article Abstract:

Malaysian automobile magnate Datuk Yahaya Ahmad bought state-owned Hicom Holdings, which owns Malaysia's national car maker, Proton, for $1.7 billion, over 10% more than Hicom's pre-sale announcement value. Yahaya says shareholders in his companies and Hicom will benefit. However, Hicom will have to pay $1.2 billion for the Diversified Resources' unit and Gadek subsidiary, it acquired in the deal. When the deal was announced, Hicom and Gadek stock dropped, while DRB rose slightly.

Mergers, acquisitions and divestments, Acquisitions and mergers, Hicom Holdings Bhd, Mega Consolidated

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Thus spake Mahathir: Premier's comments raise questions about his advisers

Article Abstract:

Premier Mahathir Mohamad of Malaysia reversed some key policies when the ringgit sank to its lowest level against the US dollar for 24 years, but there are questions as to why the situation was allowed to deteriorate before such actions. Mahathir has always spoken his mind and has made relentless attacks on American financier George Soros, who he claims has been undermining currencies. There are concerns that Mahathir is refusing to acknowledge the economic realities.

Securities and Commodity Exchanges, Security and commodity exchanges, Securities Exchanges, Political activity, Stock-exchange, Stock exchanges, Exchanges, Mahathir Mohamad

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