The impact of selective exchange control on manufacturing sectors / Sophia Madian

Malaysia introduced the selective exchange control as part ofthe measures to face the financial and economic crisis. As part ofthe measures the ringgit has been fixed against the USS at US$ = RM3.8O and selective capital control to stem capital outflow. Manufacturing sector is the main contributor to the GDP growth in Malaysia , accounted for 35 per cent of Gross Domestic Product(in 1996). This project paper will focus on the
impact ofselective exchange control on Foreign Direct Investment in Malaysia. It will also look on how the control affect the volume of export ofthe manufacturing sector. Results show that the Selective exchange control have little impact on the foreign investment and volume of export.