Part 8/11:

After the crisis subsided, Asian economies like South Korea and Indonesia worked diligently to strengthen their financial sectors and develop mechanisms to mitigate future shocks. Malaysia, however, retained its cautious approach, maintaining capital controls and other protective measures, which some critics say may have limited opportunities for external investment and reform.

Despite disagreements over economic policy, there is broad recognition that Malaysia’s refusal of IMF loans and its decision to impose capital controls helped preserve its sovereignty during a turbulent period. Yet, it also meant missing opportunities to overhaul failing industries and implement comprehensive reforms that could have spurred more sustainable growth.