□ Foreign direct investment has improved from RM100 million in July to RM4.7 billion in September 1998 following approval of two large chemical projects;
□ The KLSE has stabilised - hovering ＞ 500 level. It was 260 at one point. As at 26 November 1998, the KLSE composite index had risen by 64.6% since the lowest point;
□ Government spending has been reduced considerably - in the first nine months the government has spent only 25% of its budget or RM9 billion;
□ The sale of car - passenger cars - has improved slightly; sale of houses has also improved slightly. In fact, the government has declared two days ago to give discounts on house sale; [By end of December 1998 the Government campaign to sell houses at discounted price has been rated successful].
□ Growth in the manufacturing sector has declined considerably. This is alarming as 35% of the GDP comes from this sector.
Conclusion
A few conclusions could be made on the basis of the figures available to the public. It is safe to say that we see signs of modest recovery. With the end to street demonstrations in some parts of Kuala Lumpur, investors' confidence has returned slowly. With the Government pumping more money into the financial system largely from 12 foreign banks in Malaysia amounting to US $1.35 billion, Yen 74 billion from Nomura Securities and Sumitomo Bank Ltd, US $300 million from the World Bank, the rate of recovery is likely to be enhanced in the short term. Malaysia is also seeking US $5 billion from the Miyazawa fund.
