Malaysia : Social and Structural Review Update

Abstract

A Structural Policy Review (SPR) for
 Malaysia, prepared in late 1998 and early 1999, was shared
 with the government of Malaysia in February 1999 and
 subsequently appeared in gray cover in June 1999 (report no.
 18647). The report covered developments in the following six
 areas: 1) maintaining sound macroeconomic policies and
 resuming growth; 2) managing the social impact of the
 crisis; 3) financial sector restructuring; 4) corporate
 restructuring; 5) strengthening corporate governance and
 competitiveness; and 6) strengthening public sector
 management and performance. The SPR examined these short and
 medium term structural issues as they came to light during
 the first 14 months of the crisis. At the time the report
 was written the government had formulated responses to the
 crisis across a wide variety of policy instruments. Since
 then, however, events have evolved. The objective of this
 report is to review the progress made over the last year on
 structural issues in each of the six areas covered in the
 original SPR and place these in the context of what is
 happening a) in other countries in the region managing the
 same crisis and b) in the discussions of the new
 international financial architecture. This perspective is
 used to assess the quality of the current recovery and
 structural basis for sustained medium term growth and
 poverty reduction.