[The Straits Times] Malaysian Banks Sound the Alarm — But No One’s Listening

Without bailouts, Malaysian bank failures don’t seem to be stopping. Does UMNO have an answer? 

Since June 1998, Malaysian banks have suffered from liquidity problems stemming primarily from Non-Performing Loans. Public confidence in banking has fallen significantly, and the risk of a devastating bank run is high. 

Strangely, however, Finance Minister Anwar Ibrahim seems adamantly against seeking help from the IMF. With Malaysia’s neighbours partaking in billions in essential loans, Malaysian banks feel betrayed by the Finance Minister's refusal on grounds such as ‘sovereignty’. Banks and economists look on for UMNO and Anwar's response to this crisis.


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