By Anil Netto,
Najib’s recent announcement that a 100-storey tower will be built in the capital by a government investment fund comes as global liquidity is flooding the region and raises concerns the project could represent the front end of a coming new crisis.
Najib unveiled the plans for the tower, to be known as the Warisan Merdeka, or Independence Heritage, on 15 October. Two weeks later, Asian Development Bank chief Huruhiko Kuroda warned of two risks facing developing Asian economies like Malaysia: that the recovery in developed economies could be elusive and speculative capital inflows into developing economies could prove volatile.
The United States Federal Reserve is expected to announce a second round of quantitative easing this week, which could prompt the flow of even more speculative capital in search of higher yields into Asia’s developing economies.
Full story in Asia Times Online
Najib’s recent announcement that a 100-storey tower will be built in the capital by a government investment fund comes as global liquidity is flooding the region and raises concerns the project could represent the front end of a coming new crisis.
Najib unveiled the plans for the tower, to be known as the Warisan Merdeka, or Independence Heritage, on 15 October. Two weeks later, Asian Development Bank chief Huruhiko Kuroda warned of two risks facing developing Asian economies like Malaysia: that the recovery in developed economies could be elusive and speculative capital inflows into developing economies could prove volatile.
The United States Federal Reserve is expected to announce a second round of quantitative easing this week, which could prompt the flow of even more speculative capital in search of higher yields into Asia’s developing economies.
Full story in Asia Times Online
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