The Impact of the Asian Crisis in MalaysiaWhen the Asian financial crisis hit Malaysia, the impact was traumatic. The stock market, currency and real estate market nearly collapsed. The crisis in Malaysia began with the development of the Malaysian currency. Due to the precipitous withdrawal of money from Malaysia, the value of the Malaysian ringgit began to fluctuate wildly. In July 1997, a few days after the devaluation of the Thai baht, the Malaysian ringgit was “attacked” by speculators. The overnight rate rose from less than 8% to more than 40%. This led to rating downgrades and a general sell-off in the stock and currency markets. From a value of 2.52 per US dollar in June 1997, it fell to 3.2 per US dollar in September 1997, just three months after the start of the crisis. It reached a new low of 4.5 ringgits to the US dollar in January 1998 (Tourres.2003,78,193). This has seriously exacerbated the decline of the Malaysian stock market, which was already on a downward trend before the crisis, as the depreciation of the Ringgit led to panic selling by foreign investors. The huge fall of the Ringgit and the stock market has had devastating consequences. impact on highly indebted companies, particularly those that had taken out loans abroad. The sudden fall in the stock market and the specter of many highly indebted companies, unable even to repay loan interest, then created pressure on bank liquidity. This liquidity crisis led to a general loss of confidence in the Malaysian economy and ultimately precipitated a massive contraction in the Malaysian economy, from growth of 7.3% in 1997 to a low of -7.4%. in 1998. Per capita income increased from RM9.1 billion. to RM8.2 billion during the same period, while the paper economy and financial sector were in the midst of the foreign direct economy, as well as the prompt and careful measures introduced by the Malaysian government during the crisis . Growth then settled at a slower but more sustainable pace. The massive current account deficit has turned into a fairly substantial surplus. Banks were better capitalized and NPLs were carried out in an orderly manner. Small banks were bought by larger ones. A large number of joint stock companies were unable to regulate their financial affairs and were delisted. Compared to the 1997 current account, in 2005 Malaysia was estimated to have a surplus of $14.06 billion. However, asset values ​​have not returned to their pre-crisis peaks. In 2005, the last crisis measures were removed when the ringgit was removed from the fixed exchange rate system. But unlike the pre-crisis era, it was not a free float, but a controlled float, like the Singapore dollar..