Malaysia : 2019 Article IV consultation-press release ; staff report ; and statement by the Executive Director for Malaysia.

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Bibliographic Details
Imprint:Washington, D.C. : International Monetary Fund, 2019.
©2019
Description:1 online resource (100 pages)
Language:English
Series:IMF Country Report ; No. 19/71
IMF country report ; no. 19/71.
Subject:
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12509973
Hidden Bibliographic Details
Other authors / contributors:International Monetary Fund, issuing body.
ISBN:1498302416
9781498302418
9781498302418
Notes:Print version record.
Summary:This Selected Issues paper analyzes saving to understand its history and identify its drivers in Malaysia. IMF analysis suggests that Malaysia's current account surplus is higher than warranted by medium-term fundamentals and desired policies. The changes in the corporate saving rate almost entirely reflect the changes within each group of firms of similar size or age. Leveraging firm-level data for listed firms, the paper focuses on the contribution to the current account surplus of private nonfinancial corporations. The trend analysis indicates a high dependence of listed firms in Malaysia on internal funds (savings) to finance their investments or, equivalently, lower dependence on external funds. The results suggest that relaxing firms' external financing constraints and lifting productivity growth could help encourage investment and reduce excess corporate saving. The regression results show that the transaction cost and precautionary saving motives, as well as their interaction with external financing dependence, could play an important role in explaining corporate net saving.
Other form:Print Version: Malaysia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malaysia. Washington, D.C. : International Monetary Fund, 2019
Standard no.:10.5089/9781498302418.002

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