Malaysias Alternative Strategy Essay examples - 1946 Words

[MALAYSIA’S ALTERNATIVE STRATEGY] Introduction The 1997 Asian Financial Crisis drew attention to just how fragile our global economic system can become either when overexposed to foreign market intervention, or when underperformance remains unchecked. Prior to June 1997, The Republic of Korea encountered issues as 10 of its 30 top performing chaebol (Conglomerate) collapsed underneath debt which far exceeded their respective equities. Korean steel production giant Hanbo faced additional stress after amassing a $4.39 billion debt for one new steel mill. Kia Motors fell due to accruing almost $2.1 billion in loans that was awarded on the basis of â€Å"need,† as opposed to independent judgment of credit and cash flow determined by the†¦show more content†¦On 2 July 1997 Thailand had $2,850 billion remaining in international reserves and could no longer protect the baht. That day Marakanond decided to float the baht. Asian Financial Crisis – Neighboring Countries Neighbor South Korea dealt with economic uncertainty leading up to the 1997 currency crisis which plagued Thailand. South Korean chaebols or conglomerates were recording record debt levels between 1996 and 1997. Banking policies enacted by President, or Dictator, Park during the late 80’s constructed an economic environment whereby loans to chaebols were issued on the basis of company need, as opposed to individual judgment on part of the loan issuing authority. In more succinct terms, nationalized banks issues loans to chaebols without verifying whether the company could pay the loan bank, or whether the interest rates were reasonable, or even whether the company’s venture had enough collateral to back it up. In essence, chaebols were tasked with repaying loans that they might not have the appropriate level of capital for. Therefore, on the eve of the Asian Financial Crisis, chaebols such as Hanbo Steel, and others, were closing their doors due to debt burdens incurred without a proper foundation for capital generation. Neighbors to the South, Indonesia and others, suffered from currency, stock, and equity collapses, rather than tangible asset collapse. The currencies of Indonesia, Singapore, Hong Kong, and others, took massive hits fromShow MoreRelatedKfc Executive Summary Introduction701 Words   |  3 Pageslarge number of them have become more health conscious. This has opened the door for KFC’s main competitors, such as McDonald’s, to come out with a new range of healthier products, allowing them to mount a greater challenge on KFC Malaysia’s current position as Malaysia’s leading fast food operator. As a response to the advancement made by KFC’s competitors in providing healthier fast food, KFC are to introduce a new set of healthier products that would be mainly targeted at health conscious peopleRead MoreKfc Marketing Research3765 Words   |  16 Pageslarge number of them have become more health conscious. This has opened the door for KFC’s main competitors, such as McDonald’s, to come out with a new range of healthier products, allowing them to mount a greater challenge on KFC Malaysia’s current position as Malaysia’s leading fast food operator. As a response to the advancement made by KFC’s competitors in providing healthier fast food, KFC are to introduce a new set of healthier products that would be mainly targeted at health conscious peopleRead MoreThe Harvest Box Is An Australian Organic Foods Retailer1649 Words   |  7 Pagesreflected in a mere Current Account Balance of A$262M (CEIC, 2016). 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