ABSTRACT
The last three decades of the 20th century witnessed tremendous economic growth achieved by nations of Asia. In 1995, the economic management practiced by Malaysia was referred as the best model of economic development among developing countries. This miracle was a perfect mirage until the financial crisis hit Asia in 1997. On 2 July 1997, the Thai Central Bank abandoned all efforts to defend the baht peg with the US dollar from speculative attack that started in May 1997. Consequently, it triggered global financial instability with stock market meltdown and market sentiments turned against the whole region.
