Malaysia hopes to lure foreign investment; but plan could hit obstacle with exit tax to discourage speculators

Article Abstract:

Malaysian Prime Minister Mahathir Mohamad has introduced an exit tax that is intended to act as a substitute for the previous law mandating investors in Malaysian shares to leave their money behind for a year. The exit tax is aimed at discouraging short-term portfolio flows at the time when Malaysia is hoping for more foreign investors to invest in its stock market. Institutional money managers claim that they will have no problem with the exit tax. On the other hand, the exit tax would be a nightmare for mutual funds.

Tax Law, Public Finance Activities, Malaysia, Taxes, Taxation, Stock-exchange, Stock exchanges, Speculation, Mahathir Mohamad, Tax policy

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Korea preferred-share holders await payoff; bombed-out stock could be focus when bearish market turns around

Article Abstract:

Investors in the Korean market would do well to put their money in preferred shares, which offer a dividend premium to offset a lack of voting rights. Preferred shares, at their current low levels, are seen to bring excellent returns to investors who can wait for the bearish Korean stock market to post a reversal. Investors who buy them have to wait awhile, but will be glad to have done so once the market turns around and these securities become the focus of the market's rally.

South Korea, Securities, Preferred stocks

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Funds make subtle shift

Article Abstract:

The sudden valuation of Japanese yen during the first week of Oct 1998 generated substantial shift on the volume of stocks, rendering a slight increase on Asian shares. The trend, which triggered a considerable drop in the value of US and European stocks, compelled a number of fund managers to divert investments to Asia. The strong yen further caused interest rates in Asia to level off, while increasing the fair value of regional stocks.

Economic aspects, Japan, International aspects, Interest rates, Asia, Currency devaluation, Devaluation (Currency), Yen (Japan)

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