In our article last week, we wrote about the chronic underperformance of Bursa Malaysia, which is, in turn, a reflection of the country’s underlying economic fundamentals. This all began after the Asian financial crisis (AFC), when Malaysia implemented the currency peg (to the US dollar) and capital control measures. We provided irrefutable data as evidence of how this strategy drastically impacted subsequent investments by both foreigners and Malaysians. We showed the sharp increase in capital outflows by domestic corporates, institutions and individuals after control measures were relaxed.