1 Financial Market & Types of the selected country

The Malaysian financial system is structured into two major categories, Financial Institutions and
Financial Market. The Financial Institutions comprise Banking System and Non-bank Financial
Intermediaries. The Financial Market in Malaysia comprises four major markets namely: Money &
Foreign Exchange Market, Capital Market, Derivatives Market, and Offshore Market.

3 Introduction to Financial system of the country

The Malaysian financial system comprises a diversified range of institutions that serve the varied
and complex needs of the domestic economy. The banking industry can be divided into the
conventional financial and Islamic financial systems respectively. These two systems co-exist
and operate in parallel. he financial system plays a critical role in the economy. It enables
the financial intermediation process which facilitates the flow of funds between savers and
borrowers, thus ensuring that financial resources are allocated efficiently towards
promoting economic growth and development

At the heart of Malaysian banking is Bank Negara – the central bank of Malaysia. This is the apex of
the monetary and financial structure of the country. The principal objective of the bank is to promote
monetary and financial stability that is conducive to the sustainable growth of the Malaysian
economy.

The banking system, comprising commercial banks, investment banks, and Islamic banks, is the
main source of financing that supports economic activities in Malaysia. Banking institutions operate
through a network of more than 2,000 branches across the country.

Islamic finance in Malaysia continues to demonstrate dynamic growth with a comprehensive Islamic
financial system that is supported by robust regulatory, legal and syariah governance frameworks.
The Islamic financial system comprises four main components, namely Islamic banking, takaful and
retakaful, (Islamic Insurance and re-insurance); Islamic interbank money market and Islamic capital
market. Islamic banks accounted for 24.2% or RM69.5bil of the country’s total banking assets as of
end-July, up from 23.7% last year. Total assets grew at a faster rate of 20.6% between January and
July, compared with 15.4% in the same period last year.

4 Financial Instruments used in the Malaysian

 LFX's liberal rules and regulations facilitate the listing of a multitude of financial
instruments on the Exchange.

 Instruments will include but not limited to equities, investment funds, debt instruments
and insurance related instruments.
 These instruments can be based on either conventional or Islamic principles.

 Financial instruments based on Islamic principles will require endorsement by the Syariah
Council of their country of origin or from any internationally accepted Syariah Council.

 Financial instruments regardless of its nature may be denominated in any currency except
for Malaysian Ringgit.

 Generally, foreign exchange market

is a global market of currencies
trading. Other than for
 the trading of worldwide currencies,
this market also determines the rate
of foreign exchange, which
 is the conversion rate of a currency
into another currency. Foreign
exchange rate is also regarded as
 the value of a country’s currency in
relaon to other countries’ currency.
Standardized currencies
 are !oang and the factors
contribung to the !oang are the
demand, supply, and consumer
 con#dence.
 As for Malaysian perspecve on
foreign exchange market, like any
other country, foreign
 exchange can be traded in Malaysia
as long as it is traded with a legal
#nancial instuon. There are
 several legal, or another word,
approved instuons, that traders
can use as a medium to trade
 foreign exchange. The simplest way
to trade the foreign exchange in
Malaysia is by using one of the
 few approved instuons and also
by maintaining Islamic account.
Islamic account is accounts that
 complied with Islamic or shariah law
and is o(ered to both Muslims and
non-Muslims. Another point
 is that, overseas investment is
considered as foreign investment in
Malaysia.
 There is also a less probability that
people will get caught for trading
foreign exchange in
 Malaysia due to the law applied in
the country that will
compliments the needs of the
ruling
 government, which is in favour for
the government to take acon if
needed to and reserves to have
 control on what is happening in the
market. Nonetheless, authories
won’t be coming for anyone as
 long as people who trades do their
trading lawfully, unless there is a law
that had been broken by
 them, then acon would be taken
by the government. Therefore, to
avoid any suspicion in the
 business, traders that do trading in
Malaysia will trade with a brokerage
from licensed instuons,
 which will guarantee a safer and
lawful business.
 As for the rate of the foreign
exchange, just a year ago, at the end
of 2017, the Malaysian
 foreign exchange market has been
doing be0er compared to the prior
year. For example, ringgit
 strengthened and traded with range
between 4.05 and 4.09 against US
dollar. However, the current
 exchange rate as for 5 December
2018, 12.35 pm UTC, is RM 4.15 for
1 United States Dolla
 Generally, foreign exchange market
is a global market of currencies
trading. Other than for
 the trading of worldwide currencies,
this market also determines the rate
of foreign exchange, which
 is the conversion rate of a currency
into another currency. Foreign
exchange rate is also regarded as
 the value of a country’s currency in
relaon to other countries’ currency.
Standardized currencies
 are !oang and the factors
contribung to the !oang are the
demand, supply, and consumer
 con#dence.
 As for Malaysian perspecve on
foreign exchange market, like any
other country, foreign
 exchange can be traded in Malaysia
as long as it is traded with a legal
#nancial instuon. There are
 several legal, or another word,
approved instuons, that traders
can use as a medium to trade
 foreign exchange. The simplest way
to trade the foreign exchange in
Malaysia is by using one of the
 few approved instuons and also
by maintaining Islamic account.
Islamic account is accounts that
 complied with Islamic or shariah law
and is o(ered to both Muslims and
non-Muslims. Another point
 is that, overseas investment is
considered as foreign investment in
Malaysia.
 There is also a less probability that
people will get caught for trading
foreign exchange in
 Malaysia due to the law applied in
the country that will
compliments the needs of the
ruling
 government, which is in favour for
the government to take acon if
needed to and reserves to have
 control on what is happening in the
market. Nonetheless, authories
won’t be coming for anyone as
 long as people who trades do their
trading lawfully, unless there is a law
that had been broken by
 them, then acon would be taken
by the government. Therefore, to
avoid any suspicion in the
 business, traders that do trading in
Malaysia will trade with a brokerage
from licensed instuons,
 which will guarantee a safer and
lawful business.
 As for the rate of the foreign
exchange, just a year ago, at the end
of 2017, the Malaysian
 foreign exchange market has been
doing be0er compared to the prior
year. For example, ringgit
 strengthened and traded with range
between 4.05 and 4.09 against US
dollar. However, the current
 exchange rate as for 5 December
2018, 12.35 pm UTC, is RM 4.15 for
1 United States Dolla
 Generally, foreign exchange market
is a global market of currencies
trading. Other than for
 the trading of worldwide currencies,
this market also determines the rate
of foreign exchange, which
 is the conversion rate of a currency
into another currency. Foreign
exchange rate is also regarded as
 the value of a country’s currency in
relaon to other countries’ currency.
Standardized currencies
 are !oang and the factors
contribung to the !oang are the
demand, supply, and consumer
 con#dence.
 As for Malaysian perspecve on
foreign exchange market, like any
other country, foreign
 exchange can be traded in Malaysia
as long as it is traded with a legal
#nancial instuon. There are
 several legal, or another word,
approved instuons, that traders
can use as a medium to trade
 foreign exchange. The simplest way
to trade the foreign exchange in
Malaysia is by using one of the
 few approved instuons and also
by maintaining Islamic account.
Islamic account is accounts that
 complied with Islamic or shariah law
and is o(ered to both Muslims and
non-Muslims. Another point
 is that, overseas investment is
considered as foreign investment in
Malaysia.
 There is also a less probability that
people will get caught for trading
foreign exchange in
 Malaysia due to the law applied in
the country that will
compliments the needs of the
ruling
 government, which is in favour for
the government to take acon if
needed to and reserves to have
 control on what is happening in the
market. Nonetheless, authories
won’t be coming for anyone as
 long as people who trades do their
trading lawfully, unless there is a law
that had been broken by
 them, then acon would be taken
by the government. Therefore, to
avoid any suspicion in the
 business, traders that do trading in
Malaysia will trade with a brokerage
from licensed instuons,
 which will guarantee a safer and
lawful business.
 As for the rate of the foreign
exchange, just a year ago, at the end
of 2017, the Malaysian
 foreign exchange market has been
doing be0er compared to the prior
year. For example, ringgit
  strengthened and traded with range
between 4.05 and 4.09 against US
dollar. However, the current
 exchange rate as for 5 December
2018, 12.35 pm UTC, is RM 4.15 for
1 United States Dolla
5 Foreign Exchange Market in that country

Foreign Exchange Market: Malaysian Perspectives Generally, foreign exchange market is a

global market of currencies trading. Other than for the trading of worldwide currencies, this
market also determines the rate of foreign exchange, which is the conversion rate of a currency
into another currency. Foreign exchange rate is also regarded as the value of a currency in
relation to other currency. Standardized currencies are floating and the factors contributing to
the floating are the demand, supply, and consumer confidence. As for Malaysian perspective on
foreign exchange market, like any other country, foreign exchange can be traded in Malaysia as
long as it is traded with a legal financial institution. There are several legal, or another word,
approved institutions, that traders can use as a medium to trade foreign exchange. The simplest
way to trade the foreign exchange in Malaysia is using one of the few approved institutions and
also maintaining Islamic account. Islamic account is accounts that complied with Islamic or
shariah law and is offered to both Muslims and Another point is that, overseas investment is
considered as foreign investment in Malaysia. There is also a less probability that people will
get caught for trading foreign exchange in Malaysia due to the law applied in the country that
will compliments the needs of the ruling government, which is in favour for the government to
take action if needed to and reserves to have control on what is happening in the market.
Nonetheless, authorities be coming for anyone as long as people who trades do their trading
lawfully, unless there is a law that had been broken them, then action would be taken the
government. Therefore, to avoid any suspicion in the business, traders that do trading in
Malaysia will trade with a brokerage from licensed institutions, which will guarantee a safer and
lawful business.

6 Reasons for Financial Crises in the country malaysian

First, The currency crisis brought about the collapse of the stock market and asset prices. Then
it caused the exchange rate to fall further. The fall in the exchange rate and the value of stocks hit
businesses hard. On 2 July 1997, due to speculative attacks, Thailand was forced to float their
currency the Thai Bhat. This caused a rapid devaluation, which triggered a loss of confidence
throughout the Asian economies. Soon, other countries were forced to devalue as investors wanted
to get out of Asian currencies.

7 Investment and Investment patterns in the country

What are the prospects and future of Foreign Direct Investment (FDI) in Malaysia now? Malaysia is
undoubtedly a development success story. Throughout the post-independence period since 1957,
Malaysia has enjoyed rapid economic growth with rising per capita income and price stability. Rising
living standards, greater urbanization and access to health and education, and an improvement in the
distribution of income have accompanied economic growth. Malaysian performance has been
particularly remarkable after 1987 when the economy achieved above 7 per cent growth in seven
consecutive years reaching virtual full employment in 1995. Malaysia now aspires to become a fully
developed economy by 2020. This dramatic economic transformation has occurred against a
background of massive shifts in the world economy as a result of increasing internationalization of
production and trade. Foreign investment funds are returning to the market attracted by the corporate
restructuring news and a belief that South East Asian stocks are generally undervalued. But FDI remains
a big worry for the government and the last quarter figures cannot have helped. A recent survey by the
Japanese Chamber of Trade and Industry in Malaysia claimed that the country no longer enjoyed a
competitive advantage over its neighbors and that 22 per cent of Japanese companies operating in
Malaysia were contemplating moving. In Penang more multinationals in the electronic sectors are
planning to pull out of Malaysia in the next few months and relocate to China and Vietnam. So far these
have all been in factories producing labor-intensive products. The main reason given for relocation is
because of high labour costs. The purpose of this paper is to examine the Malaysian economic growth
with emphasize on saving and investment in the context of globalization of the world economy. The
main issues are: 1. Malaysian economic and Fiscal policy to stimulate economic growth. 2. The key policy
shifts to guide the study of globalization and developmental implications to overall growth trends. 3. The
role of foreign direct investment (FDI) and the implications of globalization for domestic employment
and real wages, and poverty and income inequality. From our analysis we found that economic
development in Malaysia .

8 Introduction to Banks

Banks in Malaysia

Malaysia's national bank is the Bank Negara Malaysia. A large number of various banks is available.
The major Malaysian commercial banks are, i.a. CIMB Bank, Maybank, Affin Bank and Alliance
Bank Berhad.

Several Islamic banks are represented as well, some of the major ones being Bank Islam Bhd. and
Bank Mualamat Bhd.
All larger foreign banks like HSBC, Deutsche Bank, Bank of America and JP Morgan Chase Bank
are represented in Malaysia offering expatriates the same service they are used to in their home
country.

Mainstream banking can be very slow in Malaysia and transactions and bill paying can mean waiting
in very long queues. Due to this reason many banks offer internet and telephone banking and it is
highly recommended to make use of these services.

Banking hours in Malaysia are slightly different in the individual states. Opening hours in the States
of Kedah, Kelantan and Terengganu are Sundays to Thursdays from approx. 9.30 a.m. to 4 p.m and
on Saturdays from 9.30 a.m. to 11.30 a.m. (some banks also from 11 a.m to 2 p.m.).

All other states have more or less the same opening hours but are also open on Fridays and
Saturdays. The Saturdays opening hours are from 9.30 a.m. to 11.30 a.m. (some banks also from 11
a.m to 2 p.m.), yet usually only on the 2nd and 4th Saturday of the month.

9 Banking System of Pakistan

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