Copyright © 1999 Nando Media Copyright © 1999 Associated Press
KUALA LUMPUR, Malaysia (January 24, 1999 9:58 a.m. EST http://www.nandotimes.com) - Malaysia's government will finalize a decision this week to ease some capital controls on foreign investors, a newspaper reported Sunday.
Prime Minister Mahathir Mohamad and other government officials are scheduled to meet Monday with 40 top international fund managers and potential investors, the Sun newspaper reported.
Talks are expected to include relaxing a 12-month lock-in period on foreign investment in the local stock market and bond market.
A government spokesman wasn't immediately available for comment.
Kuala Lumpur is seeking ways to attract foreign investors after it frightened them off by imposing capital controls Sept. 1. The Southeast Asian nation needs money to pull out of its worst recession in a decade.
The curbs prohibit foreigners from repatriating their equity investments for one year following the purchase date.
Last month, Malaysia's new finance minister, Daim Zainuddin, said the government was examining ways to scale back controls in order to attract more foreign investment.
Analysts have said the government must be careful to avoid a mass exodus of foreign funds when the 12-month period elapses at the end of August.
An "exit" tax is widely believed to be preferable to foreign investors over the stringent lock-in period.