Defiance, Recovery, and Recognition: Malaysia in the Asian Financial Crisis
The Asian Financial Crisis of 1997–1998 marked a turning point in the political economy of East and Southeast Asia, exposing deep vulnerabilities in rapidly globalizing financial systems and challenging dominant paradigms of economic governance. Among the crisis-affected nations, Malaysia’s response stands out as a striking deviation from the policy prescriptions advocated by the International Monetary Fund (IMF). While neighboring economies such as Thailand, Indonesia, and South Korea accepted IMF assistance and implemented orthodox stabilization programs rooted in neoliberal principles, Malaysia rejected external intervention and pursued an alternative strategy centered on capital controls and domestic policy autonomy. This divergence not only shaped Malaysia’s economic recovery but also contributed to broader debates on the limits of neoliberal orthodoxy and the role of the state in crisis management. Prior to the crisis, the region had been widely celebrated for the so-called “Eas...