TITLE : BANK NEGARA MALAYSIA: ANNUAL REPORT 1998.

 
 
1.	The Real Economy		1
	
		Overview		1
		Box I	: The Asian Crisis: A Survey of Views on the Causes
				and Policy Response		11
		Sectoral Review			17
		Box	II	:	The	1985 and 1998 Recessions: A	Comparison		31		
		Domestic Demand Conditions		39
		External Sector					43
		Box IIl: Exchange Control Measures as a Policy Option		61
		Inflation			72
		Labour Market Developments		75
 
2.	Monetary Developments and Fiscal Development		81
		
		Monetary Developments		81
		Monetary Policy in 1998		90
		Fiscal Operations and Policy		94
 
3.	Outlook and Policy		107
		International Environment 		107
		Box IV	: Developments in the Regional Countries		111
		Box V	: Euro 1999: Implications for the Malaysian Economy 120
		Malaysian Economy in 1999		125
		Monetary Policy in 1999			131
		
 
4.	The Financial Sector		135
		Sources and Uses of Funds of the Financial System		135
		Management of the Banking System		137
		Box Vl	: Restucturing the Banking Sector		143
		Performance of Banking System		149
		Box Vll	: Managing the Y2K Challenges in the Malaysian Banking 			
				  Industry		156
		Islamic Banking			162
		Other Financial Institutions		164
		Financial Markets		169
 
5.	External Relations		187
 
6.	Organisation and Personnel		197
 
	Annual Accounts			201	
		Balance Sheet as at 31 December 1998		206
 
	Annex		211