Malaysia's ringgit crackdown deterring overseas investors

Kuala Lumpur

MALAYSIA'S crackdown on currency speculators has come at a cost. While it successfully reduced ringgit volatility, it is threatening to discourage overseas investors.

The central bank's steps to curb trading in offshore non-deliverable forwards last year has made it harder for global funds to hedge their exposure to Malaysia,according to Macquarie Bank Ltd.