WASHINGTON, D.C., March 11, 1999 --- The International Finance Corporation intends to reinstate Malaysia to its Investable indexes for emerging stock markets on November 1, barring any significant changes in current circumstances regarding foreign investor access to the Malaysian stock market.
IFC removed Malaysia from its Investable index after the imposition of capital controls last September. The controls and lack of clarity on what they meant to foreign investors constituted a serious constraint on foreign investment, making Malaysia ineligible for the Investable index.
In light of Malaysia's gradual repeal of capital controls and the substitution of a declining scale of exit taxes and capital gains taxes, IFC consulted with its Indexes Advisory Panel and decided that Malaysia would once again qualify as an investable market if these measures are retained.
If there is no erosion of the current measures, Malaysia would be reintegrated into the Investable Composite and Investable Asia indexes. The IFC Investable indexes measure returns on stocks that are available to foreign investors.
The head of IFC's Emerging Market Data Base unit, Peter Wall, also announced that the weighting for Taiwan, China in the investable indexes would be increased in line with a more liberal foreign investment regime in the Taiwanese stock market. The foreign limits, which will be raised from 30 percent to 50 percent, will be reflected in the IFC indexes as of April 1.
IFC, part of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets and providing technical assistance and advice to governments and businesses
