In the 1990s, the governments of Thailand, Indonesia, South Korea, and the Philippines gradually abandoned control over the domestic movement of capital in order to attract foreign direct investment.
Malaysia maintained capital controls and thus avoided the worst of the crisis. Naturally, Malaysia was criticized by the foreign investors for interfering with “the market.”
Intent on creating a stable money environment, they raised domestic interest rates and linked their national currencies to the value of the US dollar. The rush of international investors into these countries resulted in soaring stock and real estate markets all over Southeast Asia.