Large foreign holdings of bonds make Malaysia highly vulnerable to capital flight, while weak fiscal position and political turmoil add to risk.
Bangkok Post Pathom Sangwongwanich
A perfect storm is forming around the Malaysian ringgit, as its value remains at risk from a protracted economic slump aggravated by a domestic political scandal and the prospect of rising US interest rates.
But the distress does not stop there, as a currency sell-off in Malaysia could have a contagious financial spillover on neighbouring economies, sparking capital outflows and compounding financial volatility.
The rest of the article at http://www.bangkokpost.com/business/news/1180901/ringgit-rout.