Countries and Regions

	Table of Contents
p. 16 of 18 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Malaysia

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VII. ADB's Operational Program

59. Until the onset of the crisis in mid-1997, the ADB’s assistance program was modest, reflecting the country's sharply reduced requirements considering its rapid development performance. However, following the currency turmoil, the Government is adjusting its borrowing strategy from multilateral finance institutions. The Government requested a Skills Development Program Loan (SDPL) for $300 million in early 1998. Accordingly, the proposal was processed under the existing Country Operational Strategy for Malaysia. Simultaneously with the processing of the SDPL, technical assistance for preparing the financial sector reform strategy (FSRS TA) was also processed on Government’s request. It was envisaged that FSRS TA would facilitate policy dialogue on the financial sector issues that are central to the crisis. After the approval of FSRS TA by the Board in January 1999, the Government withdrew its request for FSRS TA. Subsequently, the Government put on hold ADB’s requests to field economic missions to prepare the annual economic review and for the pre-appraisal mission for SDPL.

60. The provision of further assistance to Malaysia will be determined on the basis of the formulation of an assistance program to be determined by the Government and ADB after they agree on ADB’s role in assisting Malaysia during the crisis.

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