Malaysian capital transfer limits are possible

Significance

But the ringgit has fallen by more than one-third from its peak in May 2013. Moves by Bank Negara, the central bank, to support the currency and most recently to clamp down on offshore trading have had little impact on easing the selling pressure, raising the odds on more aggressive action.

Impacts

• Investor confidence could suffer long-term harm.
• A corporate repayments crisis could occur, raising the spectre of possible credit downgrades.
• The prime minister's position could be in jeopardy if incomes are affected.