Economic Update  [ PDF ] 4Q11 BOP – Financial account returns to the black - by Heng Guie LEE

Malaysia’s balance of payments position weakened further in 4Q11, due to a smaller current account surplus amid a turnaround of the financial account. But volatility of capital flows is in the offing given lingering concerns over sovereign debt in the advanced economies.The much controversial measurement of capital flight - “Errors & Omissions (E&O)” recorded a net outflow of RM15.9bn in 4Q11, partly due to foreign exchange revaluation loss.