What has changed? Is globalisation and re-colonisation now acceptable? The money has run out. That is what is changed. The corruption and judicial manipulation have created an unpalatable business arena. Only boxers with an appetite for opponent's ears are willing to come to Malaysia. In this case there are hopes Malaysian money will be taken out of the country legally. That would be a novelty.

Globalisation is still a dirty word. Malaysian businesses will not be allowed to fall into the hands of foreigners. What is different is the willingness to allow greater injection of foreign money into the Malaysian economy. Money is welcome. A minor caution is in order; one should not expect total recovery of investment.

The amount of foreign investment allowed in any given enterprise has been increased to just under 50%. For that much you may get a director's seat. Don't expect much else. Remember, this is Malaysia, where things are done according to a nebulous Asiatic code which no one else is allowed to understand. Any resemblance to accustomed business standards on the major exchanges of the world is a carefully designed theatrical performance, known locally as a 'sandiwara.' Balance sheets have the same code. Watching the KLCI reminds one of a magic show, where the magician levitates a pretty girl. There is no apparent means of support. She defies gravity.

Between July 17 and August 17 the average advances were 191, while the declining stocks averaged 340. There were only seven days out of the 24 in which the advancers outnumbered the decliners. The KLCI declined from 843 to 820 [-2.7%]. But the decline in the general market as much worse, many stocks now trading at half or less from their annual highs. If the 100 stocks of the KLCI had declined with the general market, the KLCI would be around 500 or less. It is thus a poor indicator of the broader Malaysian economy and stock market sentiment.

In Malaysia all rules are subject to change without notice. This includes the official exchange rate. After your money is transferred to Malaysia, you will expect to follow the status of your investment. Forget it. You might expect an audit by independent and competent accountants. It isn't the custom. If you get miffed by the inscrutable business approach, hire a local lawyer. In about six or seven years you will get a court date. The mentality of the bench may be worse than stochastic. Patience may be a virtue, but in Malaysia it isn't a guarantee you always get your money back.

Business here is done by negotiation with the political party in power, which has a high overhead. When the time for paying dues arises, you will be advised, or not advised, as the case may be. The results are the same. You will pay the dues. If not, you will regret it. If this manner of doing business is not palatable, better find another pond. The frogs in this pond are hungry and loud. It is their pond. The currencies of the world move against the ringgit. The US dollar rises and falls with the Malaysian ringgit since they were graciously linked in an act of kindness by the prime minister a few years ago. Pity the poor dollar if the link is ever severed.

The crucial information for beginners is that the government will always be your partner. The controlling partner. All decisions will be made by the partner. The only decision you will be allowed to make is when you call it quits. That decision will be expensive.

There are, however, two states where it is safe to invest in Malaysia. Both are in the north. One is Kelantan, the other is Terengganu.