Capital flight hinders economic growth in ASEAN countries, study finds.
Capital flight in ASEAN countries like Indonesia, Malaysia, the Philippines, and Thailand has a negative impact on economic growth. Despite high growth rates, capital has been leaving these countries, leading to a scarcity of funds for domestic investment. Factors like high external debt, budget deficits, and political instability contribute to capital flight. Political stability is crucial for attracting capital and promoting economic growth in these Southeast Asian economies.