So I was kinda interested about the whole financial crisis that happen in Asia, Thailand 1997, so I want to ask
How did this problem got spread into other country like Singapore, Malaysia, indonesia, Hong Kong, etc.
With a little knowledge of economic, can you please briefly explain it?
The crisis began in Thailand as a result of intense currency speculation that the baht was over-valued.
Other currencies such as the Philippine peso, Indonesian rupiah and Malaysian ringgit also began to suffer speculator attacks.
The contagion spread through 2 channels: trade and finance.
The fall in the baht made Thai exports cheaper on the international markets. For other ASEAN countries such as Indonesia with their own export markets, foreign demand for exports falls as importers in the US, Europe and Japan switch to the now-cheaper Thai goods. Lower exports orders caused an decrease in business revenue and jobs for these other ASEAN countries.
Foreign investors soon lost confidence in these economies and pulled out their capital, which overall cause round after round of rapid devaluation of all the currencies.