This article investigates the existence of credit and housing booms in the Malaysian economy, with high levels of household indebtedness. The results reveal that both the credit boom and the housing boom exist and imply the fragility of the financial sector of the economy.

The purpose of this paper is to re-examine whether mean reversion property hold for 15 emerging stock markets for the period 1985 to 2006. Utilizing a panel stationarity test that is able to account for multiple structural breaks and cross sectional dependence, we find that the emerging stock markets follow a random walk process. However, further analysis on individual series show that the majority of stock prices in emerging markets are governed by a mean reverting process. This result, which is inconsistent with efficient market hypothesis, suggests that past information is useful in predicting future prices in most of the markets.

This paper extends the empirical literature on the relationship between the country risk and the demand for international reserves in selected ASEAN4 economies, namely Malaysia, Indonesia, Thailand and the Philippines, for the period 1980 to 2006. The empirical findings reveal that the fiscal position and stock of external indebtedness have a huge impact on a country's decision to hold international reserves. In addition, the results also find that Indonesia, a country with the highest risk in terms of economic and financial sectors, has taken corrective measures to deal with any sudden shocks.

This study is to model the connectivity between activated areas in the brain associated with pain responses in the presence and absence of a loved one. We used Th:YAG laser targeted onto the dorsum of the right hand of 17 Malay-female participants (mean age 20.59; SD 2.85 years) in two conditions: (1) in the absence of a loved one in the functional magnetic resonance imaging (fMRI) room (Alone condition), and (2) in the presence of a loved one (Support condition). The laser-induced pain stimuli were delivered according to an fMRI paradigm utilising blocked design comprising 15 blocks of activity and 15 blocks of rest. Brain activations and connectivity were analysed using statistical parametric mapping (SPM), dynamic causal modelling (DCM) and Bayesian model selection (BMS) analyses. Individual responses to pain were found to be divided into two categories: (1) Love Hurts (participants who reported more pain in the presence of a loved one) involved activations in thalamus (THA), parahippocampal gyrus (PHG) and hippocampus (HIP); and (2) Love Heals (participants who reported less pain in the presence of a loved one) involved activations in all parts of cingulate cortex. BMS showed that Love Heals could be represented by a cortical network involving the area of anterior cingulate cortex (ACC), middle cingulate cortex (MCC) and posterior cingulate cortex (PCC) in the intrinsic connectivity of ACC -> PCC -> MCC and ACC -> MCC. There was no optimal model to explain the increase in pain threshold when accompanied by the loved one in Love Hurts. The present study reveals a new possible cortical network for the reduction of pain by having a loved one nearby