摘要：In Malaysia, infrastructure financing requirements can be served through domestic bond markets, including its
corporate bond markets. However, financial crises have exacted a heavy toll on government debts, which are often
funded by issuance of government bonds. Persistent fiscal deficits and growing issuance of government bonds can
become a double-edged sword and result in crowding-out of private bond markets. This paper represents a first
attempt to analyze the potential determinants of the domestic corporate bond market in Malaysia to facilitate a closer
examination of the possibility of crowding-out on the Malaysian corporate bond market. This paper finds no evidence
of crowding-out effects on Malaysia's domestic corporate bond market from the country's growing government debt.
Importantly, findings strongly suggest that the well-functioning Malaysian government bond market has served as a
strong foundation for the growth of its domestic corporate bond market.
