The paper examines the arguments for and against a fixed exchange rate regime for a small open economy like Malaysia and looks at the post crisis actual performance of exchange rate movements of its neighbouring economies. The paper also evaluates the economic performance of Malaysia vis-à-vis that of the rest of ASEAN and discusses whether the differences could be attributable, at least partly, to the differing exchange rate policies adopted. Publication: 4th International Malaysian Studies Conference; 3-5 August 2004, Universiti Kebangsaan Malaysia, Bangi.  Authors: Saadiah Mohamad & Siti Ayu Jalil.