Malaysia still investors' favourite emerging mart: Academician
Published on: Monday, December 24, 2018
Kuala Lumpur: Malaysia is still the favourite emerging market choice of investors despite the current slow pace of foreign net inflow, says an academician.Universiti Teknologi Malaysia Geostrategist Professor Dr Azmi Hassan said going into 2019, it was encouraging to note that Malaysia was considered the second lowest in terms of funds outflow, year to date, as observed by MIDF Amanah Investment Bank Bhd Research which monitors the performance of seven Asian nations."I am quite upbeat about the Malaysian economy compared with the less encouraging inflow of foreign investors for the six other nations," he told Bernama.
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Dr Azmi also said the current persistent outflow was closely linked to the level of confidence among foreign investors who were perturbed by current negative external developments. "I believe domestic factors such as the fiscal policy of the Pakatan Harapan government coupled with Tabung Haji and Felda's financial fiasco played a part in adding to the already sluggish sentiment among foreign investors but external factors assumed a greater role in swaying foreign investors decision to invest in Malaysia," said Azmi. He referred to the issue of Britain's exit from the European Union, the lingering United States (US)-China trade war and contraction in Japan's gross domestic product growth as 'casting a dark cloud' worldwide and Malaysia was not spared the effect.Stay up-to-date by following Daily Express’s Telegram channel.
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"That would mean the Federal Fund Rate is nearing its neutral rate - a rate which is neither contrationary nor expansionary. So, again it is about the prospect of slower growth in the US as there is a lag time for monetary tightening to have an impact on the economy," he said. – Bernama
