Malaysia steadily attracting foreign investors: Reports
Published on: Friday, August 23, 2024
By: Jessie Lee
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A recent press release from the Ministry of Finance highlighted Malaysia’s impressive GDP growth of 5.9% in Q2 2024, surpassing Bloomberg’s consensus forecast of 5.8%. (AFP pic)
Kota Kinabalu: Malaysia is steadily attracting foreign investors with its strong economic performance, according to financial news reports.
According to Reuters, Malaysia has become a focal point for foreign investors, particularly as political instability in neighbouring countries like Thailand and Indonesia deters capital.
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A recent press release from the Ministry of Finance highlighted Malaysia’s impressive GDP growth of 5.9% in Q2 2024, surpassing Bloomberg’s consensus forecast of 5.8%.
“A surge in domestic demand, along with exports’ continued recovery, pushed Malaysia’s economic growth beyond economists’ forecasts for the second consecutive quarter in 2024,” read the statement.
Further indicating Malaysia’s economic strength, Bank Negara Malaysia (BNM) noted in its Q2 2024 bulletin a significant increase in private investment, which grew by 12% during the quarter.
The bulletin also pointed out that the ringgit’s appreciation was supported by coordinated efforts between the government and BNM, which further enhanced the country’s investment appeal.
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The statement was echoed by Reuters, citing analysts that the ringgit has been pivotal to the outperformance.
“It’s been a fairly startling outperformance for the currency,” said T. Rowe Price's dynamic emerging markets bond strategy portfolio manager Leonard Kwan.
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A State Street Global Markets senior multi-asset strategist said the ringgit benefited from the yen’s strength in recent weeks as investors unwound the popular carry trade and rotated into currencies that were "under-owned and under-valued".
Meanwhile, M&G Investments portfolio manager for Asian equities Vikas Pershad said the diversification potential in sectors like construction, power and infrastructure is one of the key factors that makes Malaysia an attractive investment destination.
Bloomberg reported that Malaysia’s bond market has benefited from these favourable macroeconomic conditions.
“Malaysian bonds have returned 8.3 per cent to US dollar-based investors this year, making them the top performer in the region,” Bloomberg said.
The robust performance of the ringgit, combined with strong economic fundamentals, continues to attract global funds.
As Malaysia continues to navigate global economic challenges, its strategic reforms and solid economic base are expected to drive further growth, solidifying the country’s position as an increasingly attractive destination for foreign investment.
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