KUALA LUMPUR: The biggest exodus of overseas investors from Malaysian equities since 2015 is spurring bets for a strong rebound in the Asian laggard.
Global funds pulled US$2.9 billion from local equities in 2018, and have remained net sellers this year, even as other markets in the region have lured inflows amid a revival in demand for riskier assets.“Fundamentally, we remain strong and the government will pursue policies that are positive for the market. Once the market understands that, flows will come back.”
Finance Minister Lim Guan Eng recently called on investors to buy Malaysian assets before they turn expensive once the fiscal situation gets back on track in three years. The Southeast Asian country is seeking to bring down its budget deficit to 3.4% of gross domestic product in 2019, from a five-year high of 3.7% in 2018.