According to Aberdeen Standard Investments Malaysia managing director Gerald Ambrose, the ongoing trade war between the two giant economies of the United States and China, whether it blows into a full-blown war or not, would lead to “a lot of” multinational corporations reducing their operations in China and moving to South-East Asia, especially for electronics manufacturing.
Market weight is also very small on the electronics manufacturing sector. While it is dependent on external demand, Ambrose feels the sector should be overweight. “There are a lot of uncertainties and it’s slowly becoming clearer what the government plans to do in taking a step back in the private sector,” he said.
“Gross domestic product figures have been fantastic over the last few years, but on the ground, businesses are suffering. There’s always this missing link between GDP numbers and the real sentiment on the ground.He said the RM37bil in GST and income tax arrears that would flow back to the economy and an improvement in consumer spending and consumption can be seen at least in the second half of the year, where it would have a ripple effect on the economy.
United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: msianinsight - 🏆 8. / 63 Read more »
Source: malaymail - 🏆 1. / 86 Read more »