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Investment inflows into Malaysia to see positive trend

Investment inflows into Malaysia is expected to see a positive trend following the high COVID – 19 vaccination rate and the stable political situation, according to global investment firm Franklin Templeton.

Its emerging markets equity, portfolio manager, senior vice-president Erik Mok said risks of further disruption to the economy is likely to be lower as more economic sectors are gradually allowed to reopen including the non-essential manufacturing and services sectors.

“We can expect a positive and stable policy from now on.

“Overall, we will see further diversification to ASEAN that benefits Malaysia along with the better COVID – 19 situation,“ he said in the Franklin Templeton Media Webinar Series today.

Mok also said that although there is no big reversal of inflows yet into Malaysia, the outflows, however, have stopped in August this year.

On the broader scope of Southeast Asia, he said the investment firm expects a strong rebound in all economies in the coming year once the markets start to reopen.

The firm is mainly positive on sectors in information technology and financial services with companies that have good prospects, long-term growth trends and sustainable earning power.

He said many investors were eyeing the ASEAN markets because of its relatively young population.

“This means there is a lot of room for consumption upgrades such as smartphone penetration, e-commerce, and banking or credit services,” said Mok.

Meanwhile, another Franklin Templeton emerging markets equity, portfolio manager, senior vice-president Michael Lai, who commented on China’s market outlook, said the firm remained reasonably optimistic over China’s e-commerce companies long term market growth.

“We also think the underlying goals are altruistic that China’s major objectives are to continue to lift people out of poverty and continue to raise per capita income,“ said Lai.

– Bernama