Nope, Malaysia is nowhere near bankruptcy as a nation. Yes, this is just my personal opinion as a Malaysian. I also do not believe that it’s possible for us to force all the huge investment banks or analysts to who happened to say good things about us. This is the same for all those who also write bad things about us. Besides that one prominent university which ranked Malaysia as number one in the world for investment, we have another giving us another positive review. Credit Suisse (CS) said that the time is NOW for investors to buy into Malaysia. Buy here means invest, I believe. Full article here in thestar. Well, investment takes time. Especially after 2013, everything slowed down. In fact, a crisis is even predicted by an economist in 2018. Property market 2018: Crisis or recovery? So, who to believe? Haha. Up to you lah. Remember to take appropriate actions, that’s all. One private university which is now ranked within top 130 in Asia also advised that the time to buy a property should be now. Read it here: UTAR Research: It’stime to start buying your home
CS said that Malaysia has underperformed its peers in the merging markets because of the downward pressure on the ringgits well as wellasthe selldown in heavyweight sectors such as banks. This is now at the bottom. CS is now providing 10 reasons why investors may want to be bullish about Malaysia. First thing would be the recovery of commodity prices which would mean that the current projections for the GDP would be exceeded. This is one current prediction. Malaysia’s modest GDP growth for 2017 Second reason is because of the improvement of the earnings dynamics amor Malaysian corporates. Besides that, ringgit is considered extremely attractive after significant devaluations. In terms of REAL EFFECTIVE EXCHANGE RATE (REER), ringgit has already dropped 18 percent. (YES, it’s 18 percent …………) Besides all these positives, CS also gave stock recommendations. It said that these stocks offer superior dividends and free cashflow yields. They are Malayan Banking Bhd, CIMB Group Holdings Bhd, Axiata Group Bhd, Kuala Lumpur Kepong Bhd, Astro Malaysia Holdings Bhd, British American Tobacco (M) Bhd, IJM Corp Bhd, Gamuda Bhd, Alliance Financial Group Bhd and Malakoff Corp Bhd.
I choose to believe CS is right. 🙂 (For all the positive reasons based on stats) Maybe that’s because I have no choice; no external investments thus far beyond some unit trusts which are Indonesian centric. Ringgit is weak, there’s no doubt about it. However, there are huge differences between the fundamentals of 1998 versus the fundamentals of today. Sure,some would say we are weaker today. Household Debt Malaysia vs assets, as per Allianz Global Wealth Report In fact the whole ASEAN is stronger than 1998. Potentially more well integrated. When three becomes one; thailand-KL -Singapore As for that one currency which is always full of optimistic expectations, I shall reserve my comments. May its economy continue to grow because the world needs it too. In terms of all the stock recommendations, only buy if we understand the businesses. It’s not wise to buy simply because one huge investment bank is recommending it, okay? Happy investing. (Must wait yeah after investing….)
written on 19 March 2017
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