Markets
Only a temporary setback
Cheah Chor Sooi | 22 Jun 2018 00:30
While Malaysia’s unit trust industry is not insulated from the volatility swings experienced in the equity and bond markets in recent times, prospects of a rebound look good. This is given that various reform policies to generate a return of monetary and human capital are underway to drive back capital flows over the longer term.

Moreover, concerns over regulatory uncertainty and kitchen-sinking exercises by the new government are expected to ease as it consolidates its fiscal position alongside efforts to restore investor confidence, according to Affin Hwang Asset Management Bhd chief marketing & distribution officer Chan Ai Mei.

However, some market softness can be expected in the near term as the government’s immediate focus is to implement structural and institutional reforms to curb corruption, as well as enhancing governance and transparency.

“Nonetheless, a robust governance framework will eventually lead to business stability that would attract more sustainable forms of foreign direct investment,” Chan tells FocusM. Coupled with fresh pro-growth policies, this would provide the uplift of growth for the economy and increase wealth distribution.

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