8 reasons Malaysia is attracting savvy investors.

16 Feb 2019

Dear Fellow Investor,

Last week I received a note from Motley Fool Singapore a research service which focuses mainly on Singapore shares.

The note was titled: Asia’s best kept secret: 8 reasons Malaysia is attracting savvy investors:

Some of the reasons stated included:

That 1MBD is a temporary distraction from what is essentially a long term growth story for the country.  

Malaysia has bounced back from the Asian financial crises and is presently growing at the GDP of 4.6 %  

Market cap of the SGX is 1.2 trillion SGD while the Malaysia market cap is about 0.52 trillion SGD with many world class companies. That means there is room to grow leveraging on Malaysia’s advantage of  low labor, land costs and a lower cost of living.

Malaysia also offers a prudent conservative investing environment as evidenced by the EPF retirement fund which has given an average return on capital of between 6 and 7 % since 2010.  This compares favourably with the Singapore CPF.

These reasons have the potential of attracting Singapore investors to Malaysia.

Foreign funds have been accumulating shares as investors are returning to China and Asian markets from developed markets.

The trade war issues between China and the US are improving.The Hang Seng is recovering nicely. The Shanghai index is bottoming.

China’s market recovery will benefit all the Asian markets.

President Trump masterfully made a deal with Congress to build his Mexican border wall and keep open the US government.  The markets reacted positively Friday  and the Dow rose over 400 points. Expect follow thru in Asia Monday.  Trump’s popularity is over 50 % positive  according to several polls.

There is still a cloud of extreme gloom hanging over the SGX and the KLSE but I am seeing rays of light piercing the gloom. Some of the companies we have invested in including Dialog, Inari and Kellington are showing surprise positive earnings results.  

Invest well and grow your wealth
Bill

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