Bloomberg reports that Malaysia is best growth story among emerging Southeast Asian markets

Lim Sian See

According to Bloomberg, Malaysia is now seen as the best growth story among emerging Southeast Asian markets.

One of the reason is that they believe Najib will continue for another 5 years and continue to deliver economic growth.

For all the criticism again Najib, his govt had delivered 10 years of growth without recession – successfully navigating the great global recession as well as the 80% drop in commodity prices.

Investors are also unhappy to hear about Tun Mahathir and gang’s attacks on China trade ties and investment.

They probably think Tun M and gang are crazy to disassociate itself with the fastest growing large economy when everyone else in the world wants to increase trade ties with China.

Read what Bloomberg says:…/-stability-rules-wins-investor-…

But in a world of political instability, investors love continuity. And with Prime Minister Najib Razak looking set for five more years in power, they have reason to cheer.

According to the World Bank, Malaysia is ahead of other Southeast Asian countries in terms of “political stability and absence of violence.”

Not all Malaysians welcome China’s growing presence. Former Prime Minister Mahathir Mohamad, the opposition’s candidate for prime minister, said he would review Belt and Road projects if elected, Anisah Shukry and Yudith Ho at Bloomberg News reported Monday.

But this isn’t what investors want to hear. Strengthening investment helped drive economic growth of 5.9 percent last year, the fastest pace since 2014. Private investment climbed to 26 percent of Malaysia’s GDP in 2016 from 23.4 percent in 2010. Thailand’s ratio, by contrast, has been slipping.

Sweet Spot:

Malaysia has fast growth and low inflation, unlike the Philippines, where price pressures are increasing

Source: Lim Sian See