Malaysia’s government leaders are demonstrating the kind of confidence in their economy that could lead to a boost in its exchange traded fund (ETF).
Deputy Prime Minister Datuk Seri Najib Tun Razak said the country has the kind of resilience that will allow it to grow 5% this year, according to a report on Bernama.
This comes a day after the prime minister also said the country is in no danger of slipping into a recession, and that the country has what it takes to weather the U.S. credit crisis.
Prime Minister Datuk Seri Abdullah Ahmad Badawi stated that the Malaysian reserves are strong, the surplus is strong, politics are stable, fundamentals are worthy, and their currency needs no capping.
Badawi has faith that their banking system is strong and that they have faced crises such as these before.
Razak says that despite a potential 5% growth for this year, growth for next year may need to be revisited as they take into account developments in the world economy.
Whether Malaysia rides out the storm unscathed or battered could be reflected in iShares MSCI Malaysia (EWM). In the last two weeks, Malaysia has been up 0.5% (and down 35% year-to-date), while the iShares MSCI EAFE (EFA) has been down 7.5% in two weeks (and down 37.5% year-to-date).
EWM is represented by the black line; EFA by the green.