Malaysia is putting a stop as to how far they will go to make exports more affordable in an effort to get their budding economy to bloom again. Malaysia’s related investments and exchange traded fund(ETF) should prosper for the long run.
Malaysia’s Bank Negara Malaysia won’t encourage a further decline in the ringgit. They are not going to lean on their currency to make exports in the Asian country more affordable or attractive, reports Natasha Brereton for The Wall Street Journal.
For now, the ringget will reflect market conditions and for the medium term it reflects economic fundamentals. Although the currency weakened against its rival in Singapore, the position is not going to change for now.
Plans for expansion include Malaysian companies branching out to emerging economies like Vietnam, Cambodia, Laos and Indonesia, as they offer plenty of opportunities. Investment in the services sector will be what emerging markets need to get their confidence back, and Malaysian companies can adapt to this, reports Bernama.
- iShares MSCI Malaysia Index (EWM): up 24.6% year-to-date
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.