After posting some spectacular growth in the first half, Malaysia’s exchange traded fund (ETF) may see that growth stunted by a fast-strengthening currency.
The Malaysian ringgit is currently sitting at a 13-year high against the dollar and is the second strongest currency in Asia, behind the Japanese yen, reports Martin Soong for CNBC. Dato Seri Ahmad Husni Hanadzlah, second finance minister of Malaysia, though, says that the strong ringgit isn’t hurting the economy all that much. The manufacturing sector is only a part of the ongoing supply chain that imports and exports products and any strength in the local currency isn’t having detrimental affect on the industry, remarks Hanadzlah. [Global ETFs: Where Investors Take Refuge.]
Hanadzlah also noted that GDP growth is projected to fall between 6% and 7% in the second half, slightly lower than the first half as a result of slower growth in the global economy, and the economy is estimated to expand by 5% to 6% in 2011, writes Zaidi Isham Ismail for Business Times.
Hanadzlah believes that for Malaysia, the worst is over. [Malaysia ETF Takes a Back Seat to Asia.]
For more information on Malaysia, visit our Malaysia category.
- iShares MSCI Malaysia Index Fund (NYSEArca: EWM) has gained 14.8% in the last three months
For full disclosure, Tom Lydon’s clients own shares of EWM.
Max Chen contributed to this article.
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