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Still, U.S. interest rate policy looms large for Malaysia, as it does for so many developing economies.

“So, we could see that flow of foreign fund greatly influence the performance of Malaysian equity since foreign institution usually hold more than 20% of total market cap of the main benchmark, the Kuala Lumpur Composite Index (KLCI). There are a host of factors that influence the flow of foreign fund into Malaysian equity. But for now, the pace of interest rate hike in US is the biggest concern. Any unexpected change in the pace and timing of rate hike would be unfavorable,” adds the Seeking Alpha article.

iShares MSCI Malaysia ETF