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Economic Research
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14
April 2017
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Malaysia
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Economic Update
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Recently-released data on foreign holdings in
Malaysia’s fixed income securities show a sharp decline of MYR26.2bn to
MYR178.2bn, as at end-March. This was the fifth straight month of selling
down, as foreign investors continued to adjust to the changing economic
environment. Going forward, we believe Malaysia may continue to see some
foreign selling in fixed income investments on account of:
1.
A further rate hike in the US;
2.
Sizeable maturity of Malaysian
government securities (MGS) in 2H17.
The sell-down in the fixed
income market, has taken a significant toll on the MYR. The ringgit
depreciated by 7.6% in the final three months of 2016. However, it has
stabilized, following measures undertaken by the Central Bank to deepen the
on-shore foreign exchange market.
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Friday, April 14, 2017
Foreign Investors Still Cutting Fixed Income Investments
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