In my view, Malaysia is a very attractive investment destination in Asia. According to the International Monetary Fund (IMF), Malaysia is expected to grow 5.3% in 2011 and 5.6% in 2012. Through the New Economic Model, it will facilitate a more market oriented economy. Sooner, our country will be back on global investors radar screen.
Previously, we can’t deny that Malaysia has been viewed as defensive market, which works remarkably well for the country. However, our local stock market has been posting excellent performance recently and it’s always outperforming the emerging market indices. So, it’s highly likely that Malaysia will be moved to the advanced emerging market from the secondary market.
Plus, there’ll be more hot money flow into Malaysia share market from US within next 2-3 years. So, it’s possible for Malaysia to become a developed country in the future. Besides that, our general election will be held on next year, so I think the hot money will push the local stock market to the another higher level.
For those investors who have enough cash to invest then now could be the best time. But, it’s important not to jump head first into equity market without analyzing its outlook and fundamentals. My recommendation is to separate the money you need for your daily life from the money you are willing to put away for a few years.