ID :
120647
Fri, 05/07/2010 - 10:29
Auther :
Shortlink :
https://oananews.org//node/120647
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M'SIA MAY SEE LESS BOND ISSUANCES THIS YEAR - RAM
KUALA LUMPUR, May 7 (Bernama) -- Bond issuances in Malaysia may see a drop to below RM50 billion (US$1=RM3.2) this year due to the lack of infrastructure projects and more risk-averse investors.
Nevertheless, the rollout of the 10th Malaysia Plan may stimulate the bond
market, RAM Holdings Bhd Group CEO/Executive Deputy Chairman C.
Rajandram said Thursday.
Private Debt Securities issuance for 2009 amounted to RM58.575 billion, of
which RM37.933 billion, accounted for corporate issues.
"While there are signs that the economy is showing signs of growth, it is
mainly in the export market," Rajandram said after the RAM Holdings Annual
General Meeting here Thursday.
He also said lower-rated bonds would find it difficult to raise funds
in the market.
Meanwhile, RAM Holdings Bhd's Group Chief Economist, Dr. Yeah Kim Leng said
there are also concerns that property prices may have escalated too rapidly,
especially for high-end property in the Klang Valley and this has to be
corrected.
"Overall, the economy has shown signs of a sustainable recovery, with
improved export and consumption demand," he added.
He is maintaining a full-year Gross Domestic Product (GDP) forecast of 4.9
per cent this year for the Malaysian economy. This is on the back of encouraging
signs of GDP growth in the United States, even if there are signs of weaknesses
in Europe.
-- BERNAMA
Nevertheless, the rollout of the 10th Malaysia Plan may stimulate the bond
market, RAM Holdings Bhd Group CEO/Executive Deputy Chairman C.
Rajandram said Thursday.
Private Debt Securities issuance for 2009 amounted to RM58.575 billion, of
which RM37.933 billion, accounted for corporate issues.
"While there are signs that the economy is showing signs of growth, it is
mainly in the export market," Rajandram said after the RAM Holdings Annual
General Meeting here Thursday.
He also said lower-rated bonds would find it difficult to raise funds
in the market.
Meanwhile, RAM Holdings Bhd's Group Chief Economist, Dr. Yeah Kim Leng said
there are also concerns that property prices may have escalated too rapidly,
especially for high-end property in the Klang Valley and this has to be
corrected.
"Overall, the economy has shown signs of a sustainable recovery, with
improved export and consumption demand," he added.
He is maintaining a full-year Gross Domestic Product (GDP) forecast of 4.9
per cent this year for the Malaysian economy. This is on the back of encouraging
signs of GDP growth in the United States, even if there are signs of weaknesses
in Europe.
-- BERNAMA
