ID :
144286
Thu, 09/30/2010 - 09:23
Auther :
Shortlink :
https://oananews.org//node/144286
The shortlink copeid
ECONOMIST URGES MALAYSIA TO LIBERALISE CAPITAL MART TO WOO INVESTORS
KUALA LUMPUR, Sept 29 (Bernama) -- Malaysia needs to make the environment more attractive for foreign investors by taking positive steps in the context of policy liberalisation in capital market.
Nomura International (Hong Kong) Ltd chief economist, Robert Subbaraman,
said the investment-to-gross domestic product (GDP) ratio for Malaysia has been
on long-term declining trend since the Asian financial crisis.
"Malaysia needs to find ways to increase private and foreign investments so
that it can become more competitive, more efficient as well as more productive
in order to move towards high-income economy," he said at the Roundtable on
Malaysia Economy here Wednesday.
Subbaraman said Malaysia could attract the foreign investors by further
improving the infrastructure such as telecommunications and transportation
systems.
He said Bank Negara Malaysia's (BNM) (central bank) action to maintain its
overnight policy rate at 2.75 per cent on Sept 2, 2010 was "appropriate".
"This reflected rising global uncertainty and already tighter monetary
conditions. Another reason could be due to the strengthening in the ringgit.
"We expect BNM to pause until Q1 next year as it awaits more clarity on the
global picture," he said.
Subbaraman said the ringgit was expected to be at 3.00 level by end-2011.
"In our forecast of no double-dip recession in the US, the ringgit is likely
to remain strong given the potential for larger capital inflows in light of BNM
measures to liberalise the capital market.
"Currency appreciation is also contributing to tighter monetary conditions
in nearly all Asian countries," he said.
Subbaraman projected Malaysia's economy to grow by 5.2 per cent next year
and 5.5 per cent in 2012.
He said the growth would be driven by domestic demand.
"We believe the domestic demand is playing a bigger role driving the Asian
economies, but it is a gradual process," he said.
-- BERNAMA
Nomura International (Hong Kong) Ltd chief economist, Robert Subbaraman,
said the investment-to-gross domestic product (GDP) ratio for Malaysia has been
on long-term declining trend since the Asian financial crisis.
"Malaysia needs to find ways to increase private and foreign investments so
that it can become more competitive, more efficient as well as more productive
in order to move towards high-income economy," he said at the Roundtable on
Malaysia Economy here Wednesday.
Subbaraman said Malaysia could attract the foreign investors by further
improving the infrastructure such as telecommunications and transportation
systems.
He said Bank Negara Malaysia's (BNM) (central bank) action to maintain its
overnight policy rate at 2.75 per cent on Sept 2, 2010 was "appropriate".
"This reflected rising global uncertainty and already tighter monetary
conditions. Another reason could be due to the strengthening in the ringgit.
"We expect BNM to pause until Q1 next year as it awaits more clarity on the
global picture," he said.
Subbaraman said the ringgit was expected to be at 3.00 level by end-2011.
"In our forecast of no double-dip recession in the US, the ringgit is likely
to remain strong given the potential for larger capital inflows in light of BNM
measures to liberalise the capital market.
"Currency appreciation is also contributing to tighter monetary conditions
in nearly all Asian countries," he said.
Subbaraman projected Malaysia's economy to grow by 5.2 per cent next year
and 5.5 per cent in 2012.
He said the growth would be driven by domestic demand.
"We believe the domestic demand is playing a bigger role driving the Asian
economies, but it is a gradual process," he said.
-- BERNAMA
