Emerging Markets To Grow At Double The Pace Of Advanced Countries: SC

KUALA LUMPUR, March 15 (Bernama) -- Emerging markets are a significant global assets class and are estimated to grow at double the pace of advanced countries, says the Securities Commission Malaysia. Chairman Ranjit Ajit Singh said emerging economies now contribute nearly 60 per cent of global Gross Domestic Product (GDP) and in general have experienced stronger economic growth trends than developed markets. "Emerging markets have also been the main recipients of record capital inflows following quantitative easing programmes embarked upon by developed economies," he said. The Institute of International Finance estimates that from 2010 to 2012, US$927.9 billion of foreign portfolio investments were allocated to emerging markets, said Ranjit. "The subsequent reversal of these significant portfolio inflows triggered much of the volatility observed in emerging markets over the past two years," he said at the Global Emerging Markets Programme Conference 2016 here Tuesday. The three-day conference, themed Risk and Vulnerability of Global Markets: Reinforcing Resilience in Emerging Markets, is a global platform for capital market regulators to exchange information and ideas to promote cross-border cooperation. Ranjit said in the context of capital markets, regulators have to keep in mind two key imperatives -- maintaining trust and confidence in the market, and building resilience against external shocks and market stresses. Meanwhile, Templeton Emerging Markets Group Executive Chairman Dr. Mark Mobius said the US market is expected to go sideways and downways, which will be good for emerging economies. Malaysia will become more consolidated as Malaysian stocks are mitigated by factors such as falling prices of oil and other commodities, he said during a presentation on "Emerging Asia and Its Long-term Potential". Mobius also said the ringgit is still undervalued despite the local note leading losses in emerging markets following the drop in crude oil prices to below US$40 per barrel. -- BERNAMA