KUALA LUMPUR: Foreign fund inflows are expected to further flood the financial markets, both in equities, money markets and the bond markets in Malaysia and the Asean region because of the “carry-trade” phenomenon, according to analysts and fund managers surveyed.
This scenario comes on the back of historically low interest rates in the region but still higher than developed countries in Europe and the United States which makes the Asean region an attractive and a bright spot to park foreign money from the carry-trade phenomenon.