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Higher budget deficit to impact ringgit in short term, Franklin Templeton says


Franklin Templeton GSC Asset Management Sdn Bhd CEO/head Malaysia fixed income & sukuk Hanifah Hashim said the higher-than-expected deficit target announced at 3.7% of GDP for 2018 was expected to create volatility for the markets in the short term.

Franklin Templeton GSC Asset Management Sdn Bhd CEO/head Malaysia fixed income & sukuk Hanifah Hashim said the higher-than-expected deficit target announced at 3.7% of GDP for 2018 was expected to create volatility for the markets in the short term.

KUALA LUMPUR: The government’s higher deficit target announced in the Budget 2019 will make the ringgit susceptible to short-term pressure, says Franklin Templeton GSC Asset Management Sdn Bhd.

Chief executive officer/head Malaysia fixed income & sukuk , Hanifah Hashim cautioned on Friday concerns on the rating outlook on Malaysia coupled with uncertainty in global economic backdrop might lead to continuous net capital outflow and discourage offshore investors from investing in Malaysia. 

Corporate News , Economy

   

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