PETALING JAYA: Malaysia is on the verge of being removed from the World Government Bond Index (WGBI), with local government bonds facing a potential rating downgrade, raising the risk of capital flight and increasing headwinds on the ringgit.
However, bond market pundits told StarBiz that Malaysia’s potential exclusion from the global index could be averted, if the government could address the concerns of index managers and raise market confidence.
