Risk of M’sia being excluded from WGBI lower now

“Despite the improvement, it still could not compensate for the sizeable outflow of RM7.4bil in 2Q19, which had been triggered by the placement of Malaysia on FTSE Russell’s watchlist for potential exclusion from the WGBI, ” RAM’s head of research Kristina Fong said.

PETALING JAYA: The risk of Malaysia being excluded from the World Government Bond Index (WGBI) is lower now after Bank Negara’s initiatives and engagements to address investor concerns, RAM Ratings says.

However, the possibility of an exclusion from the WGBI still cannot be completely discounted because Malaysia remains on the FTSE Russell’s watchlist for a potential downgrade, the rating agency said in a statement yesterday.