Malaysia likely to remain in bond index

Malaysian Rating Corp Bhd (MARC) chief economist Nor Zahidi Alias (pic) said Malaysia was one of the very few bond markets that offer high real yields amid deflationary pressure.

PETALING JAYA: As Malaysia’s fate will be known by this month whether it will remain in the FTSE Russell’s World Government Bond Index (WGBI), there could be a risk of total foreign outflows to the tune of up to about RM25bil if it gets excluded.

However, analysts and economists are upbeat that the country would not be excluded from the WGBI, but worst case, the nation may remain on FTSE’s watch list.