Capital flight fear continues as Malaysia stays on bond watchlist

Bond chtsss

ALMOST 18 months have passed since FTSE Russell added Malaysian government bonds to its watchlist, but there is yet no conclusive decision on whether the country will be removed from the World Government Bond Index (WGBI).

The continued delay on Malaysia’s status leaves concerns on the risk of capital flight as well as its impact on the local bond market and the ringgit unanswered.