MALAYSIA’s bonds lured record inflows in August on optimism over the impact of the artificial intelligence boom on the Southeast Asian economy.
Foreign investors poured US$3.9bil into the nation’s government and corporate bonds, the biggest monthly inflow in Bank Negara Malaysia data going back to 2016.
Malaysia has emerged as Southeast Asia’s main data center hub, attracting billions of dollars of investment from companies such as Oracle Corp. and Amazon.com Inc. The inflows are also helping support the ringgit, which climbed more than 1% in August to be among Asia’s top performers.
Global funds have been drawn in as "Malaysia is an AI winner, boasting strong export growth and inbound foreign direct investment,” said Abbas Keshvani, Asia macro strategist at RBC Capital Markets Ltd. in Singapore. The trend is likely to continue in line with similar foreign direct investment inflows, he said. - Bloomberg
