KUALA LUMPUR: The ongoing restructuring policies in Malaysia serve to fortify the country’s economic capacity to absorb global shock or financial turbulence ahead, says Tun Dr Mahathir Mohamad.
The Prime Minister said the government remains confident that the new policies would create a stronger base and a balance between prudent spending and to ensure the private sector was given a strong boost.
“I would like to assure investors that any change in policies will not be detrimental to their businesses and ventures.
“The upcoming Budget to be tabled this Friday has been designed to place Malaysia on a strong footing which will ensure the prosperity of the rakyat and the next generation,” he said in his keynote address at the International Federation of Technical Analysts 31st Annual Conference here yesterday.
Dr Mahathir added that the current market volatility was attributed largely to trade wars between the United States and China and this had spooked major stock markets and sent shock waves throughout emerging markets.
He, however, stressed that Malaysia’s economy currently was still able to absorb and navigate through global challenges and uncertainties.
“As we walk through this myriad of uncertainties, we need to rally ourselves, set aside minor differences, push away trivial petty thoughts and join hands to help rebuild this nation,” he said.
Dr Mahathir added that it was important to remain relevant in terms of infrastructure and knowledge to thrive in the borderless world, in line with the speed of change in the financial markets.
Meanwhile, he also highlighted that technical analysis was an area that had yet to be fully explored in Malaysia.
He said while fundamental analysis remained a critical aspect of investment, forgoing technical analysis might reduce its effectiveness, particularly from the trading perspective.
“While long-term investment is critical, short-term trading would spur further participation in the market thus, improving overall liquidity in stock markets.
“Greater liquidity will ensure a thriving capital market, bring in more traders, system developers, market strategists and more players,” said Dr Mahathir.
He also urged institutional investors to embrace smaller cap stocks and called for retail investors and traders to sharpen their skills.
“Trading skills are not only important to financial professionals but also to the investing public at large.
“If more people start to trade and understand the basic concepts, there would be less quick-rich-scheme victims and the greater number of financial literate individuals will in turn build a more knowledgeable society and financial-savvy nation,” he said.
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