KUALA LUMPUR: Malaysia’s economic indicators have shown huge improvement, says Datuk Seri Anwar Ibrahim, dismissing claims by Opposition MPs that investors' confidence has eroded due to policy uncertainties and flip-flops.
The Prime Minister said Bursa Malaysia reported minimal fund outflow from the country compared to its regional peers, such as Thailand and Indonesia, following the Donald Trump-led US administration.
“The Gross Domestic Product (GDP) for the first nine months of (2024) has been encouraging, investments rose 10.7% in the first nine months of 2024 compared to the corresponding period in 2023. This is a significant increase,” he said, adding that there were investment commitments from multinational companies such as Amazon, Microsoft, and Infineon Technologies, among others.
“This reflects investors’ confidence,” he said during the Prime Minister’s Question Time in the Dewan Rakyat on Thursday (Feb 13).
He said rating agencies such as Nomura, JP Morgan and HSBC have increased ratings for Malaysian public listed companies.
Anwar said the stock market did decline in February much like other regional bourses.
“However, companies and financial institutions continued to report big profits,” he said while reading out the profits registered by major banks.
“What sort of a dream is the perception that investors' confidence has eroded because of the addendum (issue)?” he asked.
He was responding to a question from Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang) on the reasons why many foreign investors have been selling their shares in the country recently.
“Where are the numbers from?” asked Anwar.
When it came to the supplementary question, Wan Ahmad Fayshal then cited a Bursa Malaysia report and said that the foreign outflows from Bursa Malaysia has been high since Anwar became Prime Minister. He then asked whether the reason for the outflow is the perception of corruption and the addendum issue, among others.
Anwar then reiterated that all economic indicators have increased. The bond market has also reported a positive performance.
“He (Wan Ahmad Fayshal) did not listen to my explanation,” he said.
“It is alright if that is his view. This is why Machang is not developed,” the premier said.
Wan Ahmad Fayshal then responded by saying that he was a first- time MP, to which Anwar retorted that he would consider increasing allocations for the development of Machang.
Anwar then said what was important was strong economic fundamentals such as economic growth, increase in investments and the strength of the ringgit.
Meanwhile, to another supplementary question by Datuk Seri Hamzah Zainudin (PN-Larut) on the need for reforms on Bursa Malaysia to provide foreign investors the "flavour" to invest in the local capital markets, Anwar said he agreed with the proposal.
“There have been changes to the leadership of Bursa Malaysia which indicate reforms. There are early proposals,” he said while adding that the market capitalisation remains positive at RM2 trillion.
