Fund managers believe that the local equity market is set for some tightening over the coming months, despite the indirect good news that Malaysia had posted a 15.3% year-on-year growth in foreign investments last year.
Inflation in the country is expected to remain high for at least until the third or fourth quarter of the year before tapering off, says UOB Asset Management Malaysia chief executive officer Lim Suet Ling. “The scenario has changed now in the sense that inflation becomes stickier. Previously, we were thinking that it is just a short term kind of supply shock and you can get it over once the productions start again," she said during a panel session at the Maybank Invest Asean 2022 conference on Wednesday (June 8).