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Where has all the FDI gone?

In our article last week, we wrote about the chronic underperformance of Bursa Malaysia, which is, in turn, a reflection of the country’s underlying economic fundamentals. This all began after the Asian financial crisis (AFC), when Malaysia implemented the currency peg (to the US dollar) and capital control measures. We provided irrefutable data as evidence of how this strategy drastically impacted subsequent investments by both foreigners and Malaysians. We showed the sharp increase in capital outflows by domestic corporates, institutions and individuals after control measures were relaxed.

Homeownership could be made more affordable if we opened our minds

There are understandably growing worries over the high level of indebtedness the world over, and especially so given the current environment of rapidly rising interest rates. The recent market meltdown in the UK underscores the rising risks of a broader global financial crisis. The excesses of the past decade, the borrowing binge fuelled by ultra-low interest rates and liquidity, are coming back to bite us, no doubt.

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