THE Retirement Fund Inc (KWAP), Malaysia’s second-largest pension fund, may invest in the local units of overseas insurers as they sell stakes to comply with the country’s foreign ownership limits.
KUALA LUMPUR: Malaysia’s economy is resilient enough to withstand any financial impact once the China bubble burst, said RHB Asset Management (RHB AM).
Its chief investment officer of equities Mohd Fauzi Mohd Tahir said the stock market would be the first to be hit, with the repercussions felt in the banking sector, and to be followed by consumption spending.
“Malaysia alongside most Asean countries have been strengthening their banking sector by both debt restructuring and building reserves. In fact, our reserves are in good standing. There should not be much to be concerned of as there are already measures taken by the regulators,” he said.
Fauzi added that Malaysia’s first quarter gross domestic product growth was 5.6 per cent, thereby surpassing expectations. He said the trend was sustainable, with the FBM KLCI expected to hit 1,800 points by year-end.
“We are very much positive of the market for this year,” said Fauzi at the RHB Market Insights Forum 2017, here, yesterday.
“For the last three years, from 2014 to 2016, we have close to RM30 billion funds outflow. In the first half of this year alone, we saw a RM10 billion inflow and this is a positive development, and as long as the market is still delivering results.”
However, he remained concerned on the European Central Bank’s bond-buying programme and United States Federal Reserve’s interest rate rises.
“First-quarter earnings are good with corporate earnings in excess of eight per cent, above investors’ expectations of six per cent. That has been the convergence of positive news that has pushed the equities market in the first half of this year.
“The first half has been in excess of 10 per cent, but the region as whole, we are not the bestperforming market. We are in the bottom half in terms of performance.
“If you look at the performance of Bursa Malaysia, we have done quite well in isolation, but relative to the region we have not. The market touched 1,800 late last year, but now is now consolidating. We still see strong corporate earnings and potential upsides to the equity market for the second half,” said Fauzi.
RHB AM manages some RM54 billion of asset under management from its offices in Singapore, Hong Kong, Indonesia as well as Kuala Lumpur. Lidiana Rosli
For the first half alone this year, we saw RM10 billion funds inflow and this is a positive development as long as the market is still delivering results.”
MOHD FAUZI MOHD TAHIR RHB AM chief investment officer of equities
KWAP chief executive officer Datuk Wan Kamaruzaman Wan Ahmad says the fund is calling for pitches following inquiries
about buying stakes in overseas insurers’ Malaysian units.