2019 will be a challenging year for M’sia economy due to trade war – Guan Eng

GEORGE TOWN: 2019 will be a challenging year for Malaysia’s economy due to the on-going US-China trade war, geopolitical concerns in the Middle East, global monetary tightening and swings in oil prices, says Finance Minister Lim Guan Eng.

He said the Malaysian economy especially the stock market will not be spared from the external factors happening outside the country.

However, he expressed optimism that the nation’s economy will continue to remain on a steady growth path supported by domestic and external demand.

“Despite a turbulent year, our stock market has remained resilient in comparison to our peers in Singapore, Thailand, Hong Kong, and China. Amidst large capital outflows among emerging markets and Asean countries this year, the FBM KLCI benchmark index registered a year-to-date (YTD) decline of 5.8 per cent as at end-November, compared to other Asian markets that have experienced declines ranging from 9.1 per cent to 22.7 per cent ,¡Åhe said in his keynote address at the MarketPlace @ Penang Fair 2019 here yesterday.

He added that Malaysia was the second-best performing stock market in the Asia Pacific region.

Lim said on the back of a challenging environment for global equity markets, facing external headwinds such as the ongoing US-China trade war, geopolitical concerns in the Middle East, global monetary tightening and swings in oil prices, trading activities in the local stock market remained robust with an average daily value trade of close to RM2.5 billion as at end-November 2018. “This is still an improvement from last year’s RM2.3 billion, which indicates that general interest remains intact as investors take opportunities on the market volatilities,” he said.