May­bank IB: Elec­tion poses no threat to econ­omy

The Star Malaysia - StarBiz - - News - — Ber­nama

KUALA LUMPUR: The up­com­ing gen­eral elec­tion will not likely pose a ma­jor shock on Malaysia’s econ­omy, in­stead it will trans­late into con­ti­nu­ity of cur­rent poli­cies and in­vest­ment in­flows in sta­tus quo out­come.

May­bank In­vest­ment Bank Bhd (May­bank IB) re­gional head of eco­nomic re­search Suhaimi Ilias said in the bank’s base­line sce­nario, the rul­ing coali­tion would likely stay in power and en­sure pol­icy con­ti­nu­ity, es­pe­cially on the Malaysia-China re­la­tions.

“When you look at the land­scape of China’s in­vest­ment in Malaysia, it is very di­verse. Peo­ple tend to have this per­cep­tion that Chi­nese in­vest­ments in Malaysia are con­cen­trated in in­fras­truc­ture and prop­erty. Ac­tu­ally, that is wrong.

“The in­vest­ment is di­ver­si­fied. We have China’s FDI (for­eign di­rect in­vest­ment) in bank­ing and fi­nance, ed­u­ca­tion, man­u­fac­tur­ing and the lat­est be­ing Geely’s (Zhe­jiang Geely Hold­ings Group) stake ac­qui­si­tion in Pro­ton,” he said when met at the re­cent In­vest Asean Sin­ga­pore 2018, or­gan­ised by May­bank.

May­bank IB di­rec­tor and head of re­search for Malaysia eq­uity mar­kets Wong Chew Hann said the spin-off of the Geely-Pro­ton deal could be great as the com­pany was us­ing Malaysia to pen­e­trate the Asean mar­ket.

“Essen­tially, ex­ports from Malaysia to the rest of Asean do not carry tar­iffs on a sin­gle mar­ket ba­sis. We think that is the main rea­son why Geely came to Malaysia, apart from the in­fras­truc­ture and sup­port that Pro­ton and the gov­ern­ment are giv­ing,” she added.

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