ID :
23437
Thu, 10/09/2008 - 12:40
Auther :
Shortlink :
https://www.oananews.org//node/23437
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M'SIAN ECONOMY STILL RESILIENT COMPARED OTHER COUNTRIES, SAYS MIA
By Tengku Noor Shamsiah Tengku Abdullah
KUALA LUMPUR, Oct 9 (Bernama) -- The Malaysian economy is still resilient compared to the United States, Japan and other countries in Europe despite the sharp decline in the local stock market, according to the Malaysian Investors Association (MIA).
"Malaysia is lucky compared to other countries as we are more resilient.
This is because after the country's general election, foreign fund managers
unloaded their holdings in the Malaysian capital market," MIA president Dr
P.H.S. Lim told Bernama Wednesday.
He said this in response to the sharp decline of the Malaysian shares with
the key index down 2.71 percent Wednesday in tandem with other regional bourses.
Share prices on Bursa Malaysia closed broadly lower Wednesday, with dealers
attributing this to selling pressure as players remained concerned over the
adverse impact of the financial crisis in the US.
The benchmark Kuala Lumpur Composite Index (KLCI) closed 27.04 points or
2.71 percent lower at 970.19 after opening 13.05 points lower at 984.18.
Lim said the foreign fund managers now did not have much to sell.
"What happens today was more because of the internal problems of the US,
Europe and other countries," he said.
"Whatever happens in the US will affect Malaysia seriously because it is
the
biggest economy in the world," he added.
Lim said the US gross domestic product (GDP) stood at US$16 trillion
compared to China at US$2 trillion), adding that even Japan, the world's second
biggest economy, only has a GDP of US$3 trillion.
"It's natural if big economies suffer, this will affect the other
countries," he said.
He advised investors to be cautious with their cash resources.
According to Lim, Malaysian corporate earnings are expected to be affected
by the global economy with sales of properties, cars, furniture and many other
products on the decline.
"We are hopeful that the Malaysian economy is able to withstand external
pressures from overseas. Otherwise it will be like another Asian financial
crisis," he said.
"We are lucky because Central Bank of Malaysia's financial reserves are
still strong at US$400 billion, which is much better compared during the
previous crisis," he added.
Lim said Malaysian crude palm oil price experienced a 60 percent drop
from
RM4,800 per tonne to RM1,800 per tonne.
"For Malaysian companies which are palm oil-based, some of their share
prices declined almost 50 percent," he said.
Lim said this year the KLCI had declined 37 percent since January and lost
about RM250 billion in terms of market capitalisation.
"Perhaps it will need another six months to year to remedy. The foreign
fund managers, for instance, now have their own problems and no money to buy our
stocks," he said.
-- BERNAMA
KUALA LUMPUR, Oct 9 (Bernama) -- The Malaysian economy is still resilient compared to the United States, Japan and other countries in Europe despite the sharp decline in the local stock market, according to the Malaysian Investors Association (MIA).
"Malaysia is lucky compared to other countries as we are more resilient.
This is because after the country's general election, foreign fund managers
unloaded their holdings in the Malaysian capital market," MIA president Dr
P.H.S. Lim told Bernama Wednesday.
He said this in response to the sharp decline of the Malaysian shares with
the key index down 2.71 percent Wednesday in tandem with other regional bourses.
Share prices on Bursa Malaysia closed broadly lower Wednesday, with dealers
attributing this to selling pressure as players remained concerned over the
adverse impact of the financial crisis in the US.
The benchmark Kuala Lumpur Composite Index (KLCI) closed 27.04 points or
2.71 percent lower at 970.19 after opening 13.05 points lower at 984.18.
Lim said the foreign fund managers now did not have much to sell.
"What happens today was more because of the internal problems of the US,
Europe and other countries," he said.
"Whatever happens in the US will affect Malaysia seriously because it is
the
biggest economy in the world," he added.
Lim said the US gross domestic product (GDP) stood at US$16 trillion
compared to China at US$2 trillion), adding that even Japan, the world's second
biggest economy, only has a GDP of US$3 trillion.
"It's natural if big economies suffer, this will affect the other
countries," he said.
He advised investors to be cautious with their cash resources.
According to Lim, Malaysian corporate earnings are expected to be affected
by the global economy with sales of properties, cars, furniture and many other
products on the decline.
"We are hopeful that the Malaysian economy is able to withstand external
pressures from overseas. Otherwise it will be like another Asian financial
crisis," he said.
"We are lucky because Central Bank of Malaysia's financial reserves are
still strong at US$400 billion, which is much better compared during the
previous crisis," he added.
Lim said Malaysian crude palm oil price experienced a 60 percent drop
from
RM4,800 per tonne to RM1,800 per tonne.
"For Malaysian companies which are palm oil-based, some of their share
prices declined almost 50 percent," he said.
Lim said this year the KLCI had declined 37 percent since January and lost
about RM250 billion in terms of market capitalisation.
"Perhaps it will need another six months to year to remedy. The foreign
fund managers, for instance, now have their own problems and no money to buy our
stocks," he said.
-- BERNAMA
