The economy has enough momentum to stave off interest rate cuts and the government has plans to spend around $58 billion on bridges, roads and other development projects. Next month, over a million civil servants will get their first pay raise in over 5 years. Its currency, the ringgit, has gained about 2.9% against the dollar this year.
EWM is already up 33% year-to-date. Top holdings include Bumiputra-Commerce HLDGS at 9.44%; Malayan Banking 8.29%; and IOI Corp. 6.69%. Financials lead the pack at 31.82%, followed by industrials with 18.17% and consumer discretionary at 13.77%.
EWM 1-yr chart: