Hutch451

2 Comments

    • ETF Upgrading: Sweden, Malaysia in the Doghouse? [view article]
      With regards to Malaysia, the ruling coalition did not "lose" the election, it simply failed to retain a 2/3 majority of parliament; thus the Prime Minister is not required by law to step down (although some in the coalition believe he should). Although outcome for the ruling coalition were worse than expected, these results are viewed by many (myself included) as a maturing of Malaysia as a democracy, as (among other things) it puts pressure on the ruling coalition to resolve issues of chronic cronyism and corruption--which should bode well for the markets in the future. The selloff was an over-reaction by mainly foreign investors who don't fully understand the situation here, and may be lumping Malaysia into the same group as Thailand or the Philippines politically. Malaysia has a much more stable political environment than other SEA nations. Malaysia has a strong commodity basis in its economy (although it is developing its value-added sector as well), a positive balance of payments, and the currency has been strengthening steadily over the past several months (the currency did not take a hit as a result of the recent election). Thus, one could argue that Malaysia is a buying opportunity as well. I am keeping my options open and powder dry in this regard. May 09 09:35 PM
    • Why I'm Restarting Stakes in Malaysia and Singapore [view article]
      As a resident of Malaysia, I have to say that the dynamism of the economy is apparent, and the major drag on accelerated growth has been the corruption, cronyism, and lack of transparency of the entrenched government. The recent election results, while generating some anxiety short-term, should ultimately result in increased accountability from the ruling elites, and corresponding reduction in bureaucratic drags on growth. Longer-term, this should have a positive effect on levels of direct foreign investment. While I'm not ready to jump in just yet, as inflation remains a real risk, I'm watching closely and will likely take a position in EWM this year. Mar 18 12:48 AM
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