Malaysia
Executive Summary Bull Markets In Malaysian Stocks Are Fully Dependent On Profit Growth
Bull Markets In Malaysian Stocks Are Fully Dependent On Profit Growth…
Malaysia: Bond Bullish…
Highlights The Malaysian economy is struggling. The latest surge in Covid-19 cases will further hamper the recovery. Shrinking employment and household incomes are accentuating deflationary forces. Fiscal support will be elusive until the statutory debt ceiling is raised, and therefore…
Malaysia’s Malaise Is Not Over…
Highlights The prolonged bear market in Malaysian stocks is rooted in a subpar, credit-fueled, consumption-led growth. Years of meagre capital investments has robbed its manufacturing sector of any pricing power. Firms’ already fading profitability now faces the specter of a deleveraging…
Feature In this report, we determine which South and Southeast Asian countries are better equipped to endure the COVID-19 pandemic. Answers to this question combined with our macro fundamental analysis lead us to recommend which countries to favor or avoid. We assess several factors in regard to…
Yesterday, BCA's Emerging Markets Strategy service argued that ongoing deflationary pressures in Malaysia are bearish for the MYR in the short-term. However, the Malaysian currency will sell off less than other EM currencies. Moreover, it is also close to a long-term bottom…
Malaysian businesses and households have been deleveraging. The top panel of Chart I-1 illustrates that commercial banks’ domestic claims on the private sector – both companies and households – relative to nominal GDP have been flat to down in recent years. This measure is produced by the central…
Highlights Malaysian businesses and households have been deleveraging and the economy risks entering a debt deflation spiral. This macro-backdrop is bond bullish. EM fixed income-dedicated investors should keep an overweight position in both local currency and US dollar government bonds. In…
Malaysian interest rates appear elevated given the state of its economy. Deflationary pressures have been intensifying and the central bank will be forced to cut its policy rate. To play this theme, we recommend receiving 2-year swap rates. We are also upgrading our recommended allocation to…