PM Anwar: Malaysia’s economy stable despite 0.2pc foreign shareholding dip

KUALA LUMPUR, Feb 13 — Prime Minister Datuk Seri Anwar Ibrahim affirmed that Malaysia’s economy is stable despite the 0.2 per cent reduction of foreign shareholding out of the RM2 trillion of share capitalisation in Malaysia.

He said that the dip that occurred after US President Donald Trump took office last month does not represent all of the investors’ confidence as Thailand and Indonesia also suffered losses.

“All of our economic indicators are increasing,

“The 0.2 per cent does not represent the confidence in the country’s economy,” Anwar told Parliament today in a supplementary question by Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang).

The prime minister also cited investment in the first nine months of 2024 marked a 10.7 per cent increase when compared over the same period in 2023.

“This includes the big companies — Infineon, Geely, Amazon, Microsoft and this is what represents the confidence and foreign shareholders.

“If we look at global equity, research firms, Nomura Global Market Research, JP Morgan, HSBC have increased their recommendations for publicly listed shares.

“If we look at the bonds market, the net flow is positive. As if this year, the net flow of bonds from foreign investors is RM1.55 billion. If they weren’t confident, they wouldn’t send RM1.55 billion into the system,” he told Parliament.

The prime minister further underlined that what was important was the growth rate, increase in investment and the strength of the ringgit.

He also denied that the economy was being shaken by the mystery addendum order to place former prime minister Datuk Seri Najib Razak under house arrest instead of being imprisoned, after it was brought up by Opposition leader Datuk Seri Hamzah Zainudin in Parliament.

Anwar also assured Parliament that he can answer questions about the addendum order only after the completion of ongoing court proceedings.

Additionally, the prime minister also agreed with the suggestion of the Opposition leader to reform Bursa Malaysia as Hamzah highlighted how the nation’s capital market had been stagnant for years.