KUALA LUMPUR, Jan 13 — Malaysia's export sector is expected to bounce back positively from the second half of this year despite the ringgit's depreciation.
Eastspring Investments Global Strategist Robert Rountree said the positive outlook was based on the "J curve" trend which denotes the trend of a country's trade balance following the devaluation or depreciation of its currency under a certain set of assumptions.
From a foreigner's point of view, he said Malaysia's export volume, although moving at a slower pace, was poised to improve in three to six months beginning July this year.
"It might move at a slower pace but it is moving in a better direction," Rountree said during a question and answer session after a presentation on the equity market outlook for Malaysia and the region here today.
Meanwhile, Country Head Chief Executive Investment Chen Fan Fai said despite the weaker ringgit and lower crude oil prices which affected the Malaysian economy, investors should consider focusing on the construction and technology sectors.
"There will be a lot of construction including the current on-going development in areas such as Kuala Lumpur and most of the funds are coming from the private sector which will not slow down," he added. — Bernama
