Malaysia Hotline: +603- 2141 8908
Malaysia
has an open state-centric and newly industrialized market economy. Between 1957
and 2005, the country reported gross domestic product (GDP) growth of 6.5% on
average, which has made it one of the best performing economies in the region.
And the government has been reducing its role in the economy, while implementing
many business-friendly reforms.
But as
with most emerging or frontier markets, there is an element of geopolitical
risk and monetary policy risk. The country's political tensions in 2008 weighed
on the country, while the country has run ballooning deficits in the past that
have drawn investor scrutiny. And finally, corruption has started to become a
problem after years of reliability and stability.
Invest
in Malaysia's Stock Market
Exchange-traded
funds (ETFs) represent the easiest way to invest in Malaysia. By holding a
diverse basket of stocks, these securities offer instant diversification and
are easily bought and sold on U.S. stock exchanges. The most popular ETF used
to invest in Malaysia is the iShares MSCI Malaysia Index Fund (NYSE: EWM),
which mimics the MSCI Malaysia index.
American
Depository Receipts (ADRs) represent another option for international investors
looking to avoid foreign exchanges. These individual companies could be
purchased as a small part of a larger portfolio. But investors should be aware
that many of these ADRs are relatively illiquid and may be difficult to buy and
sell at attractive prices.
Here
are some of the most popular Malaysian ADRs:
-Malayan
Banking Berhad (MLYBY)
-Genting
Berhad (GEBHY)
-Genting
Malaysia Bhd (GMALY)
-MBF
Holdings Berhad (MBFBY)
-Tenaga
Nasion Berhad (TNABY)
Finally,
international investors can invest in the country's stock exchange - the Bursa
Malaysia. With just under 1,000 listed companies, the exchange is one of the
largest in Asia and offers a wide variety of investment choices.
Malaysian
Real Estate Investment
After
refocusing its efforts many years ago, Malaysia has made tourism its third
largest revenue contributor. This has made real estate investment a very
popular alternative form of investment for many international investors.
According to the Global Property Guide, average home prices have risen nearly
50% between 2002 and 2012, while the market remains highly competitive.
Despite
these favorable outcomes, there are several risks that investors should
carefully consider. Government attempts to make housing more affordable has led
to an oversupply at times, while there were new restrictions on foreign buying
put in place during the economic crisis that began in 2008. And finally, the
rental market remains very small relative to the U.S.
Key
Take Away to Invest in Malaysia
Malaysia
has a very robust economy and a pro-business government that has made it an
increasingly attractive investment destination for international investors. Malaysia's
political struggles and deficits in 2008 have made some international investors
tread a bit more cautiously than before.
ETFs
represent the easiest way to invest in Malaysia for most international
investors, but investors can also take a look at the domestic stock exchange. Malaysian
real estate may also be an investment option to consider, but be wary of the
drawbacks before committing any capital.
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my