Showing posts with label Malaysia. Show all posts
George Town, Penang is the one of the World Best Places to retire....
There are some unexpected global destination to retire, according to the
2014 Retire Overseas Index. Kathleen Peddicord, "Live and Invest
Overseas" author and publisher,George Town Penang, is one of the city as world best places to retire.
Watch the video below:
http://live.wsj.com/video/the-world-best-place-to-retire-is/EB5CE4E0-092D-4679-A1FA-C8A24149AEA8.html
"Located in northwest Malaysia, George Town gets its fair share of rain, particularly in April and October," it says.
One attraction for retirees is the fact that Malaysia has good, affordable and quality medical and dental services.
"Foreigners routinely travel to Malaysia for affordable, quality medical and dental services. There are several hospitals and clinics in and around George Town," the report points out.
As far as the cost of living is concerned, Malaysia ranks third, behind only Thailand and the Philippines, in the Global Retirement Index, in terms of lowest living costs.
But the catchline, which is likely to arouse the interest of US retirees, considering that seniors generally are restrained about their spending, is that "an American couple can get along extremely well on $1,500 a month!"
But a major attraction about George Town, and indeed, about Malaysia is the fact that it has a British colonial flavour.
Over the past decade, Kiplinger says, 19,488 foreigners, including 815 North Americans, "have taken advantage of a programme called Malaysia My Second Home, which offers retirement incentives such as long-term residency status and breaks on car imports and purchases".
But Kiplinger also mentioned the caveats.
"Applicants must meet strict financial requirements. But there is a charm and bustle to George Town, the capital of the Malaysian state of Penang. A Unesco World Heritage site, Malaysia's oldest city is known for its rich history but also for its street food and intriguing architecture.
Watch the video below:
http://live.wsj.com/video/the-world-best-place-to-retire-is/EB5CE4E0-092D-4679-A1FA-C8A24149AEA8.html
Kiplinger picked Penang as the 4th best place to retire abroad 2013
Kiplinger, which has an online publication, in its latest issue, describes the climate of George Town, with a population of about 740,200, as hot and humid."Located in northwest Malaysia, George Town gets its fair share of rain, particularly in April and October," it says.
One attraction for retirees is the fact that Malaysia has good, affordable and quality medical and dental services.
"Foreigners routinely travel to Malaysia for affordable, quality medical and dental services. There are several hospitals and clinics in and around George Town," the report points out.
As far as the cost of living is concerned, Malaysia ranks third, behind only Thailand and the Philippines, in the Global Retirement Index, in terms of lowest living costs.
But the catchline, which is likely to arouse the interest of US retirees, considering that seniors generally are restrained about their spending, is that "an American couple can get along extremely well on $1,500 a month!"
But a major attraction about George Town, and indeed, about Malaysia is the fact that it has a British colonial flavour.
Over the past decade, Kiplinger says, 19,488 foreigners, including 815 North Americans, "have taken advantage of a programme called Malaysia My Second Home, which offers retirement incentives such as long-term residency status and breaks on car imports and purchases".
But Kiplinger also mentioned the caveats.
"Applicants must meet strict financial requirements. But there is a charm and bustle to George Town, the capital of the Malaysian state of Penang. A Unesco World Heritage site, Malaysia's oldest city is known for its rich history but also for its street food and intriguing architecture.
Earnings must improve to lift market higher
THE first quarter of 2014 (1Q14), after a choppy start, ended on a fairly uneventful note for equity investors.
The headline FBM KLCI closed at 1,849.2 or up 0.7% for the month of March, further paring losses for the year-to-date to just about 1% following the recovery of some lost ground in February.
Trading volume improved in 1Q14, with the number of shares traded daily rising to about 2.07 billion, on average, compared with 1.71 billion in 4Q13 — boosted by periods of increased participation from retail investors (see Chart 1).
Looking back, the past three months witnessed sentiment swings on the local bourse that were driven, primarily, by external events.
Confidence in emerging markets — and their currencies — were rocked by fund outflows at the start of the year on the back of expectations of rising interest rates in the US. Selling pressure eased going into February and March — and bellwether indices in regional markets regained some poise but many still ended the quarter in the red (see Table 1).
Mirroring this sentiment, the domestic equity market saw intensified foreign selling in January, with net outflow totalling some RM3.7 billion. This was reduced to around RM1.7 billion in February and further to about RM0.7 billion last month (see Chart 2).
The persistent foreign selling brought total outflow to more than RM6 billion in 1Q14. Purchases by local institutional funds kept losses at bay, with the benchmark index losing just 1%.
If, however, stocks on Bursa Malaysia are to perform for the rest of this year, it is imperative that corporate earnings regain positive momentum.
Earnings must regain positive momentum
As such, the upcoming earnings results season for 1Q14, to be released over April-May, will be closely scrutinised for any sign of reversal — after having disappointed for consecutive quarters over the past two to three years.
The last results season for 4Q13 was, once again, a letdown even though expectations have been gradually pared through the year. As it turned out, while over half of the companies covered by research analysts met expectations, more of the remaining companies disappointed as compared to those that beat consensus.
Corporate earnings growth has been performing well below par — estimated at just 2%-3% last year, similar to levels recorded in 2012. By contrast, the KLCI gained 10.3% and 10.5% in 2012 and 2013 respectively. The outsized gains as compared against earnings growth, on average, mean that share prices are being supported by higher and higher valuations.
The forward price-earnings ratio for the broader market is now estimated at more than 17 times — above the longer-term average of about 15 times. High valuations are keeping many investors from putting fresh money into the market.
Therefore, in order for share prices to appreciate further and for gains to be sustainable, earnings growth must catch up.
1Q14 results may set tone for whole year
Many market observers are putting their hopes on the 1Q14 results, that this will be the turnaround quarter. This is underscored by pretty robust earnings growth forecasts for this year, which range from the high single-digit to over 10% currently.
In reality though, the prospects may not be so rosy. For one, domestic consumption, which has been a key driver for our economy in recent years, is slowing — burdened by rising inflation and high household debt. The latter has risen to nearly 87%, from 81% at end-2012. Underlining this, retail sales growth fell well short of expectations, expanding by just 4.5% last year against the forecast of 6%.
The widely expected recovery in exports may also be dampened by the economic slowdown unfolding in China, one of our largest export destinations.
It remains to be seen how company earnings will fare under an environment of weaker demand and rising cost of operations.
Should corporate earnings results remain lacklustre, thus offering few leads, market sentiment would likely continue to be dictated by external events — in particular, the pace of US economic growth, pullback of quantitative easing and start of the rate-hike cycle.
Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.
This article first appeared in The Edge Financial Daily, on April 2, 2014.
The headline FBM KLCI closed at 1,849.2 or up 0.7% for the month of March, further paring losses for the year-to-date to just about 1% following the recovery of some lost ground in February.
Trading volume improved in 1Q14, with the number of shares traded daily rising to about 2.07 billion, on average, compared with 1.71 billion in 4Q13 — boosted by periods of increased participation from retail investors (see Chart 1).
Looking back, the past three months witnessed sentiment swings on the local bourse that were driven, primarily, by external events.
Confidence in emerging markets — and their currencies — were rocked by fund outflows at the start of the year on the back of expectations of rising interest rates in the US. Selling pressure eased going into February and March — and bellwether indices in regional markets regained some poise but many still ended the quarter in the red (see Table 1).
Mirroring this sentiment, the domestic equity market saw intensified foreign selling in January, with net outflow totalling some RM3.7 billion. This was reduced to around RM1.7 billion in February and further to about RM0.7 billion last month (see Chart 2).
The persistent foreign selling brought total outflow to more than RM6 billion in 1Q14. Purchases by local institutional funds kept losses at bay, with the benchmark index losing just 1%.
If, however, stocks on Bursa Malaysia are to perform for the rest of this year, it is imperative that corporate earnings regain positive momentum.
Earnings must regain positive momentum
As such, the upcoming earnings results season for 1Q14, to be released over April-May, will be closely scrutinised for any sign of reversal — after having disappointed for consecutive quarters over the past two to three years.
The last results season for 4Q13 was, once again, a letdown even though expectations have been gradually pared through the year. As it turned out, while over half of the companies covered by research analysts met expectations, more of the remaining companies disappointed as compared to those that beat consensus.
Corporate earnings growth has been performing well below par — estimated at just 2%-3% last year, similar to levels recorded in 2012. By contrast, the KLCI gained 10.3% and 10.5% in 2012 and 2013 respectively. The outsized gains as compared against earnings growth, on average, mean that share prices are being supported by higher and higher valuations.
The forward price-earnings ratio for the broader market is now estimated at more than 17 times — above the longer-term average of about 15 times. High valuations are keeping many investors from putting fresh money into the market.
Therefore, in order for share prices to appreciate further and for gains to be sustainable, earnings growth must catch up.
 |  |
Many market observers are putting their hopes on the 1Q14 results, that this will be the turnaround quarter. This is underscored by pretty robust earnings growth forecasts for this year, which range from the high single-digit to over 10% currently.
In reality though, the prospects may not be so rosy. For one, domestic consumption, which has been a key driver for our economy in recent years, is slowing — burdened by rising inflation and high household debt. The latter has risen to nearly 87%, from 81% at end-2012. Underlining this, retail sales growth fell well short of expectations, expanding by just 4.5% last year against the forecast of 6%.
The widely expected recovery in exports may also be dampened by the economic slowdown unfolding in China, one of our largest export destinations.
It remains to be seen how company earnings will fare under an environment of weaker demand and rising cost of operations.
Should corporate earnings results remain lacklustre, thus offering few leads, market sentiment would likely continue to be dictated by external events — in particular, the pace of US economic growth, pullback of quantitative easing and start of the rate-hike cycle.
Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.
This article first appeared in The Edge Financial Daily, on April 2, 2014.
Tag :
Malaysia
Malaysia is 2014 world's top manufacturing location
PETALING JAYA: Malaysia is the world's top manufacturing location, according to a report by global real estate services firm Cushman & Wakefield.
Published on its website last week, Cushman & Wakefield said the Manufacturing Index 2014 showed that Malaysia scores particularly well in the costs and risks categories, justifying its position at the top of the ranking.
Malaysia is one of the least expensive locations within the index. Meanwhile, Taiwan places second with South Korea in third and Thailand in fourth.The largest manufacturing country in the world, China, comes fifth overall, performing strongly in terms of costs, but falling short of the top spot due to its weak score in the risk category.
Cushman & Wakefield Asia Pacific corporate occupier & investor services executive managing director Richard Middleton said Asia Pacific continues to be at the forefront of the global manufacturing sector.
"This is highlighted by the top five countries in the index all being located in the region. Furthermore, locations such as Vietnam and the Philippines are also anticipated to emerge over the next few years as notable manufacturing destinations," it said.
According to the firm, the Manufacturing Index 2014 assesses factors likely to affect the successful operation of production facilities in the 30 countries with the largest manufacturing output, as defined by United Nations Trade and Investment (UNCTAD).
The primary aim of the ranking is to illustrate what parameters manufacturers need to consider when evaluating the most suitable locations to expand or relocate. In the report, three principal areas, namely costs, risks and conditions, are analysed and broken down again into more than 30 sub-categories.
Factors including logistics, the likelihood of natural disaster, economic risk, energy and labour costs are all taken into consideration and individually weighted for comparison.
The index takes the example of a company with highly mechanised operations, which generally requires unskilled labour, operating within a multi-regional market for a single finished product. These companies typically target a growing urban population and consider sustainability to be an important factor.
Download the Where in the World : Manufacturing Index 2014 full report here
Published on its website last week, Cushman & Wakefield said the Manufacturing Index 2014 showed that Malaysia scores particularly well in the costs and risks categories, justifying its position at the top of the ranking.
Malaysia is one of the least expensive locations within the index. Meanwhile, Taiwan places second with South Korea in third and Thailand in fourth.The largest manufacturing country in the world, China, comes fifth overall, performing strongly in terms of costs, but falling short of the top spot due to its weak score in the risk category.
Cushman & Wakefield Asia Pacific corporate occupier & investor services executive managing director Richard Middleton said Asia Pacific continues to be at the forefront of the global manufacturing sector.
"This is highlighted by the top five countries in the index all being located in the region. Furthermore, locations such as Vietnam and the Philippines are also anticipated to emerge over the next few years as notable manufacturing destinations," it said.
According to the firm, the Manufacturing Index 2014 assesses factors likely to affect the successful operation of production facilities in the 30 countries with the largest manufacturing output, as defined by United Nations Trade and Investment (UNCTAD).
The primary aim of the ranking is to illustrate what parameters manufacturers need to consider when evaluating the most suitable locations to expand or relocate. In the report, three principal areas, namely costs, risks and conditions, are analysed and broken down again into more than 30 sub-categories.
Factors including logistics, the likelihood of natural disaster, economic risk, energy and labour costs are all taken into consideration and individually weighted for comparison.
The index takes the example of a company with highly mechanised operations, which generally requires unskilled labour, operating within a multi-regional market for a single finished product. These companies typically target a growing urban population and consider sustainability to be an important factor.
Download the Where in the World : Manufacturing Index 2014 full report here
Tag :
Malaysia
Digi to invest RM900m for capex in 2014
KUALA LUMPUR: Digi Telecommunication Sdn Bhd is committed to invest up to RM900 million in capital expenditure this year to further strengthen its network position, says chief operating officer Albern Murthy.
He said the investment would be on increasing the High Speed Packet Access (HSPA) and 3G to 86 per cent of the population coverage, growing the Long Term Evolution (LTE) footprint to 1,500 sites and expanding the fibre network.
Murthy said Digi would also focus on delivering relevant and affordable device and service offerings to drive Internet uptake beginning with the two new plans introduced today -- the Digi Smart Plan and the Best Weekly prepaid packages.
Speaking to reporters after the launch of the new plans, Murthy said, the company had invested about RM1.6 billion, in the past two years in capital expenditure to modernise its network and expand its coverage nationwide to build a stronger and more stable network.
"Resilient focus on providing a better data experience means more Malaysian in more areas can now have access to a high quality, always on, high-speed Internet connectivity.
"Our brand new 'Best for Internet network' solidly position us to grow our mobile Internet customer base further," he added.
Meanwhile, Digi chief marketing officer, Christian Thrane said the company expects the revenue growth for Digi to be around 4-6 per cent this year, with a continued significant growth from the Internet mobile users.
He said last year the company had about 47 per cent growth in Internet mobile users and with a new network and new technology plus high smart phone penetration in Malaysia, the growth was expected to be more exponential this year.
Thrane added Digi's Best for Internet proposition is about providing customers a total Internet experience by taking holistic approach in innovating products that fits customers usage patterns of which he said is based on their statistic analysis on customer's usage and frequencies.
Digi provides mobile voice, Internet and digital services to 11 million customers in Malaysia.
Subscribers of the new byte size weekly package can now enjoy unlimited Internet surfing and social messaging from RM3, RM5 or RM7 for weekly package, while the new Digi Smart Plans is ranged between RM50 to RM148 per month.
Higher packages are also bundled with Norton Mobile Security Protection, said Thrane.-- Bernama
He said the investment would be on increasing the High Speed Packet Access (HSPA) and 3G to 86 per cent of the population coverage, growing the Long Term Evolution (LTE) footprint to 1,500 sites and expanding the fibre network.
Murthy said Digi would also focus on delivering relevant and affordable device and service offerings to drive Internet uptake beginning with the two new plans introduced today -- the Digi Smart Plan and the Best Weekly prepaid packages.
Speaking to reporters after the launch of the new plans, Murthy said, the company had invested about RM1.6 billion, in the past two years in capital expenditure to modernise its network and expand its coverage nationwide to build a stronger and more stable network.
"Resilient focus on providing a better data experience means more Malaysian in more areas can now have access to a high quality, always on, high-speed Internet connectivity.
"Our brand new 'Best for Internet network' solidly position us to grow our mobile Internet customer base further," he added.
Meanwhile, Digi chief marketing officer, Christian Thrane said the company expects the revenue growth for Digi to be around 4-6 per cent this year, with a continued significant growth from the Internet mobile users.
He said last year the company had about 47 per cent growth in Internet mobile users and with a new network and new technology plus high smart phone penetration in Malaysia, the growth was expected to be more exponential this year.
Thrane added Digi's Best for Internet proposition is about providing customers a total Internet experience by taking holistic approach in innovating products that fits customers usage patterns of which he said is based on their statistic analysis on customer's usage and frequencies.
Digi provides mobile voice, Internet and digital services to 11 million customers in Malaysia.
Subscribers of the new byte size weekly package can now enjoy unlimited Internet surfing and social messaging from RM3, RM5 or RM7 for weekly package, while the new Digi Smart Plans is ranged between RM50 to RM148 per month.
Higher packages are also bundled with Norton Mobile Security Protection, said Thrane.-- Bernama
Penang bets on IT-BPO Hub
The RM3.3bil Infor-mation Technology Outsourcing and Business Process Outsourcing (IT-BPO) Hub in Penang will generate some 30,000 high-paying jobs when the project is fully developed in 10 years.
Chief Minister Lim Guan Eng said in the first five years, about 21,000 high-paying jobs would be created.
“The fastest-growing sector in the BPO industry in Malaysia is in banking, financial services and insurance with a 30% market share followed by manufacturing (27%), oil and gas (22%), and others such as retail, logistics, government and telecommunication.
“The outsourcing sector in Malaysia is expected to expand at an average rate of 15% in the next three years in terms of revenue,” he said at the ground-breaking ceremony of the IT-BPO Hub in Bayan Lepas (next to the Penang International Airport) yesterday.
The IT-BPO Hub comprises three components involving a 30ha IT-BPO Park in Bayan Lepas, a planned development of 2.8ha BPO Prime in Bayan Baru and a 9,290sq m of Creative Animation Triggers (CAT) in the George Town heritage enclave.
Lim said he was informed that the outsourcing industry had created about 50,000 new jobs as of June 2013, adding that the Multimedia Development Corp targets the creation of at least 85,000 jobs by 2017 for Malaysia.
BPO services include customer operations, data processing, back office administration, accounting, technical support, transcription, software development, IT consultancy and disaster recovery services.
Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar represented the Prime Minister at the event. He said the global outsourcing market was currently worth US$458bil (RM1.501 trillion) and was expected to reach US$625bil (RM2.048 trillion) by 2017.
“Malaysia’s outsourcing industry worth US$1.7bil (RM5.57bil) in 2012 is projected to grow even faster, doubling in value by 2017. The federal and state governments must work together to ensure the success of the IT-BPO Hub,” he added. - The Star 2/3/14
Investing in Malaysia and my take on the Stock Market Falls
Investing in Malaysia and my take on the Stock Market Falls (written in 18 months ago)
Mar 15, 2007 By: Money_and_Markets
I'm writing to you from the 33rd floor of the Kuala Lumpur Hilton, in the capital and largest city of Malaysia. One of three main Malaysian territories, metropolitan Kuala Lumpur is home to 6.9 million of Malaysia's 26.6 million citizens. I've been here in the city, which locals call “KL,” for three days. Let me sum up what I've observed: KL, and Malaysia in general, are hotter than hot! And I don't mean just the weather, which is 97 degrees and humid. I'm talking about the country's economy.
Chic, vibrant, youthful, exciting, buzzing — those are just some of the words I'd use to describe the scene here. Like other Asian cities, KL is a melting pot. There are people of original Malay descent, along with Chinese, Indians, and other indigenous ethnic backgrounds.
Islam is the predominant religion in Malaysia.. As I walked around the city, I saw devout Muslims chatting on their cell phones, working wirelessly on their laptops, and shopping for luxury Western goods in droves. From Louis Vuitton to Harry Winston Jewelers, the luxury shops of the famous Golden Triangle shopping area in KL are jam-packed seven days a week.
Another thing that really caught my attention: Almost everyone here speaks English, largely due to the British occupation from 1795 to 1957, after which the independent Malaysia was formed. This widespread use of English is a huge plus, especially when you put it into the context of economic growth.
The country's largest industry is manufacturing, which accounts for 30.7% of the economy. Malaysia boasts booming auto manufacturing businesses, vibrant furniture factories, and thriving electronics and semiconductor chip makers. Tin and base metals account for another 15% of the economy, and the country's financial services industry now comprises another 16%. Other important areas are agriculture (palm oil and rubber), trade, construction, and tourism.
Malaysia's economy expanded at a very healthy 5.9% last year, more than twice as fast as the U.S. economy. With only $39 billion in gross domestic product, the country is tiny by comparison, but its GDP looks set to keep soaring in the years ahead. Foreign direct investment in Malaysia is also exploding higher, reaching a record $5.7 billion in 2006, up more than 12% from 2005. Why Malaysia Will Be One Of the Fastest-Growing Islamic Economies in the World
Malaysia clearly has an economic advantage because of its vast natural resources in agriculture, mining, and oil. It also has strong roots in British law and that large English-speaking population that I mentioned.
But Malaysia has another unique advantage that I believe will help push its economy ahead at solid growth rates for several more years: It is home to the largest Islamic capital markets in the world! The Malaysian government has always been sensitive to the Islamic religion, and, unlike many other Muslim countries, it has kept the religion's principals in mind when it comes to monetary matters.
Case in point: Malaysia is the first Islamic country to have its own Islam-based stock exchange, the Bursa Malaysia Berhad. This subset of the country's main stock market was launched on March 18, 2005. The exchange lists equities, derivatives, and offshore markets — but only those that adhere to Islamic tenets. For example, companies cannot actively seek revenues from interest income, gambling, life insurance, tobacco, or alcohol. In short, Malaysia has done what no other country has done — accommodated the tenets of Islamic law in its economy and its stock market by setting up separate listings. These companies allow the devout to invest with a conscience and help foster the Islamic economy.
This Malaysian system wouldn't work in many other areas of the world. But it gives tens of millions of Muslim investors a unique solution to today's rapidly changing financial markets.
There are over 1.5 billion Muslims in the world today, representing 24% of the world's population. Key developments like Malaysia's Bursa Berhad help to bring them into modern society while addressing their religious needs.
My view: Malaysia's economy is poised for loads more growth in the years ahead. Its stock markets have recently pulled back, and now look very attractive to me.
Meanwhile ...
My Signals for U.S. Markets Remain In Sell Mode!
Please don't get me wrong ... I love the U.S. But I'm also a realist, and today's economic growth is not going to be found in the States. Indeed, as I noted two weeks ago, the U.S. economy seems headed for a recession. It's been floating on a magic carpet ride for the past three years, via artificially low interest rates, strong real estate prices, and blind optimism.
I also told you that my indicators strongly suggested a Dow close below 12,242 — which we got on February 27 — would be an important sell signal, indicating the potential for further sharp declines in many U.S. stocks. We saw another wave of selling on Tuesday, but I don't think that's the worst of it. Don't be complacent! I fully expect that there are more waves of selling ahead. I continue to like many natural resource stocks, but many other U.S.-based companies look vulnerable to additional sharp declines.
Best wishes,
By Larry Edelson
http://www.marketoracle.co.uk/Article532.html
Mar 15, 2007 By: Money_and_Markets
I'm writing to you from the 33rd floor of the Kuala Lumpur Hilton, in the capital and largest city of Malaysia. One of three main Malaysian territories, metropolitan Kuala Lumpur is home to 6.9 million of Malaysia's 26.6 million citizens. I've been here in the city, which locals call “KL,” for three days. Let me sum up what I've observed: KL, and Malaysia in general, are hotter than hot! And I don't mean just the weather, which is 97 degrees and humid. I'm talking about the country's economy.
Chic, vibrant, youthful, exciting, buzzing — those are just some of the words I'd use to describe the scene here. Like other Asian cities, KL is a melting pot. There are people of original Malay descent, along with Chinese, Indians, and other indigenous ethnic backgrounds.
Islam is the predominant religion in Malaysia.. As I walked around the city, I saw devout Muslims chatting on their cell phones, working wirelessly on their laptops, and shopping for luxury Western goods in droves. From Louis Vuitton to Harry Winston Jewelers, the luxury shops of the famous Golden Triangle shopping area in KL are jam-packed seven days a week.
Another thing that really caught my attention: Almost everyone here speaks English, largely due to the British occupation from 1795 to 1957, after which the independent Malaysia was formed. This widespread use of English is a huge plus, especially when you put it into the context of economic growth.
The country's largest industry is manufacturing, which accounts for 30.7% of the economy. Malaysia boasts booming auto manufacturing businesses, vibrant furniture factories, and thriving electronics and semiconductor chip makers. Tin and base metals account for another 15% of the economy, and the country's financial services industry now comprises another 16%. Other important areas are agriculture (palm oil and rubber), trade, construction, and tourism.
Malaysia's economy expanded at a very healthy 5.9% last year, more than twice as fast as the U.S. economy. With only $39 billion in gross domestic product, the country is tiny by comparison, but its GDP looks set to keep soaring in the years ahead. Foreign direct investment in Malaysia is also exploding higher, reaching a record $5.7 billion in 2006, up more than 12% from 2005. Why Malaysia Will Be One Of the Fastest-Growing Islamic Economies in the World
Malaysia clearly has an economic advantage because of its vast natural resources in agriculture, mining, and oil. It also has strong roots in British law and that large English-speaking population that I mentioned.
But Malaysia has another unique advantage that I believe will help push its economy ahead at solid growth rates for several more years: It is home to the largest Islamic capital markets in the world! The Malaysian government has always been sensitive to the Islamic religion, and, unlike many other Muslim countries, it has kept the religion's principals in mind when it comes to monetary matters.
Case in point: Malaysia is the first Islamic country to have its own Islam-based stock exchange, the Bursa Malaysia Berhad. This subset of the country's main stock market was launched on March 18, 2005. The exchange lists equities, derivatives, and offshore markets — but only those that adhere to Islamic tenets. For example, companies cannot actively seek revenues from interest income, gambling, life insurance, tobacco, or alcohol. In short, Malaysia has done what no other country has done — accommodated the tenets of Islamic law in its economy and its stock market by setting up separate listings. These companies allow the devout to invest with a conscience and help foster the Islamic economy.
This Malaysian system wouldn't work in many other areas of the world. But it gives tens of millions of Muslim investors a unique solution to today's rapidly changing financial markets.
There are over 1.5 billion Muslims in the world today, representing 24% of the world's population. Key developments like Malaysia's Bursa Berhad help to bring them into modern society while addressing their religious needs.
My view: Malaysia's economy is poised for loads more growth in the years ahead. Its stock markets have recently pulled back, and now look very attractive to me.
Meanwhile ...
My Signals for U.S. Markets Remain In Sell Mode!
Please don't get me wrong ... I love the U.S. But I'm also a realist, and today's economic growth is not going to be found in the States. Indeed, as I noted two weeks ago, the U.S. economy seems headed for a recession. It's been floating on a magic carpet ride for the past three years, via artificially low interest rates, strong real estate prices, and blind optimism.
I also told you that my indicators strongly suggested a Dow close below 12,242 — which we got on February 27 — would be an important sell signal, indicating the potential for further sharp declines in many U.S. stocks. We saw another wave of selling on Tuesday, but I don't think that's the worst of it. Don't be complacent! I fully expect that there are more waves of selling ahead. I continue to like many natural resource stocks, but many other U.S.-based companies look vulnerable to additional sharp declines.
Best wishes,
By Larry Edelson
http://www.marketoracle.co.uk/Article532.html
Tag :
Malaysia
