Wednesday, June 25, 2008

Malaysian stock market future?


With the political crisis looming in the governing party BN, many projects unveiled in the 9mp will not be materialize. The likelihood of project like the northen pipeline that span across the east and west is similar to the likelihood that the prosecution in the Altantuya murder case would call the 3 names revealed in the statutory declaration of Raja Petra (cousin of Sultan Selangor) to court.

With the rising consumer goods and the all time high inflation of ~7.5% (as real as it can be)... the malaysian people are struggling to cope with the daily expenses that seems to rise everyday from food to utility and other general necessities....

From foreign investors perspective, most of them that I know of have been shorting the market for the past few months now... and some even speculated a huge sell off in time to come... many have advised their clients to stay away from the Malaysia market in view of the current situation... while the new state government continue to clean up the administration and start a new beginining, can of worms are bound to be unveiled... that's a fact many would agree since the change in power seems to have caught the previous government by surprise... more revelation of misused of power by individuals elected by previous gov would mean better publicity for the new government called "Pakatan Rakyat".

For the next few years the Malaysian market will not be a good place for investment.... in a nut shell, the outlook is gloomy and uncertain... not a favourable place for investment for now...

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