Local stock market lacks ‘lustre’ compared to others, says Rafizi

 

There are no quick fixes for the local stock market to yield positive results, according to Rafizi Ramli.

KUALA LUMPUR: The Malaysian stock market does not carry the same “lustre” as its counterparts in other countries, says economy minister Rafizi Ramli.

Rafizi said the stocks that dominate Bursa Malaysia reflect the country’s past economic successes rather than a “promise of an exciting future” for investors.

Speaking at the launch of Invest Fair 2023 here today, he said the country must prioritise technological advancement and innovation if its stock market wished to lead the region again.

However, he noted that structural reforms, such as resource allocation to high-value and high-growth sectors as well as fiscal consolidation, were needed to yield positive results on Bursa.

Rafizi Ramli.

Rafizi said these structural reforms were crucial for companies listed on Bursa to be able to benefit from where the money was flowing and bring back investors in the long-term.

When asked about the FBM KLCI – which bucked the regional trend by closing 0.13% lower yesterday while almost all its counterparts rose following the resolution of the US debt crisis – Rafizi said the local stock market had a chance to perform better but stressed that it would not happen overnight.

He said he expected Asia to be the first beneficiary of the US debt crisis resolution given that there was “a lot of excitement” in the region for investment potential. - FMT