Wee questions govt over continued foreign fund outflow

 MCA president Wee Ka Siong says the government must explain how it plans to restore foreign investors’ confidence in Bursa Malaysia.

MCA president Wee Ka Siong said about RM640 million in foreign funds flowed out of Bursa Malaysia in the first week of September, followed by another RM160 million in the second week.

PETALING JAYA:

MCA president Wee Ka Siong has questioned the government over the continued outflow of foreign funds from Bursa Malaysia, with foreign ownership of Malaysian equities falling to a record low of 18.1% in August.

Foreign institutional investors extended their net selling streak on Bursa to six consecutive weeks as of Sept 11, according to investment research firm MBSB Research.

In a TikTok video, Wee said the government must outline concrete measures to restore foreign investors’ confidence and stem the continued outflow.

“We cannot rely indefinitely on local institutions and government-linked funds to support the market while foreign investors continue to leave,” he said.

“A healthy stock market needs genuine investor confidence, not merely support from local funds.”

Wee said about RM640 million in foreign funds flowed out of Bursa in the first week of September, followed by another RM160 million in the second week.

He said the outflow was not a new problem, with net foreign fund outflows from Bursa amounting to about RM84.5 billion from the 14th general election in May 2018 until last week.

He said RM2.3 billion flowed out in 2023, followed by RM42 billion in 2024 and RM22.5 billion in 2025.

He said about RM5.3 billion had flowed out this year as of Sept 11. - FMT