KUALA LUMPUR (July 25): The government's dedication to economic reforms and ongoing positive growth indicators continue to drive foreign buying in Malaysia’s stock market. 

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said this reflects investors' medium- and long-term confidence in the country.

"One of the reasons why the stock market is up is that it shows the confidence of our investors in the medium and long term, as well as showing that the government policies we have implemented so far are the right policies.

"At the same time, the economic overflow will be enjoyed by companies as well as the rakyat," he told reporters after the Malaysia Smart Manufacturing Awards 2023 event on Wednesday.

He said that according to the Department of Statistics Malaysia, Malaysia’s economy is estimated to have expanded by 5.8% year-on-year in the second quarter of 2024, up from 4.2% in the previous quarter.

The positive numbers signal a higher inflow of foreign funds into Bursa Malaysia, domestic direct investment as well as foreign direct investment, according to the minister.

Zafrul was commenting on a Bloomberg article noting that Malaysia's stock market is once again attracting global investors, attributed to the country’s potential for artificial intelligence (AI)-related services in the region.

The report said international funds had turned into net buyers of Malaysian equities this year, as Prime Minister Datuk Seri Anwar Ibrahim implemented policies to boost foreign investment in the semiconductor industry and AI data centres. 

https://www.theedgemarkets.com/node/720283