Posted by Hush77 > 2019-04-16 14:46 | Report Abuse

Hopes of luring back global investors to a battered stock market are dimming by the day for Malaysia's government. The benchmark FTSE Bursa Malaysia KLCI Index is down 14 per cent from a record in May 2018 and it's the worst major market in the world so far this year, having slipped 3.5 per cent. That's even amid a rally in global equities spurred by the Federal Reserve's dovish pivot and a potential trade deal between the US and China. The gloomy outlook for Malaysian stocks isn't likely to end anytime soon, says Samsung Asset Management Co. "Malaysia will likely disappoint over the next year because since the new government came in power in May 2018, it has been lowering public debt with fiscal tightening," said Alan Richardson, a regional fund manager at Samsung Asset in Hong Kong. "This will be the theme from May 2018 to May 2020". Euphoria about Malaysian stocks has faded after almost one year since Mahathir Mohamad's surprise election victory in May, as the new administration struggled to clean up government inefficiencies and corruption. Unfulfilled campaign promises partly due to the legacy it inherited have also hurt its popularity. The new administration last month lowered its 2019 economic growth forecast and has been on an austerity drive to rein in its budget deficit.