Malaysian Economy Minister Rafizi Ramli has expressed concerns about the state of the country’s stock market, stating that it lacks the same appeal as stock markets in other countries. According to Rafizi, the dominant stocks on Bursa Malaysia reflect past economic successes rather than offering an enticing prospect for future investors.
During the launch of Invest Fair 2023 in Kuala Lumpur, Rafizi emphasized the need for Malaysia to prioritize technological advancement and innovation if it wants its stock market to regain its leadership position in the region. However, he also acknowledged that achieving positive results on Bursa would require structural reforms, including resource allocation to high-value and high-growth sectors, as well as fiscal consolidation.
Rafizi stressed the importance of these reforms to enable companies listed on Bursa to capitalize on investment opportunities and regain the trust of long-term investors. He acknowledged that while the FBM KLCI (Kuala Lumpur Composite Index) had experienced a 0.13% decrease while its regional counterparts rose following the resolution of the US debt crisis, there was still potential for the local stock market to perform better. However, he cautioned that significant improvements would not occur overnight.
Rafizi anticipated that Asia would be the first region to benefit from the resolution of the US debt crisis, as there is currently a great deal of excitement and potential for investment in the region. By implementing structural reforms and fostering technological advancements, Malaysia aims to position itself as an attractive investment destination, thereby rejuvenating its stock market and attracting both domestic and foreign investors.
The economy minister’s remarks shed light on the challenges and opportunities faced by Bursa Malaysia. As the nation strives for a promising future, it will need to strike a balance between preserving past economic successes and embracing innovation to ensure sustainable growth and investor confidence in its stock market.