MALAYSIA’S equity market recorded around 9% return, the highest among Asean nations, according to the world’s leading financial institution, J.P. Morgan.

In comparison, the overall ASEAN stock market as measured by MSCI ASEAN has declined by 4%.

J. P. Morgan said policy reforms, investment in data centres and infrastructure construction were the main factors driving Malaysia in line with the outlook for 2024, but it was growing at a much stronger rate than expected.

“All this, combined with domestic fund withdrawals led to a significant revaluation of the KLCI/MSCI Malaysia (MXMY).

“The placement of foreign investors in Malaysia is still low, but shows the potential for a greater increase.

“We are increasingly positive on Malaysia’s equity outlook based on these driving factors and raised the base target of the KLCI to 1,650 from 1,500 previously,” they said according to the research note.

The government’s commitment to long-term economic stability, as reflected in the Civil Economy framework, the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Plan (NETR), provides a solid foundation for sustainable development.

Malaysia’s policy reforms are expected to boost the equity market, reducing the risk of sudden policy shifts and encouraging long-term planning and investment. — TMR