Foreigners pump US$12b into S-E Asian notes
Region has benefited from the US Federal Reserve's go-slow approach to raising interest rates, a stabilisation of China's economy and a recovery in commodity prices
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A MILITARY regime delaying elections, haircuts for foreign investors using local courts and a prime minister fighting a financial scandal are among risks that funds are looking past as they pile into South-east Asian debt.
Foreigners have pumped US$12 billion into Thai, Indonesian and Malaysian notes this year, more than twice as much as in 2015. Thailand, where Prime Minister Prayuth Chan-Ocha has not set a date for a vote two years after taking power in a coup, has lured the most inflows. Indonesia has reaped rewards from easing inflation, despite losses for foreign investors in two high-profile defaults. In Malaysia, a rebound in oil has offset concern over global probes into an investment company whose chief adviser is Prime Minister Najib Razak.
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