Investors hesitant about Malaysia, say analysts

Kuala Lumpur

ANALYSTS have observed that international portfolio investors are appearing hesitant about Malaysia, whether it is because of its high rate of household debt, or the belief that lower oil revenue will hurt the country's ability to meet its fiscal deficit targets, or a combination of other reasons.

If investors considered November a horrible month - the benchmark KLCI lost 1.8 per cent and the FBM70, 3.9 per cent - December is not looking any rosier, even though window-dressing activities by funds usually add up to positive returns during the month, said MIDF Investment Research.