KL move on GLCs' foreign asset buys: low chances of success

Kuala Lumpur

AMID a deteriorating ringgit, Malaysia's move to halt government-linked companies (GLCs) and statutory bodies from buying overseas assets to stem the outflow of funds is expected to yield limited success but could result in reduced returns for shareholders as investment options narrow.

A treasury circular issued around Christmas informed GLCs and statutory bodies to postpone or hold off the purchase of foreign assets or investments for the time being and to prioritise domestic investments.