Malaysian economy to build back better based on right approach, attitude – Wahid Omar

KUALA LUMPUR: With the business-like approach and constructive attitude of the government, the business community, and the people, the Malaysian economy is expected to rebound and build back better and hopefully greener, said Economic Club of Kuala Lumpur (ECKL) advisory council chair Tan Sri Abdul Wahid Omar (pix).

Wearing his Bursa Malaysia hat, the chairman of the exchange noted that the country’s capital market had recovered significantly in August 2021 with foreign funds turning net buyers for the first time since June 2019 with a net inflow of RM1.1 billion.

Meanwhile, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.1 per cent month-on-month to end at 1,601 points during the same month.

“The improved sentiments were partly supported by resilient corporate profits for the second quarter of 2021, which increased 113 per cent year-on-year and three per cent quarter-on-quarter based on Maybank’s research universe,” he said in his speech at the one-day National Recovery Summit organised by KSI Strategic Institute For Asia Pacific today.

Abdul Wahid noted that similar positive sentiments were seen in the Malaysian bond market with foreign holding increasing by RM6.6 billion in August 2021, bringing the year-to-date net inflows to RM24.6 billion.

Last year, Bursa Malaysia had ben a great year, he shared, with business volume as measured by average daily trading value (ADV) doubling from RM1.9 billion to RM4.2 billion.

FBM KLCI increased 2.4 per cent to 1,627 points in 2020, the second-best performing market in the region.

“Business momentum continued into the first half of 2021 with ADV increasing to RM4.4 billion. But with worsening COVID-19 cases and prolonged movement control orders, the FBM KLCI declined by 5.8 per cent to 1,533 points as at June 30, 2021, making our market one of the least-performing markets in the region for the first half of 2021,” he said.

Meanwhile, the ECKL, according to the chair, welcomed yesterday’s announcement of the Klang Valley moving into Phase 2 of the National Recovery Plan (NRP) from tomorrow (Sept 10, 2021).

“As more economic activities are being permitted gradually in line with the NRP, the prospects of achieving four per cent Gross Domestic Product growth in 2021 will become clearer,” he added.

The NRP is a four-phase road map charting the way forward to return the nation to normalcy after the recent health and economic crisis caused by Covid-19.

Its successful implementation depends on a whole-of-nation and whole-of-society approach.

The National Recovery Summit aims to provide further information and clarification on the NRP and gather support from business, civil society, think tanks, experts, and academicians.- Bernama