Equity, bond markets to see robust growth, says Nor Mohamed

KUALA LUMPUR: Malaysia's equity and bond markets that showed encouraging performance last year, are expected to see robust growth in 2010.

Their strength was in line with economic growth not only locally but also globally, Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop said on Friday, Jan 8.

"Although there are some views that there could be a posibble double-dip, the main view is that 2010 is going to be a good year for the world, particularly countries around Malaysia," he told reporters at the graduation ceremony of the Native Remisier Development Programme here.

He said that last year, securities issuance had increased with the biggest funds totalling RM11.2 billion being raised through the relisting of Maxis Bhd.

In fact, several international firms had been approved for listing in Malaysia, he added.

Nor Mohamed said the Malaysian bond market, now the biggest in Asean, had returned active with issuances amounting to RM61.3 billion compared with RM56.3 billion in 2008.

"These developments reflect the return of investor confidence in the local capital market," he said.

He said investors with huge capital from China, India and Middle East had shown great interest to invest in the local market.

He said the government was aware that the 21st century was where China, India and other developing countries like Brazil would become more significant and powerful from the economic perspective.

"In fact, there is some calculation showing that by the year 2027 China will overtake United States as the biggest economy in the world," he said citing an investment bank's report.

Nor Mohamed said the global economy was experiencing a new era and this region was going to be most dynamic and robust.

The business community should take advantage of the country's position in the middle of this dynamic growth to help Malaysia become a developed nation by 2020, he said.

"The government will constantly find ways to profile Malaysia as a friendly country to investors domestically and internationally," he said.

Nor Mohamed said Malaysia had been investor-friendly for a long time and of course, there were one or two hurdles and irritants but the government would keep removing it when the opportunity came.

"Removing all bureaucratic constraints will make us more friendly, so we can grow together in a very competitive environment and we know that," he said.

Meanwhile, when asked about the review of toll charges for 10 highways including the North-South Expressway and Sprint Highway, he said: "Not yet. It is still under review, actively being looked into."

Maybank Investment Bank in a research note on Wednesday said that toll charges for the highways are due for review this month after a one-year delay. It also expected a decision to be made by end of January or early February. - Bernama