The surprise election result that ended the primacy of the Barisan Nasional alliance in Malaysia after 60 years in power will usher in a period of “significant change” and may slow down investment.
But the replacement of prime minister Najib Razak, who was associated with the scandal involving the 1MDB state fund, offers a chance to renew public faith in government, said Jan Dehn, head of research at emerging market investment firm Ashmore Group.
Mahathir bin Mohamad (pictured), the 92-year-old new leader, has the chance “to revamp the failing institutions in the country and to address some public grievances, including security, racial divisions and above all corruption”, said Dehn.
However, the leader has promised to remove a goods and services tax, a measure that ratings agency Moody’s has described as “credit negative”, as well as reintroduce fuel subsidies.
“In his previous tenure as prime minister (1981-2003), Mahathir oversaw the rapid modernisation of the economy and major infrastructure investment,” said Dehn, who added that “he also limited the independence of the judiciary and the traditional power of Malaysia’s royal family”.
©2018 funds global asia 
At times like these, HSBC Asset Management easily pivots towards emerging markets.
The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.
A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.
The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.
Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.
Shareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.
Robert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.
