Best of the Week
Most Popular
1. Dollargeddon - Gold Price to Soar Above $6,000 - P_Radomski_CFA
2.Is Gold Price On Verge Of A Bottom, See For Yourself - Chris_Vermeulen
3.Dow Stock Market Trend Forecast 2018 - Nadeem_Walayat
4.Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - P_Radomski_CFA
5.Why The Uranium Price Must Go Up - Richard_Mills
6.Dow Stock Market Trend Forecast 2018 - Video - Nadeem_Walayat
7.Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future” - GoldCore
8.More Signs That the Stock Market Will Rally Until 2019 - Troy_Bombardia
9.It's Time for A New Economic Strategy in Turkey - Steve_H_Hanke
10.Fiat Currency Inflation, And Collapse Insurance - Raymond_Matison
Last 7 days
Precious Metals Sector: It’s 2013 All Over Again - 19th Sep 18
US Dollar Head & Shoulders Triggered. What's Next? - 19th Sep 18
Prepare for the Stock Market’s Volatility to Increase - 19th Sep 18
The Beginning of the End of the Dollar - 19th Sep 18
Land Rover Discovery Sport 'Approved Used' Bad Paint Job - Inchcape Chester - 19th Sep 18
Are Technology and FANG Stocks Bottoming? - 18th Sep 18
Predictive Trading Model Suggests Falling Stock Prices During US Elections - 18th Sep 18
Lehman Brothers Financial Collapse - Ten Years Later - 18th Sep 18
Financial Crisis Markets Reality Check Now in Progress - 18th Sep 18
Gold’s Ultimate Confirmation - 18th Sep 18
Omanization: a 20-year Process to Fight Volatile Oil Prices  - 18th Sep 18
Sheffield Best Secondary Schools Rankings and Trend Trajectory for Applications 2018 - 18th Sep 18
Gold / US Dollar Inverse Correlation - 17th Sep 18
The Apple Story - Trump Tariffs Penalize US Multinationals - 17th Sep 18
Wall Street Created Financial Crash Catastrophe Ten Years Later - 17th Sep 18
Trade Wars Are Going To Crash This Stock Market - 17th Sep 18
Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - 17th Sep 18
Financial Markets Macro/Micro View: Waves and Cycles - 17th Sep 18
Stock Market Bulls Prevail – for Now! - 17th Sep 18
GBPUSD Set to Explode Higher - 17th Sep 18
The China Threat - Global Crisis Hot Spots & Pressure Points - 17th Sep 18 - Jim_Willie_CB
Silver's Relationship with Gold Reaching Historical Extremes - 16th Sep 18
Emerging Markets to Follow and Those to Avoid - 16th Sep 18
Investing - Look at the Facts to Find the Truth - 16th Sep 18
Gold Stocks Forced Capitulation - 15th Sep 18
Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - 15th Sep 18
Trading The Global Future - Bad Consequences - 15th Sep 18
Central Banks Have Gone Rogue, Putting Us All at Risk - 15th Sep 18
Gold Price Seasonal Trend Analysis - 14th Sep 18
Growing Number of Small Businesses Opening – and Closing – In the UK - 14th Sep 18
Gold Price Trend Analysis - Video - 14th Sep 18
Esports Is Exploding—Here’s 3 Best Stocks to Profit From - 13th Sep 18
The Four Steel Men Behind Trump’s Trade War - 13th Sep 18
How Trump Tariffs Could Double America’s Trade Losses - 13th Sep 18
Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - 13th Sep 18
Trading Cryptocurrencies: To Win, You Must Know Where You're Wrong - 13th Sep 18
Gold, Silver, and USD Index - Three Important “Nothings” - 13th Sep 18
Precious Metals Sector On a Long-term SELL Signal - 13th Sep 18
Does Gambling Regulation Work - A Case Study - 13th Sep 18
The Ritual Burial of the US Constitution - 12th Sep 18
Stock Market Final Probe Higher ... Then the PANIC! - 12th Sep 18
Gold Nuggets And Silver Bullets - 12th Sep 18
Bitcoin Trading - SEC Strikes Again - 12th Sep 18

Market Oracle FREE Newsletter

Trading Any Market

Investing in Malaysia and my take on the Stock Market Falls

Stock-Markets / Emerging Markets Mar 15, 2007 - 09:03 AM GMT

By: Money_and_Markets

Stock-Markets

I'm writing to you from the 33rd floor of the Kuala Lumpur Hilton, in the capital and largest city of Malaysia. One of three main Malaysian territories, metropolitan Kuala Lumpur is home to 6.9 million of Malaysia's 26.6 million citizens.

I've been here in the city, which locals call “KL,” for three days. Let me sum up what I've observed: KL, and Malaysia in general, are hotter than hot! And I don't mean just the weather, which is 97 degrees and humid. I'm talking about the country's economy.

Chic, vibrant, youthful, exciting, buzzing — those are just some of the words I'd use to describe the scene here. Like other Asian cities, KL is a melting pot. There are people of original Malay descent, along with Chinese, Indians, and other indigenous ethnic backgrounds.


Islam is the predominant religion in Malaysia.. As I walked around the city, I saw devout Muslims chatting on their cell phones, working wirelessly on their laptops, and shopping for luxury Western goods in droves. From Louis Vuitton to Harry Winston Jewelers, the luxury shops of the famous Golden Triangle shopping area in KL are jam-packed seven days a week.

Another thing that really caught my attention: Almost everyone here speaks English, largely due to the British occupation from 1795 to 1957, after which the independent Malaysia was formed. This widespread use of English is a huge plus, especially when you put it into the context of economic growth.

The country's largest industry is manufacturing, which accounts for 30.7% of the economy. Malaysia boasts booming auto manufacturing businesses, vibrant furniture factories, and thriving electronics and semiconductor chip makers.

Tin and base metals account for another 15% of the economy, and the country's financial services industry now comprises another 16%. Other important areas are agriculture (palm oil and rubber), trade, construction, and tourism.

Malaysia's economy expanded at a very healthy 5.9% last year, more than twice as fast as the U.S. economy. With only $39 billion in gross domestic product, the country is tiny by comparison, but its GDP looks set to keep soaring in the years ahead. Foreign direct investment in Malaysia is also exploding higher, reaching a record $5.7 billion in 2006, up more than 12% from 2005.

Why Malaysia Will Be One
Of the Fastest-Growing Islamic
Economies in the World

Malaysia clearly has an economic advantage because of its vast natural resources in agriculture, mining, and oil. It also has strong roots in British law and that large English-speaking population that I mentioned.

But Malaysia has another unique advantage that I believe will help push its economy ahead at solid growth rates for several more years: It is home to the largest Islamic capital markets in the world!

The Malaysian government has always been sensitive to the Islamic religion, and, unlike many other Muslim countries, it has kept the religion's principals in mind when it comes to monetary matters.

Case in point: Malaysia is the first Islamic country to have its own Islam-based stock exchange, the Bursa Malaysia Berhad. This subset of the country's main stock market was launched on March 18, 2005.

The exchange lists equities, derivatives, and offshore markets — but only those that adhere to Islamic tenets. For example, companies cannot actively seek revenues from interest income, gambling, life insurance, tobacco, or alcohol.

In short, Malaysia has done what no other country has done — accommodated the tenets of Islamic law in its economy and its stock market by setting up separate listings. These companies allow the devout to invest with a conscience and help foster the Islamic economy.

This Malaysian system wouldn't work in many other areas of the world. But it gives tens of millions of Muslim investors a unique solution to today's rapidly changing financial markets.

There are over 1.5 billion Muslims in the world today, representing 24% of the world's population. Key developments like Malaysia's Bursa Berhad help to bring them into modern society while addressing their religious needs.

My view: Malaysia's economy is poised for loads more growth in the years ahead. Its stock markets have recently pulled back, and now look very attractive to me.

Meanwhile ...

My Signals for U.S. Markets Remain In Sell Mode!

Please don't get me wrong ... I love the U.S. But I'm also a realist, and today's economic growth is not going to be found in the States.

Indeed, as I noted two weeks ago, the U.S. economy seems headed for a recession. It's been floating on a magic carpet ride for the past three years, via artificially low interest rates, strong real estate prices, and blind optimism.

I also told you that my indicators strongly suggested a Dow close below 12,242 — which we got on February 27 — would be an important sell signal, indicating the potential for further sharp declines in many U.S. stocks.

We saw another wave of selling on Tuesday, but I don't think that's the worst of it. Don't be complacent! I fully expect that there are more waves of selling ahead. I continue to like many natural resource stocks, but many other U.S.-based companies look vulnerable to additional sharp declines.

Best wishes,

By Larry Edelson

P.S. Continue following my recommendations in Real Wealth Report . If you're not yet a subscriber, you can join now and get a one year subscription for just $99 . The important March issue goes to press this Friday. Get on board for a full update on why I think you must own gold!

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.MoneyandMarkets.com


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Graham
12 Jul 09, 11:15
Malaysian bursa

Larry, not sure whether the Malaysian bursa runs on such strict Islamic lines as you suggest. Guinness Anchor Berhad & Carlsberg Brewery Malaysia Berhad are both listed beer businesses in Malaysia.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules