Tan Teng Boo, of iCapital.biz believes that the future for Malaysian equities looks bright despite challenges from pandemic recovery, geopolitical tensions, political turmoil, soaring global inflation, volatile exchange rates and extreme climate pattern.
“Fundamental and structural changes will indeed take time, but the wheels of positive change have already been set in motion. Malaysia’s economy and politics are gradually transforming as the negative influence from the old political leadership is no longer lingering,” said Tan.
Expanding on this, Tan explained that Malaysia, under Prime Minister Anwar’s administration, has done the right thing by remaining neutral amid the escalation of the US-China rivalry. “Why must we choose, we want to be friends with everybody. As an open economy, Malaysia needs to be friends with everybody,” said Tan.
Moving forward, Tan, who has more than five decades of investment experience, sees a good chance for Malaysian stocks to perform better than what they have delivered in the past. “Bursa Malaysia has witnessed many short-lived bull markets, but very few investors know that Bursa Malaysia had only one sustained bull market, from 1974 to 1981. I am the only living fund manager in Malaysia who experienced this real bull market. After trapping investors in bear market rallies since 2014, Malaysia is now at a critical juncture. For the first time in many years, I have turned more optimistic about Malaysia’s future. Thanks to the convergence of many positive factors, there are now reasons to buy Malaysian stocks for the long term even though we are still facing many challenges,” said Tan.
“Moreover, there is no need to exactly time the market. Picking the right stocks and investing for the long-term is a better strategy,” said Tan.
Teng Boo will further detail his views on Malaysia during Capital Dynamics and icapital.biz Berhad’s 2023 Investor Day, slated to be held on Sunday, November 5 at the Kuala Lumpur Convention Centre.
Tan has a track record of spotting and seizing investment opportunities just when everything seems doom and gloom. In the wake of the 1987 Black Monday market crash, as fears of a looming Great Depression gripped investors, Tan established Capital Dynamics Sdn Bhd. The firm became Malaysia’s first independent investment adviser, spawning the Capital Dynamics group of investment firms in Hong Kong, Sydney, Singapore, Shanghai and Malaysia.