Equities And Forex: Watch Politics And Inflation

June 2008 | Market Strategy

Rapidly rising inflation and a swiftly deteriorating political climate pose significant downside risks to Malaysian equities and the MYR over the medium term. We caution that both asset classes - which to date have held up relatively well - now look set for a period of weakness, as price growth takes off and Prime Minister Abdullah Ahmad Badawi comes increasingly close to a premature exit from office.

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