PETALING JAYA: The market has taken into account the potential downside risk of global growth on Malaysia’s economic recovery according to Maybank Investment Bank (IB) Research.
The research house said this is reflected in the MSCI Malaysia Index, which is designed to measure the performance of the large and mid cap segments of the local market, which is down 3.9% compared with MSCI Asean Index which grew by 2.8% on a three-month basis.
Maybank IB Research now sees a 58% probability of the US economy going into a recession over the next 12 months, which will have a negative bearing on the recovery theme of Asean exporters like Malaysia, Singapore, Thailand and Vietnam.
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