The Claim: "Malaysian market under Anuar Ibrahim is as bullish as during Najib Razak's time."
Introduction
The assertion that the Malaysian market under Prime Minister Anwar Ibrahim is experiencing a bullish trend comparable to that of former Prime Minister Najib Razak's tenure has been circulating in various discussions. This claim invites scrutiny, especially considering the contrasting economic contexts and policies of both leaders. The following analysis aims to unpack the current state of the Malaysian market under Anwar Ibrahim and compare it to the period during Najib Razak's administration.
What We Know
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Market Performance: Reports indicate that Malaysia's stock market and the ringgit were among the top performers in Asia for 2024, attributed to government-linked companies and favorable global trends 1. However, this assertion is juxtaposed against significant foreign capital outflows, with nearly $1 billion withdrawn from the stock market in 2023 alone, contributing to a total of $11 billion over the past five years 2.
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Investment Growth: Anwar Ibrahim has highlighted a 23% increase in approved direct investments since 2022, suggesting a positive trend in domestic equity markets 3. This contrasts with earlier reports indicating that the Malaysian stock market was struggling, with the ringgit performing poorly against other currencies 5.
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Government Stability: Analysts have noted that perceived governmental stability under Anwar Ibrahim has positively influenced market sentiment 4. However, this stability is challenged by ongoing economic pressures and a declining ringgit, which has been described as one of the worst-performing currencies in Asia 5.
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Economic Projections: The World Bank downgraded Malaysia's economic growth forecast for 2023 from 4.3% to 3.9%, indicating potential economic challenges ahead 8. This contrasts with the more optimistic projections during Najib Razak's administration, which were often buoyed by high commodity prices and robust foreign investments.
Analysis
The claim that the Malaysian market under Anwar Ibrahim is as bullish as during Najib Razak's time is complex and multifaceted.
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Source Reliability: Sources such as the RSIS 1 and Bloomberg 2 provide data on market performance but may have biases based on their institutional affiliations. RSIS is a think tank that may have specific policy perspectives, while Bloomberg is a financial news service that may focus on market-driven narratives.
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Conflicting Evidence: While some sources report a bullish trend, others highlight significant challenges, including substantial foreign capital outflows and a depreciating currency 5. This discrepancy raises questions about the overall health of the market and whether the bullish claims are reflective of a broader, sustainable trend or merely short-term fluctuations.
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Methodological Concerns: The methodologies used to assess market performance can vary significantly. For instance, the metrics for defining "bullish" could include stock index performance, foreign investment levels, or currency strength. Without a clear definition, comparisons between the two administrations may lack rigor.
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Contextual Factors: The economic context during Najib Razak's tenure was characterized by high commodity prices and significant foreign direct investment, which may not be directly comparable to the current economic landscape under Anwar Ibrahim, which is marked by different global economic conditions and domestic challenges.
Conclusion
Verdict: Mostly False
The claim that the Malaysian market under Anwar Ibrahim is as bullish as during Najib Razak's time is assessed as "Mostly False." Key evidence supporting this verdict includes the contrasting economic conditions, significant foreign capital outflows, and a depreciating ringgit that challenge the notion of a robust market under Anwar Ibrahim. While there are indicators of growth, such as increased direct investments, these are tempered by broader economic challenges and a lack of sustained positive performance compared to Najib Razak's tenure.
It is important to note that the comparison between the two administrations is complicated by differing global economic contexts and domestic policies. The evidence available presents a mixed picture, indicating that while there are some positive trends, they do not fully support the claim of a bullish market comparable to the past.
Moreover, the limitations in the available evidence, including potential biases in source reliability and varying methodologies for assessing market performance, highlight the need for caution in drawing definitive conclusions. Readers are encouraged to critically evaluate information and consider the nuances involved in economic assessments.
Sources
- Prime Minister Anwar Ibrahim at Mid-Term - RSIS. Retrieved from https://rsis.edu.sg/rsis-publication/rsis/prime-minister-anwar-ibrahim-at-mid-term/
- Bloomberg: Malaysia Stock Market & Ringgit Under Anwar Is Among The ... Retrieved from https://www.thecoverage.my/4202/malaysia-stock-market-ringgit-performance
- Anwar lauds Malaysia's economic numbers as domestic ... Retrieved from https://www.malaymail.com/news/money/2024/07/09/anwar-lauds-malaysias-economic-numbers-as-domestic-equity-market-cap-hits-record-breaking-rm2t/143170
- Malaysia's stock market having its moment in the sun, but ... - CNA. Retrieved from https://www.channelnewsasia.com/asia/malaysia-stock-market-rally-klci-index-anwar-ibrahim-geopolitical-tensions-4735266
- Flagging ringgit bodes ill for Malaysia's Anwar - Asia Times. Retrieved from https://asiatimes.com/2023/07/flagging-ringgit-bodes-ill-for-malaysias-anwar/
- Anwar set to tackle ringgit and stock market decline in tomorrow's ... Retrieved from https://klse.i3investor.com/web/blog/detail/savemalaysia/2023-06-18-story-h-267699718-Anwar_set_to_tackle_ringgit_and_stock_market_decline_in_tomorrow_s_anno
- PM dismisses claims of investor loss ... Retrieved from https://www.nst.com.my/news/nation/2025/02/1174388/pm-dismisses-claims-investor-loss-confidence-over-royal-addendum
- Malaysian PM Anwar Ibrahim struggles to boost economy a year after victory. Retrieved from https://www.ft.com/content/46c7b3fd-8e16-419f-823b-72f953785c76
- Anwar faces hard policy decisions as popularity dips. Retrieved from https://klse.i3investor.com/web/blog/detail/savemalaysia/2023-11-24-story-h-214216937-Anwar_faces_hard_policy_decisions_as_popularity_dips
- Anwar Ibrahim returns to a changed economy. Retrieved from https://eastasiaforum.org/2023/02/03/anwar-ibrahim-returns-to-a-changed-economy/
