Malaysia (Commonwealth Union)_ According to Datuk Dr Nazri Khan, Chief Economist of Inter-Pacific Asset Management (IPAM) and an independent fund manager, Malaysia’s economy is poised for substantial growth in 2024, driven by a notable improvement across all sectors. Anticipating growth between 4.5% and 5%, Nazri expressed optimism, envisioning this to be one of the most robust economic expansions in the last five years. Current indicators suggest enhanced global trade, particularly in exports and foreign direct investment (FDI), alongside sustained private investments.
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Nazri stated, “We are optimistic that the economy is going to grow between 4.5% and 5%, at the higher end of 5%. It could be one of the best economic growths that we have achieved in the last five years.” Nazri highlighted positive market movements across various sectors, including the electrical and electronics (E&E) and technology sectors, with the anticipation of artificial intelligence (AI) influencing these areas. The construction and property sectors have also seen significant growth. In the plantation sector, Nazri predicted an increase in crude palm oil prices to RM4,000 per tonne in the coming year.
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Addressing the local equity market, Nazri expressed optimism for Bursa Malaysia in 2024, fueled by growing foreign participation. Noting signs of stock accumulation and potential market bottoms, he cited increased foreign participation as a positive indication of foreign investor interest, particularly in large-cap stocks. He stated, “We see signs of (stock) accumulation. We can say that there are patterns on the stock market and that it may have bottomed. We are optimistic on Bursa Malaysia as we see FDI come in and that foreign participation has gone up, which could be a sign that foreign investors are (interested to invest) on the exchange, maybe not so much on the initial public listing, but on the large gap stocks.”
As of now, the FBM KLCI is within the 1,460 to 1,470 range, and Nazri hoped for a breakthrough to 1,500 by the end of the month, aiming for a high of 1,900. Additionally, he identified the banking sector as the strongest, followed by telecommunications, with expectations of the technology sector strengthening in the future. Looking ahead, IPAM plans to partner with a US company to introduce AI technology into its system in March 2024. This initiative aims to provide investors with informed insights into the stock market, aiding in decision-making by identifying undervalued stocks and predicting potential future risers. Nazri emphasized the technology’s ability to simplify investment processes, although he did not claim absolute accuracy.
Nazri stated, “Investors will be able to make more (informed) investment decisions with the help of this upcoming AI system in identifying stocks that are trading low and predicting which stocks have the potential to rise in the future. So this AI will let us know; it can read pattern charts and fundamental patterns. We won’t say this AI is accurate, but technology can simplify our process to make the right investment.” Lastly, Nazri cautioned the public against falling prey to illegal investment syndicates or online scams misusing his name, photos, and videos, urging vigilance in financial dealings.
