Both products have been listed on the SWX Swiss Exchange, and ABN AMRO will provide intra-day liquidity subject to a bid-offer spread.
The Malaysian stock market was up 33.2% in 2006 and year-to-date the market is up over 8%. However, ABN AMRO says most Middle Eastern investors have so far overlooked this investment opportunity and focused their attention on local stock markets or other emerging markets like Brazil, Russia, India and China (BRIC).
ôWe have been observing the Malaysian stock market for a while and believed that it was time to single out this country as a stand-alone investment opportunity," says Ruggiero Lomonaco, head of Islamic and Middle Eastern private investor products at ABN AMRO. "Malaysia is emerging as a favoured investment destination both for GCC entrepreneurs and financial institutions. It is also becoming a top holiday destination for GCC families who are coming back home with a tangible example of the pace of economic development.ö
MalaysiaÆs increasingly open fiscal policies, proximity to China, India and Far Eastern financial hubs, and the current demand for its commodities, have all contributed to investors' recent interest in the nation.
ôOur research analysts covering Malaysia pointed to us that the International Monetary Fund estimates that Malaysian GDP growth was 5.5% in 2006 and projects 5.8% for 2007, whilst inflation is set to fall over 1% to 2.5%. This positive performance is a result of policies that support economic recovery, such as increased public spending and monetary tightening. Also corporate tax is to be cut to 26% which is likely to make Malaysia one of AsiaÆs most competitive investment destinations,ö Lomonaco adds.
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