Malaysian economy offers bright spot amid global slump

With the outlook for 2012 shrouded by persistent worries about the debt crisis in Europe and a slowdown in China, pockets of opportunity may be found in smaller emerging markets in Asia.
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The sun is shining in Kuala Lumpur, despite storms in Europe (AFP)
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<div style="text-align: left;"> The sun is shining in Kuala Lumpur, despite storms in Europe (AFP) </div>

While the rest of the world was worrying about Europe in 2011, Southeast Asian stock markets quietly booked respectable gains, led by the Philippines, Indonesia and Malaysia.

Investors will undoubtedly continue to favour China and India for some time, but there are now also signs that they are exploring opportunities elsewhere in Asia, and particularly in Southeast Asia.

The outlook is generally positive throughout the region, but Credit Suisse economist Kun Lung Wu wrote in a report this month that Malaysia is likely to continue outperforming its neighbours during the next couple of quarters assuming that a break-up of the eurozone can be avoided, or least postponed...

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