KUALA LUMPUR :
- The ringgit, which had fallen more than 15% against the US dollar since January 2015, has made Malaysia very attractive now, says Mark Mobius .
- Mobius, who is Templeton Emerging Markets Group’s executive chairman also noted that Malaysia’s GDP growth has been very good.
- He said on Tuesday while the country’s foreign reserves have came down it was still at a good level while its public debt level was manageable.
- At midday, the ringgit was at 4.1240 compared with the previous close of 4.1059 following the decline in crude oil prices. Brent crude fell 33 cents to US$39.20 a barrel.
- However, year-to-date, the ringgit has strengthened to 4.16% against the greenback.
- Mobius also pointed out emerging markets (EM) are at a “turning point” with funds expected to flow back into EMs.
- He said fund managers were “underweight” on EMs and it was now at a turning point and prices could jump rapidly, adding that EMs were in “very good shape”.
- On China, Mobius said while China’s growth was decelerating, it was still an enormous economy. He added China’ services sectors were now powering the economy.