Upside Potential For Malaysia Is Not A Given, Says HSBC

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The laggard argument to reposition part of asset allocation to Malaysia might be a mistake, according to HSBC’s strategists. Investors should actually be looking at more fundamental drivers to reconsider their exposure to the Asian economy, such a rising commodity prices, increased China investments in the region and political upside risk.

Despite those positive drivers, HSBC prefers Singapore and the Philippines to Malaysia.

The reason is that there are powerful dragging factors also at play, including political uncertainty, but also weak earnings growth and high valuations.

Source: HSBC