Post elections, the Malaysian onshore financial markets remain stable and orderly, and continue to function in an effective manner, facilitating smooth intermediation activities among market participants. Overall, investors’ sentiments and reactions have been positive.
“Since the re-opening of the onshore Ringgit market on Monday, the Ringgit traded close to its last traded price prior to the general election, hovering around 3.95, after an initial opening of 3.97, signalling continued investor’s confidence on the new Malaysian Government”, as commented by Dato’ Lee Kok Kwan, President of Financial Markets Association of Malaysia.
The onshore FX market remains active, recording a daily average volume of above USD15 billion after the election. Other key domestic markets including the government bonds, corporate bonds and money markets remain supported by investors as evidenced by the strongest year-to-date bid-to-cover ratio of 3.4 times for the re-opening of 7-year Malaysian Government Investment Issue (MGII). Financial intermediation functions continue to be undisrupted backed by ample liquidity in the markets.
Malaysia’s economic fundamentals remain strong, reinforced by current account surplus, strong reserves position, low level of external indebtedness and a well-capitalised banking system.
The Financial Markets Committee will continue to monitor these developments and work with financial market participants, including taking proactive measures, to address any further volatility that could emerge from the transition process to ensure orderly functioning of our financial markets.