Stock market in Malaysia: An emerging market case study

Abstract

In the last couple of decades investments in emerging markets has increased, in particular in the Asian region. The south East Asian crisis in the late 90´s affected the economies in that part of Asia severely. The differences in how the countries managed the crisis were substantially accordingly to Krugman. Malaysia in particular stood out with implementation of policies towards limitations of foreign capital in- and outflow, normally not conducive for a healthy investment climate. It is therefore interesting to analyze how the investment climate had evolved in Malaysia in order to make suggestions to possible investors whether or not the Malaysian market has become more attractive for investments. That’s the reason of this master thesis focus on the Malaysian stock market analyzed from the perspective of an international portfolio investor.