One look at the performance of
Malaysia's exchange traded fund (
is all you need to know that Malaysia has recovered well from the
global economic crisis. But, with a global economic slowdown
expected, as well as other policy concerns, it is imperative to
know the changes that are happening before investing in the
According to Ranjeetha Pakiam of Bloomberg
, Malaysia's exports grew at the slowest pace in the last seven
months due to concerns over Europe's debt crisis and an economic
slowdown in the United States and China, the latter two accounting
for Malaysia's biggest markets.
Despite Malaysia's slow growth, exports still rose 17.2% in June
from a year earlier. But, the slowdown has led analysts to believe
that for the time being, interest rates will remain at current
levels. The benchmark interest rate is at 2.75%. [
Malaysia ETF: A Shot at Becoming a Darling.
In order to build upon some of its strengths, Malaysia's
government is trying to develop synergies with India and Singapore.
According to the GovMonitor
, Prime Minister Najib Razak announced the New Economic Model,
which outlines the approach Malaysia will take toward becoming a
developed country by 2020. [
Asia ETFs: Developed or Emerging.
In relation to
, the plan addresses how both countries can collaborate to make
each other more competitive in the global economy. The
"inter-connectedness, in terms of geographical proximity,
established business relations, and familiarity with investing and
operating in each other's country, is a comparative advantage" that
can be exploited for mutual benefit.
In relation to India,
Mukul G Asher of DNA reports
that the New Economic Model will encourage
business with India
and Indian immigrants, who are currently underrepresented in the
"As Indian ethnic groups in Malaysia lags substantially behind
other groups, improving their status, even in absolute terms, will
enable Malaysia to realize its development goals, while enhancing
possibilities for cooperation between Malaysian and Indian
For more stories on Malaysia, visit our
. There are several ways to play the shifts in the Asian economy,
including with these three funds:
iShares MSCI Malaysia Index Fund (
: up more than 16% YTD (August 6)
iShares MSCI Singapore Index Fund (
WisdomTree India Earnings Fund (NYSEArca: EPI)
Sumin Kim contributed to this article.