“We see a lot of opportunities in Malaysia. They are benefiting, by the way, from what’s happening in the Asean region.
“Trade between Asean countries is growing. And Malaysia is right in the centre of that region and will benefit from the growth that we are seeing in Indonesia as well,” said Templeton Emerging Markets Group executive chairman Mark Mobius.
Mobius said emerging markets had surged ahead and were outperforming developed countries and that the trend would continue.
As for some of the headwinds in the region such as the slowdown in China’s economy and the social unrest in Thailand, he said each of these situations in Asia were unique.
“If you turn to Thailand, you would notice that despite all the political rhetoric and political upheavals, its stock market continued to rise,” he said.
Mobius said there were a number of other political events taking place in Asia that would take many years to resolve but it really would not have any impact economically.
“The biggest risk, of course, is the fear of volatility. But volatility itself is not a problem. In fact, it is an opportunity because if you have very volatile stocks, you have an opportunity to buy at low points and hopefully sell at high points.
“We feel that it is best to invest in good mutual funds with good diversification, particularly in emerging markets, to preserve capital,” he added. — Bernama