Malaysia is one of the ‘seven emerging markets worth putting your money in’, reported a popular business publication, Fortune Magazine.
“In Malaysia, the incumbent (Barisan Nasional) government is trying to stay ahead of increased demand for change,” penned Ian Bremmer.
Bremmer wrote Prime Minister Datuk Seri Najib Tun Razak scrapped fuel subsidies and will enact a six per cent Goods and Services Tax in April to improve his government’s fiscal position.
He believed that Najib will likely accelerate his Economic Transformation Programme by introducing further tax incentives for foreign investors.
“Further liberalisation of the manufacturing and financial services sectors is likely as well.
“It is a fair bet that as growth tapers in China (and the impact of that slowdown is felt in Malaysia), Najib’s government will feel pressured to boost public spending on infrastructure, education and health care.
“That is a good thing, particularly if authorities, as expected, continue to advance a broad fiscal reform agenda, with support from the middle class, to balance the nation’s budget by 2020,” he wrote.
The other emerging markets that Fortune Magazine described as the ‘lucky seven’ are India, Indonesia, Mexico, Columbia, Poland and Kenya.
The full story is published in the February 2015 issue of Fortune.