00:00Huge question. I mean, how are international investors viewing Malaysian assets right now?
00:03The big question really is whether those gains are sustainable.
00:07Well, you're right. I mean, when you actually look at what's powering the economic growth,
00:12I mean, the GDP is actually quite stable. In fact, when you actually look at it,
00:16people are not just looking at growth, people are looking at stability and predictability.
00:21So I guess as far as the country is concerned, if they actually show execution,
00:24if they actually show stability of policy and the momentum actually is going pretty well,
00:30I think you're going to see that continue much longer.
00:32So the continued chaos in the world, in the developed world in particular,
00:35benefiting emerging markets like Malaysia?
00:38Well, I think now the scarcity of a product here is stability rather than anything, right?
00:43So where do you see the KLCI going? How much more upside from here?
00:48And when it comes to the currency, can it strengthen further?
00:51Well, as far as KLCI is concerned, I think there's a role to play for people like us,
00:57you know, capital investors. We can be active market players to see it grow further.
01:02We've seen that in Japan. We've seen that in Korea, where if we actually try to be a bit more active
01:07and trying to get the companies to improve their ROEs and profitability and earnings,
01:11I think there's more room to grow.
01:12And for the ringgit?
01:14The ringgit, I think we'll see a bit more strengthening and really looks at the U.S. dollar.
01:18And I think the outlook is U.S. dollar would reduce.
01:21Come on, look into the crystal ball. Give us some projections for the end of 2026.
01:26Where do you see the ringgit headed towards?
01:29I like to quote some of the analysts and they're looking at four or even depending below four.
01:38Of course, lots of headwinds right here in the world today.
01:42We talk about how, you know, they are shifting alliances and geopolitical tensions are rising.
01:48How might that play out when it comes to emerging markets like Malaysia,
01:52considering the fact that when there is volatility, when there is a surprise,
01:57investors tend to make an exit from EMs first?
02:01Well, I think you're right.
02:04I think emerging markets tend to have capital coming in and out faster.
02:07And that's why you see that.
02:08But I think people have to look at the fundamentals.
02:10Like I said before, what it scares today is that stability.
02:14And when you look at emerging markets, especially in Asia,
02:17that continued growth of about 4% to 5% across all the countries.
02:21And you can see the demographics, which is a lot younger.
02:24So you do see that long earnings growth going forward.
02:27So I think from that perspective, I think it's a good market to be in.
02:30What's your strategy for 2026?
02:33We know that you're 90% equities, 10% real assets.
02:36Any, I guess, any reason to make shifts?
02:40At the moment, I think what we try to do is we follow developed markets.
02:45So, for example, we try to hug the beta for developed markets.
02:48Emerging markets, we have that as well.
02:50Being a sovereign wealth fund for the country, we're about 60% in Malaysia.
02:55And for that, I think it tends to be a bit more strategic.
02:57Again, what we are looking at are the ones where it could actually benefit from all this reconfiguration of the market.
03:03And that is looking at policy changes when it comes to semiconductor supply chain, infrastructure to capture growth within the region,
03:11whether it's connectivity, energy transition, as well as digital.
03:14What's especially attractive this year that's different from the last maybe 12, 24 months?
03:19I think what is attractive is with all this chaos that you see, people are trying to look at markets in order to get that stability, weakening of ringgit.
03:28So people are looking at metals, looking at hard assets, looking at anything which might benefit from policy changes that countries are doing as a result of this change.
03:38We know that Malaysia wants to be a big player in rare earths.
03:41We have the promises saying that it wants Kizana to lead in terms of the projects and ventures.
03:48Where are you with that?
03:49Well, first of all, that is correct.
03:51That's something we're looking at.
03:52But I think I mentioned to you this last time, it takes time to really understand the reserves available that can actually be accessed.
04:01Because a lot of the rare earth minerals are in protected forests, for example.
04:06And, of course, the environmental impact needs to be looked at.
04:09And that is something which the country is currently looking at.
04:11Are you in conversations with China?
04:13Because there are talks about joint ventures.
04:15We're open with speaking to anyone.
04:17What is the goal in the end?
04:19It's going to take time.
04:21Say, in five years, where do you see Malaysia in this rare earth space?
04:29Look at the country, for example, right?
04:31Now, the country has this concept where, from a trade perspective, it's a critical part of the world's supply chain.
04:39And it has to be neutral or central to trade as well as to supply chains.
04:46So it has to have, you know, work well with China, work well with the U.S., work well with the rest of the world.
04:50And I think what we'd like to see is, at least for this rare minerals, is for there to be trade with all countries.
04:58Fasal, just one final question.
04:59I mean, we're talking about shifting alliances and uncertainties.
05:03What's top of mind for, I guess, CEOs like yourself here in Davos?
05:08Well, looking at where the momentum is really going, I think the underlying current is important to identify and know.
05:17We have seen geopolitical changes like Liberation Day, even in Venezuela.
05:22But markets either have come back or not reacted inside identifying that momentum.
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