KUALA LUMPUR (July 12): A clearer direction from the Malaysian government on its fiscal policies is likely to bring foreign investors back into the market, Standard Chartered said.

Standard Chartered head investment strategist Manpreet Singh Gill said the government will have to be more transparent on its stance on the nation's fiscal deficit and what policymakers will do to manage it, even as ongoing structural changes are positively viewed by foreign investors.

“As a foreign investor in the bond market, more visibility is a positive sign if you’re looking to buy government bonds,” Manpreet said here today at a media briefing on market outlook.

Standard Chartered head of managed investment and product management Danny Chang offered his view on Malaysian equities. Chang said while local equities look attractive from a dividend yield perspective, they are also trading at premium valuations versus Asian stocks.

A key factor Standard Chartered advised its clients to focus on when investing, is the strengthening of the US dollar in the near term. 

At 11:54am today, the ringgit weakened to 4.0385 against the US dollar. Over the last one year, the exchange rate was between 3.8533 and 4.2990.