KUALA LUMPUR: In the ever-evolving realm of finance and investment, 2024 will bring a dynamic mix of challenges and opportunities.

As experts assess the current economic landscape, several key factors are coming into play to influence the investment outlook for the year ahead.

One of the most pressing topics of discussion among financial analysts and investors is the performance of the Malaysian Ringgit. The currency has been steadily edging closer to the 5.0 mark against the US dollar, prompting concerns about its stability and the potential for devaluation.

Munirah Khairuddin, Chief Executive Officer and Country Head of Principal Malaysia, shares her insights into the financial landscape as we move into the fourth quarter of 2023.


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“Global inflation, despite signs of a slowdown in indicators like non-farm payroll, continues to pose challenges.

“The global equity markets, with the exception of China, have surrendered some of their recent gains.

“Investors are carefully weighing the path forward, with some diversifying into global multinationals situated in Asia to attain greater stability and valuation,” Munirah said on Astro AWANI’s program Notepad with Ibrahim Sani on Tuesday.

Adding further complexity to the investment landscape is the growing influence of geopolitical risk.

Ongoing conflicts in various regions of the world, including Gaza, Israel, Ukraine and Russia, as well as escalating tensions between Taiwan and mainland China, have increased the risk premium embedded in financial markets

“Especially in the tech and trade sector between China and the US, it is impacting businesses and markets.

“The situation remains fluid, and investors are approaching this with caution while maintaining their long-term perspectives.

“The interest rate differential and real interest rates play a significant role in the Ringgit's performance, influenced by the US's rate pause and the strength of the US dollar,” she said.

Anticipating investment trends for 2024, Munirah highlighted the rise of technology and innovation. Themes such as artificial intelligence (AI), blockchain, biotechnology and food security are expected to drive investment flows.

“Healthcare and pharmaceuticals will continue to grow, along with the emergence of biotechnology in areas like food security.

“Fixed income assets are attractive due to higher yields, although investors are keeping an eye on inflation.

“Private assets, such as direct lending, private equity, and real estate investments, are gaining interest."

Munirah also views the recently announced Budget 2024 as expansionary and transparent, the implementation of which will be closely watched by investors.

“Diversification and smart investment choices will be key to navigating the evolving financial landscape.

“Clarity is emerging in technology, innovation, and sustainability, which are expected to influence investment trends,” she said.