FMUTM Lauds BNM’s De-Pegging of The Ringgit
22nd JULY 2005
The Federation of Malaysian Unit Trust Managers (FMUTM) hails Bank Negara Malaysia ’s (BNM) announcement late yesterday night on the removal of the ringgit peg to the US dollar for a managed float against a basket of currencies.
Following on BNM raising the bar for foreign investment limits in March this year for Unit Trust Management Companies (UTMCs), BNM’s latest move is timely and certainly a step in the right direction towards a liberalised regime. It will not only have a positive impact on the Malaysian economy but also augurs well for the investment management industry. With the ringgit de-peg, it has now removed the uncertainty of when to invest overseas as previously some UTMCs harboured the fear of suffering exchange losses (due to a sudden re-pegging). We have recently seen several UTMCs taking the lead by launching funds with the objective of investing overseas to provide alternative investment options to investors. We anticipate that with BNM’s latest move, more UTMCs will now earnestly consider investing abroad.
FMUTM looks forward to BNM and the Government making further moves at the opportune time in future to provide more investment opportunities for Malaysian investors.
FROM THE DESK OF TUNKU DATO’ YA’ACOB TUNKU ABDULLAH,
PRESIDENT, FEDERATION OF MALAYSIAN UNIT TRUST MANAGERS
22 July 2005
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