High-dividend issues bypass controls: move may offer investors tidy profit from Malaysia, some analysts say
Article Abstract:
Foreign investors in the Malaysian stock market have hit upon an innovative idea to circumvent Malaysia's capital controls, that of investing in companies that repatriate dividend income. Investors are lapping up stocks of foreign firms with units in Malaysia that offer dividend yields exceeding 9%. But a caveat for investors is the firm they are investing in, since these firms may anytime suspend or cut payout rates to shareholders, such as the case with Berjaya Sports Toto, which retained reserves amounting to 173 mil ringgit to purchase its shares in the market.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Seeking monetary direction
Article Abstract:
The Malaysian government and the country's monetary authorities are at odds over whether the country should retain high interest rates, as backed by the central bank, or whether Malaysia should ease monetary policy to recommence growth, as supported by Malaysian Prime Minister Mahathir Mohamad. Some companies argue that the high interest-rate policy has made companies reluctant to take on new loans, particularly with profit reduced by the economic turmoil. However, the central bank's main concern in sustaining high interest rates is to stabilize the ringgit.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Mahathir signals bank shift
Article Abstract:
Malaysian Prime Minister Mahathir Mohamad's apparent about face to a government-initiated plan of bank mergers has taken Malaysian bankers by surprise. The plan, which was announced in Jul 1999, called for the creation of six large financial institutions out of the bank mergers. Mohamad's remarks that the government was not hurrying the process and that banks would be allowed to choose which among them would take the lead in merging was interpreted by some quarters as hesitation. However, many analysts praised the move, saying mergers should not be forced.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Luring the locals: Lippo eyes Indonesia's retail investors. Pros skip Malaysian stocks despite small-cap froth
- Abstracts: Japanese corporate moves are unlikely to buoy profits. Central-Bank survey casts dark cloud over economy. Slammed into reverse
- Abstracts: New minis rescue car makers. Toyota profit goal damped: Asian turmoil is expected to hurt earnings. Foreign auto sales fall
- Abstracts: Right medicine would help: despite fund overflow, investors may return. Japan is getting a big dose of the Asian economic crisis
- Abstracts: Hong Kong utility stocks pose a risk: some issues more exposed to land market's woes than investors realize. Credit shortage damps Hong Kong bourse's prospects