THE estimated RM1.05 billion outflow of foreign funds from the equity market as of October 13 is still among the lowest in the region, said Finance Minister Lim Guan Eng.

Other Asean countries, he told the Dewan Rakyat during question time this morning, recorded higher foreign attrition.

Compared with Malaysia’s US$253 million (RM1.05 billion), Thailand recorded US$701.7 million and Indonesia US$273.53 million. The Philippines recorded an outflow of US$51.3 million.

Lim (Bagan-PH) said the main cause of capital flight is weak market sentiment due to external factors.

Among them are the higher US dollar, rise in US Treasury bond yield and US-China trade war.

“The global oil market is also affected by the conflict between the US and Saudi Arabia over the alleged killing of Jamal Khashoggi,” he said, referring to the Saudi journalist who went missing on October 2 after entering the Saudi consulate in Istanbul.

Lim, answering questions from Ahmad Maslan (Pontian-BN), also said foreign outflows from the equity market from May 10 to October 13 stood at RM3.03 billion.

Elsewhere in the region, Thailand recorded RM4.6 billion, Indonesia RM1.4 billion and the Philippines RM850 million over the same period.

“The market performance in the region has been poor since January 1, with Malaysia seeing a drop of 3%, Singapore 9.75%, the Philippines 17%, Thailand 3.35% and Indonesia 7.6%.

“Putrajaya will look into the fiscal and financial problems inherited from the previous administration to strengthen the country’s competitiveness, and companies’ productivity and profit,” Lim said. – October 18, 2018.