According to MIDF Research, the continued influx of foreign funds is expected to further strengthen the Malaysian ringgit and boost the bond market. MIDF anticipates that the foreign inflow will provide support to the Malaysian currency, which has already been showing signs of improvement.
The Malaysian bond market is also expected to benefit from the foreign influx, as investors seek out higher yields in emerging markets. This increased demand for Malaysian bonds could lead to higher prices and lower yields, making them more attractive to investors.
Overall, MIDF is optimistic about the outlook for the Malaysian economy, citing the positive impact of foreign investment on both the currency and bond market. This bodes well for the country’s economic growth and stability in the coming months.