The country's success in attracting companies such as Google and Microsoft suggests that Prime Minister Anwar Ibrahim's policies are taking effect. Anwar is increasing spending in the semiconductor industry and building manufacturing capabilities and renewable energy capacity. The fund managed by Lee, the Principal Dali Equity Growth Fund, has outperformed the benchmark with year-to-date returns of 24%.
Key takeaways:
- Malaysia's government policies are positioning the nation's stocks as a long-term winner in the region, with a nearly 10% rally likely to extend, according to one of Asia’s top-performing funds.
- The benchmark KLCI Index may rise another 5% to 9% in the next 12 months, according to Chun Hong Lee, a portfolio manager at Principal Asset Management Bhd.
- Malaysia’s benchmark index is outperforming in Southeast Asia as the country becomes a focal point for investments in semiconductors and artificial intelligence-driven data centers.
- The 1.7 billion ringgit ($361 million) Principal Dali Equity Growth Fund, managed by Lee, beat the benchmark gauge with year-to-date returns of 24%.