Into the 2nd Quarter of 2010..

Salaam and Good Blessing to all...
We have just passed the first three months of FY10 with a rather sedated economic environment compared to the previous few quarters of uncertainty and wildness. The growth environment of 2009 continued into the first quarter of 2010., Thank goodness.

In the past week, buying interest in banking and plantation counters of our BURSA indicates confidence in the sector as the economy progresses into steady and stable environment buoyed by increased consumer spending. Export growth also registered improvement compared to the same period last year. These positive factors can give the market fuel for further growth and we can expect it to continue into the rest of the next quarter of 2010, at least.

The effects of the financial stimulus package is showing positive signs and credit must go to the government for its timely injection of the various stimulus "anecdotes" to take the economy to where it is right now. Some have questioned if these stimulus packages will be withdrawn slowly now that we are in a healthy environment. Fro me, perhaps it is too early to consider this. However, any consideration of this nature  by our government should take into account the short term impact it would bring whilst balancing the long-term objectives of the economic reform of the country

But in respect to Malaysia's economic journey relative to its neighbors, Malaysia cannot operate solely towards its own objectives and agendas as the modern day economic scenarios is such that each country's deep dependence and inter relationship will effect one another performance.

We, as investors must monitor the development of events beyond our shores, (economic or otherwise) when investing. It does not matter if you are ONLY a local (domestic) investor, you will still need to keep a breast with the events of the world, at least of the nearest region as this would effect your investment portfolio.

In reading the business and economic headlines, it is pleasing to note the growth numbers being recorded in most economies. I will refrain from repeating these growth numbers as they are already heavily published and one can easily source them.

Let's hope this growth agenda continues and while we trust upon our fund managers to "look" into their crystal ball for the investment outlook, it would benefit us much to continue our diligence to monitor ourselves the world scenario.

Happy investing...