Amidst the Middle East situation impacting global energy markets, J.P. Morgan has listed Malaysia and China as Asia’s more resilient "safe havens."
According to a report by Lianhe Zaobao, Rajiv, J.P. Morgan’s Chief Asia Strategist and Co-Head of Global Emerging Markets Strategy, said in a recent interview with CNBC that Malaysia's advantages lie in its status as an energy exporter and its robust policy framework, providing a buffer against external pressures. "Thanks to the Malaysian government's regulatory policies, the fiscal deficit is well under control and inflation has not seen a significant surge."
He said these factors not only help support Malaysia’s stock market, but also help the currency remain stable under external pressures.
Previously, Malaysian Prime Minister Anwar announced that the government would subsidize RON95 petrol, keeping the price at RM1.99 per liter until May. At the same time, diesel subsidies for certain transportation operators would also be provided, fixing the price at RM2.15 per liter to ease the pressure on the public and most businesses.
Regarding the Chinese market, Rajiv analyzed that China relies on imports for only 5% of its electricity, with most electricity produced domestically. China also possesses strong strategic reserves and has the capability to scale up alternative energy sources such as coal and renewables when necessary.
However, he warned that the overall outlook remains uncertain. If geopolitical tensions continue to disrupt oil and gas supplies, global economic growth could come under pressure.