Investors looking for higher returns in Asia's equity markets can these days take their pick from a smorgasbord of opportunities, ranging from emerging economies like India and China to more mature markets like Taiwan and Korea. But when it comes to political stability combined with solid economic growth and strong corporate earnings, many fund managers are taking at second look at Malaysia. And they like what they see. "From an investment point of view, there is now a lot of interest in Malaysia," says Zarir Cama, chief executive officer at HSBC, one of the major foreign banks in Kuala Lumpur. "The economy is looking good. The change of leaders is viewed as positive. The only real threats are external." The situation marks a welcome turnaround from the days following the Asian financial crisis when the Malaysian government and its outspoken Prime Minister Mahathir Mohamad were virtually outlawed by the international financial community after they rejected the advice of the IMF and imposed capital controls. Almost all those controls have since been removed. And although the ringitt remains firmly pegged to the US dollar, investment profits can be freely repatriated.
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