Malaysia Benifits From China Growth

I intend to use the Malaysian ETF (EWM) as a play on China, instead of investing directly.

Last year Malaysia released ts currency peg to the dollar, and like China it’s currency is expected to rise over the coming years. This will bode well for any investments here.

The Malaysian economy is open to foreign investment and is well situated to benefit from growth in China. It has huge natural resources including tin, petroleum, natural gas, timber, copper, iron ore, bauxite. Malaysia also has a well educated population with an average age of 24.

From what I can see, it is slightly under the radar and hasn’t exhibited the tremendous growth seen in some of the other emerging markets and as such is a good investment opportunity. PE and yield(EWM: 13.74, 4.19%) compares favourably with other commodity countries Australia (EWA: 14.56, 3.59%) and is a lot better than Canada (EWC: 16.01 0.69%), these figures combined with its expected currency movement make it very attractive..

For more information on investing in Malaysia and other ways to play China read this forbes article on ways to play China.