Malaysia sees output of nearly $ 8 billion if FTSE downgrades: Morgan Stanley – Business News



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LONDON (Reuters) – Malaysia may have outputs of nearly $ 8 billion if its securities are downgraded by global index provider FTSE Russell, Morgan Stanley said in a research note.

The FTSE said on Monday it would review the level of accessibility of the Malaysian market in its World Government Bond Index (WGBI) due to concerns over market liquidity.

Malaysia, currently with a & # 39; 2 & # 39; and included in the WGBI since 2004, was being considered for a possible downgrade to & # 39; 1 & # 39 ;, making it ineligible for inclusion, the FTSE said.

Foreign investors have slashed their Malaysian government bond positions since the end of 2016 and by the end of March 2019 had $ 37 billion, Morgan Stanley said.

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