What factors drove non-resident portfolio inflows into Malaysia in early 2019?

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Non-Resident Portfolio Inflows Drove Ringgit's Appreciation in Early 2019

The Malaysian ringgit experienced a notable appreciation of 1.4 per cent against the US dollar during the first quarter of 2019. This positive movement was primarily attributed to substantial non-resident portfolio inflows, which totalled RM13.5 billion within that period.
Inflows Supported Ringgit's Performance

In the initial three months of 2019, the Malaysian ringgit demonstrated a strengthening trend against the US dollar. This appreciation was significantly influenced by foreign investment flows into the country. Specifically, non-residents invested RM13.5 billion through portfolio channels, a key factor contributing to the currency's gain.
Global Economic Conditions Influenced Sentiment

While the first quarter saw inflows, the period from April to mid-May 2019 witnessed a depreciation of 2.2 per cent against the US dollar. This subsequent weakening was described as being in line with most regional currencies. The central bank noted that this shift reflected a cautious investor sentiment in global financial markets.
Geopolitical and Trade Uncertainties Played a Role

The cautious investor sentiment was further shaped by broader global economic concerns. These included a weakening global growth outlook and existing uncertainties surrounding geopolitical developments and international trade. Such global factors can often lead to shifts in capital flows as investors reassess risk.

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What factors drove non-resident portfolio inflows into Malaysia in early 2019?

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