Focus on fundamentals rather than fears, says Maybank CEO

Maybank Group president and chief executive officer Datuk Abdul Farid Alias

MANILA: Maybank Group president and chief executive officer Datuk Abdul Farid Alias said investments in the Asean region are expected to grow positively despite the current global headwinds.

In 2014, the Asean region has attracted some US$136bil in foreign direct investments with around 20% coming from intra-Asean investment.

Speaking to reporters at Invest Asean held in Manila on Tuesday, he said that the markets had been spooked by the unexpected slowdown in China, where it was beyond what investors have expected.

Farid said the region was in a way fortunate, having go through the Asian Financial Crisis in 1997 as countries, including Malaysia now have stronger reserves and balance sheet. 

"Globally slowdown can certainly be expected but having said that I still believe Asean will be the fastest growing economy due to its fundamentals," he said.

Farid said once everything normalises and uncertainties dissipate, investors will start looking for growth again.

"The point is, yesterday's event was driven by emotions, in my perspective. It was a reaction to what we saw in China," he said.

However he added that the movement in liquidity around the world is creating a lot of volatility.

"Which is why we need to have a bigger cushion by Asean. We hope it will make sense to focus investments within the region," he noted.