FTSE Russell is keeping China on a watchlist for entering its flagship World Government Bond Index (WGBI) and will continue to monitor Malaysia for a … Its latest initiative, effective March 15, was to liberalise the interest rate swap (IRS) market. Nevertheless, Goh believes Malaysia’s weighting in the WGBI may be lowered in the upcoming review to pave the way for China’s inclusion from October 2021. KUALA LUMPUR: FTSE Russell has decided to remove Malaysia from a watchlist of possible exclusion and retain it in the World Government Bond Index (WGBI). Bhd. KUALA LUMPUR (Sept 27): FTSE Russell will keep Malaysia on a watchlist for exclusion from its World Government Bond Index, signaling that policy makers need to do more to deepen the ringgit debt market.Malaysia’s currency and bonds have been under pressure since April when FTSE said it may exclude ringgit debt due to accessibility issues. Chinese sovereign bonds will have the sixth-largest weighting in FTSE Russell’s flagship World Government Bond Index. “This follows recent initiatives by Bank Negara Malaysia (BNM) to improve secondary market liquidity and to facilitate foreign exchange (FX) transactions,“ FTSE Russell said in a statement yesterday following the September 2020 fixed income review. While congratulating Malaysia on the FTSE Russell’s decision to remove Malaysia from the watch list and retain the country’s membership in the FTSE World Government Bond Index (WGBI), the association said the concurrent announcement of the inclusion of China and reviews for inclusions of other markets are a reminder that there is no room for complacency and that Malaysia needs to … The removal of Malaysia from the market accessibility of FTSE Russell’s Watch List is in recognition of the various tangible initiatives it has implemented over the past two years under the leadership of Bank Negara Malaysia (BNM), said the Financial Markets Association of Malaysia (FMAM). The removal came as it saw that Bank Negara Malaysia had progressively been taking steps to address foreign investors’ concerns on the … Ways to search theedgemarkets.com content, by category: @category "corporate" "hot stock”, Combine search:  "high speed rail" @author "Bhattacharjee" @category "From the Edge". Malaysia’s removal from WGBI watchlist On March 29, FTSE Russell announced that it would remove Malaysia from its watchlist of possible exclusion from the World Government Bond Index (WGBI) … Malaysia will be retained in FTSE Russell’s World Government Bond Index (WGBI), as published in its Fixed Income Country Classification Announcement for March 2021. Malaysia’s current weighting in the WGBI is at about 0.4%. UOB Malaysia’s senior economist Julia Goh notes that there is no mention by FTSE Russell of a definite time frame to be on the watch list, but UOB presumes it to be no longer than two years. China onshore, Malaysia bonds stay on FTSE Russell's watchlist Back to video Malaysia’s bond market is the most foreign-owned in Asia, and the status-quo could weigh on the ringgit on Friday. Malaysia 27 September 2019 Treasury Research & Strategy 1 Maybe in March • It has been half a year since Malaysia was put on a watchlist for a potential exclusion from the WGBI sovereign bonds index. The Edge Communications Sdn. FTSE Russell announced in its FTSE classification of fixed income markets on Sept 24 that Malaysia will be retained on its watchlist, as of the September 2020 review, for possible reclassification from Market Accessibility Level 2 to 1. Copyright © 2021 Sun Media Corporation Sdn. Market enhancements include, but are not limited to, firstly, improving secondary market bond liquidity through further progress on the establish of a Debt Management Office, an improved auction calendar that offers more re-opening of prior issues, a greater number of Malaysian Government Securities available via repo, consolidation of bond issuances to increase the outstanding size per issuance and reducing the number of issuances and, introducing MGS futures with physical delivery. The strong foreign demand for Malaysia’s domestic bonds in the first two months of the year suggests that in an environment of ongoing quantitative easing (QE) and improving recovery across Asia, Malaysia’s bonds remain attractive to certain classes of investors,” she tells The Edge. “While the trading liquidity of Malaysia government bonds may not be as high as that of developed market bonds, it is offset by the country’s relatively small WGBI weight of 0.42% as of Aug 31, 2020 and the central bank’s efforts to improve the trading environment,“ HSBC said in a report today. FTSE Russell decided not to add China to its widely-tracked government bond index on Thursday as investors reiterated long-standing concerns, while Malaysia … On April 15, 2019, FTSE Russell placed Malaysia on its watch list and said that the country was being considered for a potential downgrade from ‘2’ — which represents the highest level of market accessibility — to ‘1’, which would render Malaysia ineligible for inclusion in the WGBI. HONG KONG/SHANGHAI, April 3 (Reuters) - FTSE Russell is keeping China on a watchlist for entering its flagship World Government Bond Index (WGBI) and will continue to … Nevertheless, the actual risk of exclusion is low, they add. Cognisant of the risks, Bank Negara Malaysia attempted to address some of the concerns raised by investors, implementing a series of measures to open up and enhance liquidity in the bond and foreign exchange markets. FTSE Russell will provide another update after an interim review in March, which would give the Malaysian central bank time to potentially explore more measures to enhance liquidity. (Bloomberg) -- FTSE Russell has placed the Indian and Saudi Arabian government bond markets on the watchlist for possible inclusion in its FTSE Emerging Government Bond … ON March 29, FTSE Russell’s in its semi-annual country classification review for fixed income announced that Malaysia will be removed from the watchlist for potential reclassification of its market accessibility level from “2” to “1” and will retain its membership in the FTSE … While the decision to add Malaysia on the watch list raises concerns in the domestic bond market, FTSE Russell stressed that it was “not a guarantee of future action”. The central bank has announced a slew of … Prior to this latest announcement, Malaysia had been in the WGBI Watch List since April 2019. All rights reserved. News reports indicate that an estimated US$2.5 trillion of both active and passive funds track the WGBI. FTSE Russell includes India bonds on watchlist for index inclusion The inclusion of Indian government bonds on the watchlist for one of its major global debt indexes is seen as an acknowledgment of a liberalising sovereign bond market . This morning, FTSE Russell effectively said that it needs more time to decide. This article first appeared in The Edge Malaysia Weekly, on, Heightened insurance awareness leads AIA to expand workforce and digital ambition, Now you can celebrate a new chapter together with Astro, VANZO, the first Malaysia brand endorsed by Hong Kong Super Star Louis Koo, EVENING 5: Nationwide lockdown from May 12 to June 7, EDGE WEEKLY: Yet another reboot for Malaysia Airlines, EVENING 5: New daily Covid-19 cases jump to 4,498, EVENING 5: BNM continues to keep OPR at 1.75%, MCO 3.0 expands to whole country, restrictions from May 12 to June 7, Najib, Shahrol, Ismee and Ibrahim Ali among those named in 16 suits by SRC, 1MDB files multibillion-dollar suits against Deutsche Bank, Coutts, JP Morgan, Wong & Partners and others, Sacrifice today for tomorrow's safety — Dr Mahathir, SC, Bursa to end temporary revision of market management, control mechanisms. “The outflows can be quite huge … we think it could be about RM25 billion. “That said, should FTSE Russell decide that more time is needed to assess the efficacies of some of the more recent liberalisation initiatives, there is still a possibility that it might decide to keep Malaysia on its watch list, albeit the probability is certainly lower than before,” he adds. NEW YORK/KUALA LUMPUR: Index provider FTSE Russell said on Thursday it would retain China's onshore government bonds on a watch list for a possible upgrade that could allow Chinese debt entry to its widely tracked government bond index. KUALA LUMPUR (Sept 25): Malaysia will be retained on the Watch List of the FTSE World Government Bond Index (WGBI), as of the September 2020 review, for possible reclassification from Market Accessibility Level 2 to 1.In the classification published Sept 24, FTSE Russell acknowledged the additional initiatives instigated by Bank Negara Malaysia (BNM), over the last twelve months to … For over 30 years, leading asset owners, asset managers. The central bank has announced a slew of … This is a crucial step towards India … This means Malaysia could continue to remain on the WGBI and avoid a downgrade, if the country fulfils the WGBI eligibility criteria at the upcoming review in September 2019. Malaysia on FTSE Russell watch list Investors will be watching PETALING JAYA: Malaysia is on the verge of being removed from the World Government Bond Index (WGBI), with local government bonds facing a potential rating downgrade, raising the risk … FTSE Russell will provide another update after an interim review in March. (Highlight) FTSE Russell will keep Malaysia on a watchlist for exclusion from its World Government Bond Index, signaling that policy makers need to do more to deepen the ringgit debt market. PETALING JAYA: Malaysia continues to be included in the FTSE World Government Bond Index (WGBI) but will remain on the FTSE Russell Fixed Income Watch List for … This follows a pilot programme in November 2020, which initially accorded selected onshore banks the flexibility. - Bloomberg Prior to this latest announcement, Malaysia had been in the WGBI Watch List since April 2019. It said Malaysia will be retained on the watch list, as of the September 2020 review, for possible reclassification from Market Accessibility Level 2 to 1. FTSE Russell announced in its FTSE classification of fixed income markets on Sept 24 that Malaysia will be retained on its watchlist, as of the September 2020 review, for possible reclassification from Market Accessibility Level 2 to 1. Save by subscribing to us for your print and/or digital copy. KUALA LUMPUR, March 30 — The removal of Malaysia from the market accessibility of FTSE Russell’s Watch List is in recognition of the various tangible initiatives it has implemented over the past two years under the leadership of Bank Negara Malaysia (BNM), said the Financial Markets Association of Malaysia (FMAM). On April 15, 2019, FTSE Russell placed Malaysia on its watch list and said that the country was being considered for a potential downgrade from ‘2’ — which represents the highest level of market accessibility — to ‘1’, which would render Malaysia ineligible for inclusion in the WGBI. “FTSE Russell Watch List of fixed income markets being considered for potential reclassification includes China and Malaysia. Bank Negara’s additional initiatives included improving secondary market bond liquidity through further progress on the establishment of a debt management office, an improved auction calendar that offers more re-opening of prior issues, a greater number of Malaysian Government Securities (MGS) available via repo, consolidation of bond issuances to increase the outstanding size per issuance and reducing the number of issuances, and introducing MGS futures with physical delivery. 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