The top reasons for increasing investor appetite are: favouring Asian stocks to a very stable market (34%), equities could enjoy higher returns than other investments (34%) and signs that market conditions were improving (33%).

Manulife Asset Management Services Bhd Chief Investment Officer/Managing Director Jason Chong said the company also held a positive view towards Malaysian equities in the year ahead.

“The government’s efforts at pushing out infrastructure projects and a gradual recovery in consumer confidence is expected to underpin economic growth this year.

“Ongoing improvements in commodity prices should also help the ringgit to strengthen,” he said in a statement.

Chong also said Malaysia’s economic growth was expected to remain resilient with moderate inflation levels and a stable domestic rate environment.

“Higher oil prices coupled with the government’s fiscal consolidation programme will lower the risk of a sovereign downgrade.

“The domestic economic fundamentals will remain supportive of our bond market,” he added.

MISI also reported that 83% of Malaysian investors saw “a neutral to good time” to invest in the fixed income asset class in the next six months.

According to the survey, growth in emerging markets around Asia was also expected to continue offering opportunities for investors in 2017, amid ongoing global political and market uncertainties.

The survey was derived from 500 online interviews in Malaysia, Hong Kong, China, Taiwan, Thailand, Singapore and the Philippines. There were some 500 face-to-face interviews in Indonesia.