KUALA LUMPUR: Malaysia's stock market is approaching a critical test as two major reforms take shape, but whether they can finally help it break out of what many describe as its "lost decade" remains an open question.
The FTSE Bursa Malaysia KLCI (FBM KLCI) continues to trade below its historical valuation despite the country's economic expansion over the past decade, which has fuelled business growth and earnings.
Yet that growth has not translated into sustained gains for the benchmark, which stubbornly remains below its all-time high of 1,895.18 points recorded in April 2018.
According to MBSB Research, the FBM KLCI is currently trading at 14.8 times its 2026 earnings, below its 10-year average of 16 times, while consensus estimates point to 8.4 per cent earnings growth this year.
