Review on the Stock Investment in Malaysia in Overcoming the Inflation of the Malaysian Economy

Abstract

The purpose of the study is targeted to explore and investigate the potential performance of the stock investment in Malaysia in overcoming the inflation of the Malaysian economy. The primary goal of the investment is motivated to overcome the inflation rate to avoid losing the purchasing power. This leads to the problem statement for the study to investigate the performance of the KLSE market index growth against the inflation rate in Malaysia. The methodology of the research had focus in the application using past ten years of data including the range from 2013 to 2022 to compare the growth of the inflation against the KLSE market index. The findings had provided the sufficient evidence to showed that the inflation rate in average had exceed the KLSE market index growth reflecting that the investment in overall Malaysian stock is not favourable to overcome the increasing inflation in the country. In addition, the average Fixed Deposit (FD) rate in Malaysia had surpassed both the inflation rate and KLSE market index growth in average for the past ten years performance. The recommendation drawn from the study had proposed more solid management of the portfolio by not over diversifying the portfolio for the stock investment. The outcome for the study had provide the significant contribution and refenrece towards the academic and investors to gain future input.