Mr. Fildes said. People feel a lot more secure after the election.'' - Problems in Indonesia could spill over to Malaysia if the situation worsens there, especially in regard to tensions in Indonesia's outlying provinces. There is an ever-present possibility of China devaluing the yuan, a move that would seriously challenge Malaysia's export competitiveness. But despite the risks, most analysts stress that Malaysia's economic fundamentals look strong. Gross domestic product looks set to grow by at least 2 or 3 percent this year.
Industrial production is up and the ringgit is judged undervalued.