India's growth model has been to run a small current-account deficit, financed with high-quality capital inflows, such as foreign directinvestment and equity purchases.
Annual outbound directinvestment(investment to create new businesses or acquire equity stakes of 10% or higher) from China to the U.S. has grown by more than 300% since 2007, according to official statistics.
"Hopefully the market will be more positive about investing in Malaysia, whether in equity, the capital market or foreign directinvestment, " he added.
Emerging economies have been strikingly successful in raising equity finance in the form of foreign directinvestment, which accounted for almost half of the private capital they imported in 2005.
Good news for equity investors--and a return to current account deficits matched by foreign directinvestment inflows that will spur growth and keep Asian currencies relatively strong against the yen.