Asia’s worst-performing major stock market is getting cheaper by the day. But that’s not enough to lure investors back.

Malaysian equities aren’t ripe for a re-rating even as valuations drop to near the lowest in a decade, according to investors. Political risks and a weak earnings outlook have undercut appetite for local shares, which are heading toward a second year of losses, extending 2018’s worst showing since the global financial crisis.
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Global funds have yanked more than $2 billion from Malaysian stocks in 2019, the biggest outflow among emerging Asian equity markets. More than a year after Prime Minister Mahathir Mohamad took office pledging to boost the stock market, investors have been left underwhelmed by a cut in public spending, a lackluster ringgit and question marks over the succession of power.
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The share index’s price-to-book valuation of 1.5 times is near the lowest since 2009 and at a discount to the 10-year average. The market is 4% away from bear market levels.

https://www.bloomberg.com/news/articles/201...nd=premium-asia