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An Uncertain Time Post-Referendum

in Latest/Slider

PETALING JAYA: Perhaps even the best crystal ball can’t foretell the road ahead after Britain’s farewell vote to the European Union.

London-based senior investment manager Raymond Sagayam said while the effects would be more apparent for people in Britain and the broader European project, the implications on Malaysians were not yet apparent.

“For the average British, job security, economic growth and property prices are now short-term concerns.

“Property in Britain, especially in parts of London, is arguably over-valued. Many have their net worth tied up and the ramifications against an uncertain economic backdrop will be big.

“The market and people do not like uncertainty,” he said, adding that there were more questions than answers at this point in time.

Sagayam, who has been based in Britain for two decades, said Brexit might bring about some interesting tactical investment opportunities.

He said Malaysian property developers in Britain might be impacted if demand dropped.

“From the students’ perspective, I don’t see them being badly affected. Malaysian students are bright, hardworking and pay a lot of fees. That dynamic still goes on,” he said.

Despite the initial pandemonium and uncertainties not just for Britain but the entire Eurozone, he said the country would survive in the long run outside the EU, citing the likes of Switzerland and Norway.

“But how long that adjustment will take is anyone’s guess right now,” he added.

British expatriate Jonathan Di Rollo said businesses across Europe would come under a cloud of uncertainty.

The 47-year-old writer said it would change the pricing structure of many things including housing and imported goods, but those stu­dying in Britain can look forward to paying lower tuition fees with the pound sterling having dropped sharply.

“I’m very surprised by the result, but it’s a democratic poll and that’s very important,” said Di Rollo, who has been living in Malaysia for six years.

Fellow Briton Bernard Ryder, a frequent visitor to Malaysia, said the Brexit news “has yet to sink in”.

“But it is about time we take back control of our economy, finances and borders. So let’s see how Britain responds to the challenge.

“The current EU is not what we signed up for in 1972 and over the past 40-plus years, the control has been slowly but surely taken away by the bureaucrats in Brussels and the majority in Britain have now said enough is enough,” said Ryder, an educationist who lives in Suffolk.


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