COMMENT Institut Rakyat views with great concern various insider reports suggesting the virtual absence of foreign investors in Malaysia’s inaugural issuance of 30-year sovereign bonds on Sept 27 this year.

This could set off alarm bells due to worries within the investment community over the health of Malaysia’s public finances and further deterioration of the current account balance, raising the spectre of twin deficits.

Historically, Malaysia’s sovereign debt issues, which are in the investment grade league of A- or A3 have never failed to draw significantly high levels of foreign interest.