“Investors look at individual companies and government stability, among others,” Templeton Franklin Emerging Markets Group Executive Chairman Dr Mark Mobius said today.

“Also, such concerns are not unique to Malaysia, as we can see how the whole issue of 1MDB is now getting buried by the Panama Papers,.”

Speaking to reporters after the Global Islamic Finance Forum 5.0 in Kuala Lumpur, Mobius said the negative news surrounding 1MDB may have a short-term effect, but will not dampen long-term investor confidence.

“You will not see investors pulling out because of that (1MDB). It will not affect investor confidence.”

Fitch Ratings had said yesterday 1MDB’s missed bond coupon payment late last month showed there was ongoing uncertainty over the state-owned investment fund.

1MDB will have to pay an interest of US$52.4 million on a second US$1.75 billion bond it issued that is due on Thursday.

On April 25, 1MDB had missed a US$50 million coupon payment on a 5.75% bond due in 2022 as part of its dispute with IPIC. IPIC subsequently made the coupon payment.