KUALA LUMPUR (Jan 23): Foreign funds will flow into Malaysia's financial and capital markets, as long as the country's economic fundamentals reflect strength, said Citibank N.A.

Citibank chief investment strategist Haren Shah said foreign funds will be attracted to where opportunities are present.

"If we [Malaysia] present better growth opportunities and a better earnings profile, money will come [in]," he said at Citibank's market outlook briefing today.

Haren said perception of how well the economy performs will also play a part, and so will the country's response to weather through falling crude oil prices.

He was commenting on the launch of a bond-buying stimulus programme by the European Central Bank yesterday, which will pump 60 billion Euros worth of bonds into the sagging euro zone economy, starting March this year until September next year.

Meanwhile, Citibank Bhd's wealth management product head Leong J.A. does not expect Bank Negara Malaysia to raise its key interest rates this year.

He also expressed caution on the ringgit for the short to medium term. The ringgit currently trades at 3.61 against the US dollar.