Malaysia's stock market is holding steady as transparent government policy and measures that support foreign capital keep investors engaged, Finance Minister II Datuk Seri Amir Hamzah Azizan told parliament, The Edge Malaysia reports. He was answering questions in the Dewan Rakyat during ministers' question time.

His remarks came as lawmakers questioned whether foreign investors were pulling money out of Malaysian equities amid changes in global geopolitics. The government has pointed to the performance of the bourse as evidence that the country's capital market can absorb external uncertainty.

Amir Hamzah said share prices would move up and down in response to events around the world, adding that the global geopolitical order was in a period of major change.

"The key point, nonetheless, is that Malaysia's stock market remains stable. And this stability is assured because the government maintains transparent policies and has put in place measures that support the inflow of foreign funds," Amir Hamzah said.

He was responding to a supplementary question from Datuk Awang Hashim, the Perikatan Nasional (PN) member of parliament for Pendang. Awang Hashim asked whether a fall in share values of more than MYR1bn (about $240mn) could hurt the Malaysian economy, and what was prompting foreign investors to withdraw their holdings.

The minister said strong foreign direct investment inflows were continuing to support the market. He tied those inflows to the volume of investment approvals Malaysia has granted.