Malaysian capital market continues to move towards RM4 trillion in 2024, driven by domestic fundamentals that have helped the country weather global economic challenges.
As of October, the bond and sukuk market reached RM2.09 trillion, while Bursa Malaysia’s market capitalization reached RM2 trillion for the first time.
This growth is driven by domestic reforms and an economic growth forecast of between 4.8% and 5.3% this year.
Although the export sector remains vulnerable to global headwinds such as geopolitical tensions and a slow recovery in global trade, the Malaysian capital market continues to grow strongly.
Bursa Malaysia also surpassed its target of 42 IPOs in 2024, with 52 companies listed as of December 16, recording the highest performance in 10 years.
With several more IPOs in the pipeline, Malaysia is expected to reach 55 IPOs by the end of this year.
The FTSE Bursa Malaysia KLCI (FBM KLCI) also recorded a 10.6% increase as of December 13, compared to last year, reflecting the positive trend in the Malaysian stock market.
While global trade uncertainties, especially after Donald Trump’s victory in the US election, have dampened market expectations, sectors such as technology, healthcare and consumer goods are seen as having the potential to continue growing.
The Malaysian bond market is also becoming more stable, with both domestic corporate bonds and sukuk attracting investor attention following the US Federal Reserve’s rate cut.
Malaysia is seen as continuing to excel in the global Islamic finance sector, making sukuk a strong investment option.
With government initiatives such as Budget 2025 aimed at increasing market liquidity through foreign worker participation in the Employees Provident Fund (EPF), the Malaysian capital market is expected to be further strengthened.
Overall, Malaysia continues to strengthen its capital market, with strong fundamentals and ongoing strategic measures to face global economic challenges.
