Top Financial News of 2024: A Comprehensive Overview
Published on June 15, 2025
BURSA & SGX: A Year of Dynamic Changes in Malaysian Financial Landscape
The Malaysian financial market experienced a remarkable turnaround in 2024 after enduring a prolonged period of political instability that had previously hindered investor confidence. The recovery marked a significant milestone for Malaysian equities, especially for the FTSE Bursa Malaysia KLCI (FBM KLCI), which reported an impressive annual gain of 12.58%. This increase not only highlights the best performance for the KLCI since 2010 but also reinstated Malaysia’s stature in the global financial market after it was dubbed "the world’s worst major market" in 2019. Strong Market Recovery and Investor Sentiment
In May 2024, the market capitalization of Malaysian stocks surged past the RM2 trillion mark, driven by robust corporate earnings, an influx of foreign investments, and optimistic trade data. Key players spurring this growth included YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd. The benchmark index now trades at a forward price earnings ratio (PER) of 15.7 times, exceeding the three-year average of 14.3 times as of December 30. Additionally, the Malaysian ringgit displayed significant strength, appreciating by 11.4% to reach an intra-year high of 4.124 against the US dollar in September, before settling at 4.472 due to slower interest rate adjustments in the US. Despite this, the currency remains up 2.84% for the year, bolstered by Bank Negara Malaysia’s initiative urging businesses to repatriate foreign investment income and convert export earnings back to ringgit.
However, 2024 started on a shaky note with some stocks linked to investor Datuk Dr Yu Kuan Chon hitting significant declines, reinforcing stricter margin financing rules as fears of sell-offs reverberated through the markets. Nevertheless, by February, stability returned, setting the stage for an exceptional year for the KLCI.
Controversial Developments in the Aviation Sector
In a pivotal moment for Malaysian aviation, Malaysia Airports Holdings Bhd (MAHB) announced its proposed privatization earlier in the year, following a concession extension to manage the country’s 39 airports until 2069. A consortium led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF) made a controversial offer of RM11 per share to take the airport operator private.
Despite the Malaysian government’s defense of the move as a strategy to unlock MAHB’s potential, the offer met with public dissent primarily due to concerns over BlackRock’s involvement in the consortium, which many accused of having undue influence in the region. Independent directors of MAHB have since urged shareholders to decline the offer, emphasizing its failure to reflect the company’s full potential as a publicly traded entity.
U Mobile’s 5G Network Leadership and Shareholding Concerns
The Malaysian Communications and Multimedia Commission (MCMC) made a noteworthy decision in November 2024 by selecting U Mobile Sdn Bhd to spearhead the deployment of the country’s second 5G network. This unprecedented move, favoring U Mobile over larger competitors, raised eyebrows about the transparency of the selection process, especially given that Temasek, a state-owned investment firm from Singapore, holds 48.25% stakes in U Mobile.
In a follow-up action, Temasek announced its intention to reduce its stake in U Mobile to 20%, creating further ambiguity about foreign ownership limits within the country’s telecommunications sector. As questions about compliance with Malaysia’s foreign shareholding regulations arose, Temasek stated that the stake would remain consistent with legal guidelines while clarifying the true extent of their holdings in U Mobile.
Sarawak’s Push for Gas Supply Control
In a significant development for the oil and gas sector, Sarawak sought more autonomy over its gas resources, advocating for Petroleum Sarawak Bhd (Petros) to take over as the primary aggregator of gas supplies in the state, a role currently held by Petroliam Nasional Bhd (Petronas). This initiative arose from Sarawak’s desire to manage its gas resources and distribute supply more effectively across the region.
While proponents of this move argue it could lead to better control and pricing power for Sarawak, concerns persist regarding its implications for Petronas and federal government revenue, given the latter’s reliance on Petronas’s dividends. The ongoing discussions and negotiations among state and federal leaders are anticipated to shape the future of Sarawak’s oil and gas landscape.
Teh Family’s Strategic Stake Sale in Public Bank
In a strategic financial maneuver, Public Bank Bhd announced in October 2024 the acquisition of a 44.15% stake in LPI Capital Bhd held by the family of its late founder, Tan Sri Teh Hong Piow, for RM1.72 billion. This significant transaction marked the first major merger and acquisition since the Public Bank’s purchase of Hock Hua Bank Bhd in 2021. Alongside this acquisition, the Teh family unveiled plans to decrease its holding in Public Bank from 23.41% to 10% over the next five years, thereby complying with regulatory restrictions on stakes in financial institutions. The upcoming sale of the family’s shares is designed to facilitate this transition while maintaining their influential presence in the bank.
A Surge in Data Centre Investment
The Malaysian data centre industry witnessed exponential growth in 2024, with over RM75 billion in investments flooding into the sector. Tech giants such as Amazon Web Services, Microsoft, and Google are establishing a strong presence, further solidifying Malaysia’s position as a regional hub for data centre operations. This influx has catalyzed a surge in land deals, pointing to a booming demand for digital infrastructure as businesses pivot towards increasingly digital operations.
As Malaysia continues to enhance its financial landscape, 2024 has proven to be a year of significant milestones, with implications that may shape the country’s economic trajectory for years to come. The convergence of resilient market performance, strategic corporate consolidations, and burgeoning sectors presents a landscape rich with opportunities and challenges for investors and stakeholders alike.