Top Financial News of 2024: A Year of Recovery and Transformation in Malaysia
April 1, 2025 | Bursa SGX, Malaysia – The Malaysian financial landscape experienced significant transitions in 2024, marked by a remarkable recovery in equity markets, strategic corporate moves, and ongoing debates surrounding regulatory frameworks and infrastructure investments. Here is a detailed overview of the key stories shaping Malaysia’s economy.
Malaysian Equities and Currency Experience Historic Gains
The Malaysian stock market, once dubbed the “world’s worst major market” in 2019, rebounded impressively in 2024. Investor sentiment improved considerably after Malaysia navigated a troubling political environment, leading to robust corporate performances and foreign investment inflows.
The FBM KLCI index achieved an impressive 12.58% annual gain, marking its best performance since 2010. Notably, the market capitalization of Malaysian stocks surpassed the RM2 trillion mark in May, buoyed by strong corporate earnings and encouraging trade figures.
Major contributors to this resurgence included YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd. The benchmark’s valuation increased, trading at a forward Price Earnings Ratio (PER) of 15.7, above the three-year average of 14.3 as of December 30. In tandem with this market boom, the Malaysian ringgit strengthened significantly, appreciating by as much as 11.4% to an intra-year peak of 4.124 against the US dollar in September. Despite some softening later in the year, the currency managed to maintain a 2.84% gain year-to-date, aided by Bank Negara Malaysia’s initiatives encouraging businesses to repatriate overseas earnings.
Controversial Privatisation of Malaysia Airports Holdings Bhd (MAHB)
In May 2024, Malaysia Airports Holdings Bhd announced it received an offer to privatize the company at RM11 per share from a consortium led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF). The proposal followed a 35-year concession extension for MAHB to oversee the management of Malaysia’s 39 airports.
The deal has sparked public outcry, particularly due to concerns surrounding one consortium partner, Global Infrastructure Partners (GIP), which raised protests over alleged ties to entities perceived as controversial. In a statement, the government defended the move as a strategic opportunity to enhance MAHB’s operational capabilities.
Despite opposition from independent directors, who argued the offer undervalued MAHB amid its positive financial growth, a recommendation by Hong Leong Investment Bank supported the proposal. The consortium maintained that the offer, despite criticisms, accurately reflected MAHB’s circumstances.
U Mobile Selected as Lead 5G Operator Amid Controversy
In November, U Mobile Sdn Bhd was chosen by the Malaysian Communications and Multimedia Commission (MCMC) to spearhead the deployment of the country’s second 5G network. This selection, which contrasted with the expectations surrounding larger competitors, sparked debates regarding transparency and potential foreign influence over Malaysia’s telecom infrastructure.
U Mobile’s largest shareholder, Singapore’s state-owned Temasek Holdings, came under scrutiny following the MCMC’s announcement, particularly concerning the implications of foreign ownership in a strategic sector. The situation intensified when Temasek announced plans to reduce its stake in U Mobile, leading to confusion regarding the firm’s compliance with local ownership laws.
Sarawak’s Push for Control Over Gas Resources
The push for Sarawak to assume greater control over its abundant natural gas resources took center stage in 2024, as local officials aimed to establish Petroleum Sarawak Bhd (Petros) as the primary aggregator for gas distribution within the state. Currently, this role is held by the national oil company, Petronas, which has traditionally managed Malaysia’s energy resources.
Sarawak’s government argued that consolidating control would allow for better management and distribution of gas, enabling more accessible energy solutions for its residents. The debate around this transition raised questions about the potential impact on Petronas and the state’s overall energy infrastructure, given Petronas’ significant contributions to national revenue.
Public Bank Acquires LPI Capital Stake Amid Family Transition
Public Bank Bhd made headlines in October with its acquisition of a 44.15% stake in LPI Capital Bhd from the family of its late founder, Tan Sri Teh Hong Piow, for RM1.72 billion. This strategic move was the first major merger and acquisition for the bank since its 2021 acquisition of Hock Hua Bank.
Additionally, the Teh family announced plans to gradually reduce its stake in Public Bank to comply with regulatory limits set by the Financial Services Act. This transition suggests significant organizational changes within one of Malaysia’s most prominent banking institutions.
Surge in Data Centre Investments Fuels Economic Growth
2024 marked a notable increase in investments within Malaysia’s data centre sector, positioning the country as a burgeoning hub for technology and digital infrastructure. Major tech giants, including Amazon Web Services, Microsoft, and Google, heavily invested in data centres, igniting a flurry of related land deals and pushing the economy into the digital age.
With over RM75 billion expected in investments in this sector, Malaysia aims to harness the potential of digital technology while creating high-skilled jobs and fostering economic growth.
Conclusion
The financial developments of 2024 illustrate a year of resilience and transformation for Malaysia. As the nation navigates strategic corporate reconfigurations, regulatory challenges, and burgeoning investments in technology, the outlook remains bullish, emphasizing resilience after a phase of considerable fluctuations. As we progress into 2025, all eyes will remain on how these dynamics will shape Malaysia’s economic landscape in the coming years.
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