Top Financial News of 2024: A Year of Transformation and Strategic Moves in Malaysia’s Economy
Date: Tuesday, 12 August 2025
Source: CEO Morning Brief, BURSA & SGX
1. Malaysian Equities and Ringgit Stage Best Performance in Years
Malaysia’s financial landscape witnessed a remarkable turnaround in 2024, driven by renewed investor confidence following years of political uncertainty. After being dubbed “the world’s worst major market” in 2019, the benchmark FBM KLCI index surged by 12.58%, marking its strongest annual gain since 2010. Investor optimism was fueled by a combination of strong corporate earnings, increased foreign capital inflows, and positive economic indicators, including better-than-expected trade data. Market capitalization of Malaysian equities moved past the RM2 trillion mark for the first time in May, signaling robust market vitality.
Key contributors to the market’s upward trajectory included:
- YTL Power International Bhd (YTLPOWR)
- Tenaga Nasional Bhd (TENAGA)
- CIMB Group Holdings Bhd (CIMB)
The FBM KLCI is trading at a forward price-to-earnings ratio (PER) of 15.7 times as of December 30, above its three-year average of 14.3 times, underlining favorable investor sentiment.
The Malaysian ringgit also strengthened significantly, appreciating up to 11.4% to an intra-year high of 4.124 against the US dollar in September before settling at 4.472—still up 2.84% year-to-date. Bank Negara Malaysia’s encouragement for companies to repatriate overseas earnings and convert export revenues to ringgit played a notable role in supporting the currency.
While the year began tumultuously with a severe sell-off in stocks linked to prominent investor Datuk Dr Yu Kuan Chon—Rapid Synergy Bhd plummeted by 95% and YNH Property Bhd by 85% in January—the market stabilized by February, allowing the FBM KLCI to close the year on a high note despite short-term volatility.
2. Controversy Surrounds Malaysia Airports Holdings Berhad’s (MAHB) Privatisation Move
In 2024, Malaysia Airports Holdings Bhd (MAHB), which manages the country’s 39 airports, became the center of political and commercial scrutiny following a proposed privatisation deal.
After securing a 35-year extension on its airport management concession in March (extending its tenure to 2069), MAHB received a buyout offer in May from a consortium led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF), valuing MAHB shares at RM11 each.
The consortium includes:
- Khazanah Nasional (increasing stake from 33.2% to 40%)
- EPF (increasing stake from 7.9% to 30%)
- Global Infrastructure Partners (GIP)
- Abu Dhabi Investment Authority (ADIA)
The government intends to maintain special share rights in MAHB.
The privatisation stirred protests, largely due to GIP’s connections with BlackRock, which faced allegations related to geopolitical controversies. In October, BlackRock completed its acquisition of GIP, intensifying scrutiny.
Despite objections from MAHB’s independent directors, who issued a circular advising shareholders against the offer—arguing it undervalued MAHB’s growth potential and positive financial momentum—the consortium maintained the RM11 per share offer. The independent adviser from Hong Leong Investment Bank had recommended acceptance on the basis of the share price suppression but considered the offer below fair value (estimated between RM12.61 and RM13.71).
This saga continues to unfold, with shareholders weighing the prospects of privatisation versus maintaining MAHB as a public entity.
3. U Mobile’s 5G Leadership Raises Foreign Ownership and Transparency Concerns
U Mobile was selected by the Malaysian Communications and Multimedia Commission (MCMC) in November to spearhead the country’s second 5G network rollout, a decision that surprised the industry given U Mobile’s smaller size compared to other providers.
MCMC justified its choice based on U Mobile’s proven track record. However, skepticism around the selection process and foreign influence quickly surfaced.
Singapore’s sovereign wealth fund Temasek, through subsidiaries, is U Mobile’s largest shareholder, holding 48.25% of shares. Shortly after the MCMC announcement, Temasek’s affiliate, ST Telemedia, declared plans to reduce its stake to 20% by selling a majority stake to Mawar Setia, a company controlled by Malaysian tycoon Tan Sri Vincent Tan and Tunku Tun Aminah Sultan Ibrahim, the King’s daughter.
Confusion ensued over foreign ownership caps (49%) as “majority stake” suggested more than 50% ownership. Temasek later clarified that Mawar Setia would hold about 51% post-transaction, and Temasek would still maintain effective stakes through convertible instruments, reportedly totaling up to 71%.
Despite questions from regulators and the public, ST Telemedia affirmed that their holdings were compliant with Malaysian Companies Commission disclosures.
4. Sarawak’s Gas Aggregation Battle Highlights Regional Resource Control Tensions
Sarawak, home to 60% of Malaysia’s gas reserves, intensified efforts to assume greater control over its natural gas resources by promoting Petroleum Sarawak Bhd (Petros) as the official gas aggregator for the state. This challenges Petronas’ long-standing role as national gas aggregator.
A gas aggregator manages procurement and distribution of natural gas, according to the Distribution of Gas Ordinance 2016. Sarawak’s push aligns with Chief Minister Abang Johari’s goal to expand affordable gas usage across the state.
While Sarawak’s oil and gas revenue surged to over RM6 billion in 2023—nearly triple the 2019 figure—Petronas’ gas segment still contributes 37% of its group profit and provides RM40 billion in dividends to the federal government, representing 12% of federal revenue.
At a December 21 press briefing, Prime Minister Datuk Seri Anwar Ibrahim emphasized that it was not the intention of either federal or Sarawak state leadership for Petros to wield absolute control over gas supply and distribution.
The resolution of this issue remains crucial for Malaysia’s upstream and downstream oil and gas industry, with all stakeholders keen to reach an arrangement that balances regional autonomy with national economic interests.
5. Teh Family Sells LPI Capital Stake to Public Bank, Plans Bank Shareholding Reduction
In a notable deal, Public Bank Bhd announced in October that it would acquire the 44.15% stake in insurer LPI Capital Bhd held by the family of the late Tan Sri Teh Hong Piow, the bank’s founder. The RM1.72 billion transaction at RM9.80 per share was Public Bank’s first major acquisition since merging with Hock Hua Bank in 2021. The acquisition triggered a mandatory takeover offer for the remaining LPI shares, completed in early December and still ongoing.
Simultaneously, Diona Teh Li Shian, youngest daughter of Tan Sri Hong Piow, revealed plans for the Teh family to reduce their Public Bank stake from 23.41% to 10% within five years. The reduction would comply with the Financial Services Act 2013, which caps individual ownership in financial institutions at 10%.
At 10%, the Teh family would become the bank’s second-largest shareholder after the Employees Provident Fund (EPF), which holds 14.8%, and ahead of the Retirement Fund Inc (KWAP) with 4.07%.
Public Bank shares hovered around RM4.57 at the time of reporting, valuing the Teh family’s holding at approximately RM20.77 billion.
6. Data Centre Investments Exceed RM75 Billion, Catalyzing Real Estate Transactions
Malaysia is rapidly becoming a key hub for data centers in the region, attracting massive investments exceeding RM75 billion in 2024 alone.
Global technology giants including Amazon Web Services Inc (AWS), Microsoft Corp, and Google have intensified their data center projects across Malaysia, contributing to a surge in industrial land acquisitions and lease transactions.
The influx reflects Malaysia’s appealing strategic location, established digital infrastructure, and government support for digital economy development.
This trend is expected to continue shaping Malaysia’s technology and real estate sectors, bolstering its position in the Southeast Asian digital ecosystem.
Outlook
The financial news of 2024 illustrates Malaysia’s dynamic and evolving economic landscape. From equity market rebounds and strategic privatisations to technological leadership and resource negotiations, the developments highlight key themes of resilience, strategic governance, and global integration.
Stakeholders across sectors are navigating challenges and opportunities that will define Malaysia’s economic trajectory in the years to come.
For ongoing updates and expert insights, continue following Smart Money Mindset.