Top Financial News of 2024: Malaysia’s Market Resurgence and Key Corporate Developments
As 2024 draws to a close, Malaysia’s financial landscape has witnessed significant developments, showcasing the resilience and dynamism of its economy. From a remarkable equity market turnaround to strategic corporate maneuvers and transformative infrastructure investments, the year has been pivotal in shaping Malaysia’s economic trajectory. Here is a comprehensive overview of the top financial news and insights from 2024. 1. Malaysian Equities and Currency Achieve Best Performance in Years
One of the standout stories of 2024 was the sharp recovery in Malaysian investor sentiment, consolidating the country’s position as an emerging market of interest. Following years of political uncertainty that dampened business confidence, the local equity market rebounded impressively.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI), once criticized as “the world’s worst major market” back in 2019, surged by 12.58% in 2024. This marked its best annual gain since 2010 and propelled the market capitalization of Malaysian stocks beyond the RM2 trillion threshold for the first time in May.
Key factors underpinning this growth included robust corporate earnings, renewed foreign inflows, and positive economic indicators such as improved trade data. Major contributors to the rally were prominent companies including YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd. The benchmark index also traded at a forward price-earnings ratio (PER) of 15.7 times, exceeding its three-year average of 14.3 times as of year-end.
The Malaysian ringgit strengthened significantly, appreciating up to 11.4% at its intra-year peak against the US dollar in September before moderating slightly to trade at 4.472, still reflecting a 2.84% year-to-date gain. This currency strength was supported by Bank Negara Malaysia’s initiatives encouraging repatriation of overseas investment income and conversion of export proceeds into ringgit.
However, the year began on a rocky note when shares linked to investor Datuk Dr. Yu Kuan Chon experienced sharp declines, leading to tighter margin financing rules. Despite this volatility, the FBM KLCI demonstrated resilience, closing the episode with only a marginal loss, then rebounding robustly through the rest of the year.
- Controversy Surrounds Malaysia Airports Holdings Bhd (MAHB) Privatisation
March 2024 saw Malaysia Airports Holdings Bhd (MAHB) secure a 35-year extension of its concession to manage 39 airports nationwide—a significant move solidifying its long-term operational role. Yet in May, MAHB announced receipt of a privatisation offer at RM11 per share by a consortium led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF).
The consortium also included Global Infrastructure Partners (GIP) and Abu Dhabi Investment Authority (ADIA). Upon completion, Khazanah and EPF’s stakes would increase substantially, while the Malaysian government would retain special share rights.
The proposal sparked intense debate, primarily due to concerns surrounding GIP’s relationship with BlackRock, which was in the process of acquiring GIP at the time. BlackRock faced criticism from some quarters over alleged political stances. The government defended the move as strategic to unleash MAHB’s full potential.
In December, all five MAHB independent directors advised shareholders against accepting the offer, stating it undervalued the company amidst its strong growth trajectory. This contrasted with the independent adviser, Hong Leong Investment Bank, which deemed the offer reasonable though somewhat undervalued.
Despite opposition, the consortium maintained its offer price, highlighting past performance and challenges faced by MAHB as rationale.
- U Mobile’s 5G Leadership Raises Foreign Ownership Concerns
In November, the Malaysian Communications and Multimedia Commission (MCMC) surprised industry watchers by selecting U Mobile Sdn Bhd to lead the country’s second 5G network rollout. U Mobile’s selection, over larger competitors, prompted debate over transparency and raised scrutiny regarding foreign influence in critical telecommunications infrastructure.
Singapore’s Temasek Holdings remains U Mobile’s largest shareholder with a 48.25% stake, held through subsidiaries, sparking questions due to Malaysia’s 49% foreign ownership cap for telecom companies.
Following this, Temasek announced plans to reduce its stake to 20% via a sale to Mawar Setia—a company owned by Malaysian tycoon Tan Sri Vincent Tan and royal family member Tunku Tun Aminah Sultan Ibrahim. Nonetheless, confusion persisted on the actual ownership percentages, with reports estimating Temasek’s effective control up to 71% when factoring certain convertible instruments.
MCMC and involved parties have aimed to clarify compliance with ownership rules amidst ongoing industry scrutiny.
- Sarawak’s Push for Greater Control Over Gas Resources
The year was marked by increasing tensions over gas supply management in Sarawak, home to 60% of Malaysia’s gas reserves. The state government advocated for Petroleum Sarawak Bhd (Petros) to assume the role of gas aggregator within Sarawak, a function currently managed by national oil company Petronas.
Gas aggregation entails procuring natural gas and developing distribution infrastructure, with Sarawak aiming to expand affordable gas access to power its industries.
This move raised concerns regarding the impact on Petronas’ operations and dividend contributions, vital to the federal revenue. In 2023, Sarawak’s O&G revenues nearly tripled to RM6 billion, reflecting strategic tax and compensation adjustments, while Petronas contributed RM40 billion in dividends representing a significant portion of national income.
Prime Minister Datuk Seri Anwar Ibrahim emphasized that the issue required collaborative resolution, signaling ongoing dialogue to balance state and federal interests in Malaysia’s energy sector.
- Teh Family’s Stake Sale in LPI Capital and Public Bank Shareholding Plans
In October, Public Bank Bhd announced 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 marked the bank’s first major merger and acquisition since 2021 and triggered a mandatory takeover offer for remaining LPI shares.
Furthermore, Diona Teh Li Shian revealed plans to reduce the family’s Public Bank stake from 23.41% to 10% within five years, complying with the Financial Services Act 2013, which limits individual ownership in financial institutions.
Upon completion, the Teh family would become the second-largest shareholder behind the Employees Provident Fund (EPF). Despite these changes, Public Bank shares maintained stable prices, valuing the family’s current stake at approximately RM20.77 billion.
- Malaysia’s Rise as Data Centre Hub Spurs Over RM75 Billion Investment
Malaysia is rapidly establishing itself as a regional data centre hub, attracting massive investments from global technology giants, including Amazon Web Services (AWS), Microsoft, and Google. These developments have contributed to a surge in land transactions, as demand for state-of-the-art data storage and cloud computing infrastructure intensifies.
The influx of over RM75 billion in data centre investments reflects Malaysia’s strategic advantage driven by stable connectivity, competitive costs, and supportive government policies aimed at digital economy growth.
Looking Ahead
2024 has demonstrated Malaysia’s capacity to recover and thrive amid regional and global challenges. From equity market rallies and major corporate restructuring to strategic infrastructure partnerships and ongoing debates over resource control, the country is positioning itself for sustained economic growth and innovation.
As key stakeholders continue navigating complex political and business landscapes, the foundation is set for Malaysia to consolidate its gains and pursue new opportunities in the coming years.
— Smart Money Mindset Editorial Team