Top Financial News of 2024: A Year of Resurgence and Transformation for Malaysian Markets
Date: April 4, 2025
In what has been called the most significant recovery for Malaysian equities and currency in years, 2024 proved to be a transformative year for the nation’s financial landscape. Coming off a tumultuous political climate that previously cast doubt on business and economic policies, investor sentiment in Malaysia rebounded sharply, leading to impressive gains across the board.
Malaysia’s Equities Experience Unprecedented Growth
The FBM KLCI (FTSE Bursa Malaysia Kuala Lumpur Index), once criticized as “the world’s worst major market” in 2019, recorded a remarkable 12.58% growth in 2024, marking its best annual performance since 2010. This resurgence propelled the market capitalisation of Malaysian stocks past the RM2 trillion mark for the first time in May, fueled by robust corporate earnings and a surge in foreign investment inflows. Optimism surrounding Malaysia’s economic prospects, underscored by better-than-expected trade data, further underpinned this rally.
Key contributors to this positive performance included prominent companies like YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd. Notably, by the end of 2024, the benchmark index was trading at a forward price-to-earnings (PER) ratio of 15.7 times, an increase from its three-year average of 14.3 times as of December 30. Another significant aspect of Malaysia’s recovery was the strengthening of the ringgit, which appreciated by 11.4% to reach an intra-year high of 4.124 against the US dollar in September. Although it later retreated slightly, the currency remained 2.84% up year-to-date. Encouraging policies from Bank Negara Malaysia, encouraging local businesses to repatriate overseas investment income, also contributed to this financial rebound.
While the year commenced on a more uncertain note with a sharp decline in stocks associated with investor Datuk Dr Yu Kuan Chon, market stability returned by February, paving the way for an outstanding year ahead.
Controversy Surrounds MAHB’s Privatisation Plans
Malaysia Airports Holdings Bhd (MAHB) was at the center of significant attention in 2024 following the announcement of its proposed privatisation. Shortly after winning a 35-year concession extension to operate the nation’s 39 airports, MAHB received an offer from a consortium led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF) to take the company private at RM11 per share.
This offer, however, sparked controversy and led to public disquiet due to perceived links between GIP, a consortium partner, and BlackRock, an investment firm facing accusations related to political alignments. The Malaysian government defended the privatisation process, outlining its strategic intent to unlock MAHB’s potential. Yet, independent directors expressed disagreement, stating that the offer did not reflect MAHB’s true value, especially against its robust financial backdrop.
U Mobile Selected for 5G Deployment Amid Shareholding Concerns
In a surprising decision, the Malaysian Communications and Multimedia Commission selected U Mobile Sdn Bhd to spearhead the rollout of the country’s second 5G network. U Mobile’s ascendancy over larger competitors raised eyebrows and questions about the transparency of the selection process, particularly due to the firm’s significant shareholder, Temasek, a state-owned investment firm from Singapore.
Adding to the intrigue, Temasek announced it would reduce its stake in U Mobile amid caps on foreign ownership in Malaysian telecommunications. The situation raised questions not only about foreign influence on critical infrastructure but also clarity surrounding U Mobile’s ownership structure.
Sarawak’s Push for Control Over Gas Resources
In a significant move reflecting its determination for greater autonomy, Sarawak positioned Petroleum Sarawak Bhd (Petros) as a potential aggregator of the state’s gas resources, challenging the current role played by Petronas. This initiative garnered immense debate regarding its implications for both Sarawak’s autonomy and Petronas’ established operations. As discussions unfolded, state leaders indicated the necessity for a resolution that balances both local governance and national interests within Malaysia’s lucrative oil and gas sector.
Major Transactions Signal Shift in Financial Landscape
The Teh family’s decision to sell its substantial 44.15% stake in LPI Capital Bhd to Public Bank for RM1.72 billion stirred the market in late 2024. This acquisition, which includes a mandatory takeover offer for remaining shares, highlighted a strategic pivot as the family plans to realign its holdings to comply with regulatory caps on individual ownership in financial institutions.
Data Centre Investments Surge as Malaysia’s Tech Landscape Evolves
2024 also saw over RM75 billion funneled into Malaysia’s burgeoning data centre sector, as leading tech giants such as Amazon, Microsoft, and Google aimed to capitalize on the nation’s strategic position in digital infrastructure. This influx of investment has prompted a surge in land acquisition activity as companies position themselves to accommodate the growing demand for data services.
Conclusion
As 2024 draws to a close, Malaysia’s financial landscape emerges from a year of significant recovery and transformation, characterized by impressive market performance, strategic corporate movements, and evolving dynamics within key industries. As stakeholders look to the future, the developments of this year lay the groundwork for potential growth and expansion in the Malaysian economy.
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