Top Financial News Highlights in Malaysia for 2024
Tuesday, 15 July 2025 — Smart Money Mindset presents a comprehensive review of the top financial developments that shaped Malaysia’s economic landscape throughout 2024. From surging equity markets and high-profile privatisations to landmark telecommunications decisions and strategic energy management disputes, here are the key stories that defined the year.
- Malaysian Equities and Currency Achieve Their Best Performance in Years
In 2024, Malaysia witnessed one of its strongest financial market rebounds in over a decade. The FBM KLCI, Malaysia’s benchmark stock index, recorded a remarkable 12.58% increase—the highest annual gain since 2010. This marked a significant recovery from its 2019 status as “the world’s worst major market.” The bullish trend saw the total market capitalisation of Malaysian stocks breach the RM2 trillion mark for the first time in May, driven by factors such as robust corporate earnings, renewed foreign investment inflows, and encouraging economic data, particularly better-than-expected trade figures.
Top contributors to the rally were major corporations including YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd. The benchmark index’s valuation also rose, trading at a forward price-earnings ratio (PER) of 15.7 times compared to its three-year average of 14.3 times as of end-2023. The Malaysian ringgit experienced notable appreciation, strengthening by as much as 11.4% against the US dollar, hitting an intra-year high of 4.124 in September. Although the currency later eased to trade at 4.472 amid slower US interest rate cuts, it remained up 2.84% year-to-date. Contributing to this currency strength was a policy push by Bank Negara Malaysia encouraging businesses to repatriate overseas earnings and convert export proceeds back into ringgit.
Despite a turbulent start to the year—with significant value losses in stocks linked to investor Datuk Dr Yu Kuan Chon precipitating tightened margin financing rules—stability quickly returned by February. This set the stage for a stellar market performance for the rest of the year.
- Controversial Privatisation Proposal for Malaysia Airports Holdings Bhd (MAHB)
Malaysia Airports Holdings Bhd (MAHB) made headlines in 2024 following a proposal to privatize the airport operator. This came just months after MAHB secured a 35-year concession extension, through to 2069, allowing it to manage the country’s 39 airports.
A consortium led by Khazanah Nasional Bhd (the government’s sovereign wealth fund) and the Employees Provident Fund (EPF) offered RM11 per share to take MAHB private. Additional consortium partners included Global Infrastructure Partners (GIP) and Abu Dhabi Investment Authority (ADIA). With this deal, Khazanah’s stake would increase to 40%, while EPF’s would rise to 30%. The Malaysian government also retains special share rights in MAHB.
The privatisation proposal stirred controversy, notably due to GIP’s links to asset manager BlackRock, which faced accusations of pro-Zionist bias amid the ongoing geopolitical tensions in Palestine. BlackRock completed its acquisition of GIP in October.
In late December, all five independent directors of MAHB issued a circular urging shareholders to reject the offer, arguing that the RM11 bid undervalued the company’s growth potential and financial momentum. This stance differed from the recommendation of independent adviser Hong Leong Investment Bank, which advised acceptance based on the company’s historically suppressed share price but still acknowledged the offer was below estimated fair value (between RM12.61 and RM13.71 per share).
The consortium confirmed it would maintain its offer despite these concerns.
- U Mobile Selected to Lead Malaysia’s Second 5G Network Amid Foreign Ownership Questions
The Malaysian Communications and Multimedia Commission (MCMC) surprised many in November by awarding U Mobile Sdn Bhd the contract to spearhead the deployment of Malaysia’s second 5G network. U Mobile’s selection over larger established telecommunications providers sparked debate and raised questions about the transparency of the bidding process.
Further scrutiny focused on U Mobile’s foreign ownership structure. Singapore’s state-owned investment arm, Temasek Holdings, is U Mobile’s largest shareholder, holding 48.25% via Straits Mobile Investments Pte Ltd, a subsidiary of Temasek’s ST Telemedia.
Shortly after the contract award, ST Telemedia announced plans to significantly reduce its stake to 20% by selling a majority stake to Mawar Setia, a company jointly owned by Malaysian tycoon Tan Sri Vincent Tan and Tunku Tun Aminah Sultan Ibrahim, the daughter of the King of Malaysia. The ambiguity around the term “majority stake,” coupled with the 49% foreign ownership cap in Malaysian telecommunications companies, fueled speculation that Temasek’s effective ownership could be as high as 71%, including convertible instruments.
ST Telemedia maintained that its reported stake was consistent with disclosures to Malaysian authorities, while Temasek confirmed Mawar Setia would hold approximately 51% of U Mobile post-transaction.
- Sarawak’s Push for Greater Control Over Gas Resources Sparks Industry Debate
In 2024, Sarawak intensified efforts to gain greater autonomy over its abundant natural gas reserves, advocating for its state-owned Petroleum Sarawak Bhd (Petros) to become the official gas aggregator, handling procurement and distribution within the state. This would transition the role from national oil company Petronas, which historically managed Malaysia’s oil and gas resources.
Sarawak contains 60% of the country’s gas reserves, and the state government, led by Abang Johari, has expressed ambitions to increase access to affordable gas throughout Sarawak as part of broader economic development plans.
The proposed shift stirred debate nationally, as it could impact Petronas’ gas operations, federal government revenue reliant on Petronas dividends, and the overall oil and gas ecosystem. Petronas reported that gas sales—including liquefied natural gas—accounted for 37% of its RM81 billion group profit in 2023, with RM40 billion paid out in dividends that year.
On 21 December, Prime Minister Datuk Seri Anwar Ibrahim emphasized that neither the federal government nor Sarawak’s leadership intends for Petros to have unilateral control over the gas supply.
Stakeholders continue to closely monitor negotiations to resolve this critical matter with potentially far-reaching consequences for Malaysia’s energy sector.
- Teh Family Sells LPI Capital Stake to Public Bank, Plans to Reduce Holdings
In a significant move affecting Malaysia’s financial sector, Public Bank Bhd announced in October its acquisition of the entire 44.15% stake held by the family of the late Tan Sri Teh Hong Piow in general insurer LPI Capital Bhd for RM1.72 billion (RM9.80 per share). This marked Public Bank’s first major merger and acquisition since acquiring Hock Hua Bank Bhd in 2021. The acquisition triggered a mandatory takeover offer for the remaining LPI Capital shares, completed in early December, with the offer still ongoing.
Diona Teh Li Shian, youngest daughter of the late founder, simultaneously revealed plans for the Teh family to reduce their Public Bank holding from 23.41% to 10% over five years. This move aims to comply with the Financial Services Act 2013, which caps individual ownership in financial institutions at 10%.
At a 10% stake, the Teh family would become the second-largest shareholder after the Employees Provident Fund, which held 14.8% as of 19 December.
Following the announcement, Public Bank’s share price remained steady at RM4.57, valuing the family’s current stake at approximately RM20.77 billion.
- Malaysian Data Centre Sector Sees Over RM75 Billion Investment Surge
Malaysia is rapidly solidifying its position as a regional hub for data centres, attracting over RM75 billion in investments during 2024. This influx is spearheaded by global tech giants including Amazon Web Services (AWS), Microsoft, and Google, fueling a surge in land transactions as demand for high-tech infrastructure soars.
The growth of data centre investments not only reflects the digital transformation sweeping Southeast Asia but also provides significant economic opportunities through job creation, technology advancement, and increased global competitiveness for Malaysia.
As the government and private sector continue to prioritize this strategic industry, Malaysia is projected to see substantial benefits from its emerging status as a critical data infrastructure provider in the region.
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The above developments illustrate a year of robust recovery, bold strategic initiatives, and pivotal challenges for Malaysia’s economy and financial markets. Stakeholders across sectors remain watchful as these key stories continue to evolve in 2025 and beyond. Smart Money Mindset will keep you updated with the latest insights and analyses on Malaysia’s financial landscape.