Top Financial Developments of 2024 in Malaysia

Published on April 14, 2025

As the financial landscape of Malaysia continues to evolve, the year 2024 has marked a significant turning point characterized by recovery, structural changes, and strategic moves that have captured the attention of both local and international investors. Here, we delve into the top financial stories that shaped Malaysia in 2024. ## Malaysian Equities and Currency Experience Upsurge

The Malaysian stock market witnessed an impressive recovery as investor sentiment surged in 2024. Emerging from a turbulent political landscape that had cast uncertainty over business and economic policies, Malaysian equities displayed remarkable resilience. The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) recorded a notable 12.58% gain over the year, marking its best annual performance since 2010. The rally was propelled by robust corporate earnings, an influx of foreign investments, and surprisingly positive trade data that enhanced the overall outlook for the Malaysian economy. In May, the market capitalization of Malaysian stocks surpassed the RM2 trillion mark for the first time, signaling a reinvigorated market.

Prominent contributors to this rally included YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd. The FBM KLCI also traded at a higher valuation multiple of 15.7 times forward price-earnings ratio (PER), compared to its three-year average of 14.3 times as of December 30. The Malaysian ringgit also showed signs of strength, appreciating by as much as 11.4% against the US dollar to reach an intra-year high of 4.124 in September. Although it later stabilized around 4.472, this still represented a year-to-date increase of 2.84%. The increase in the currency’s strength was attributed to the central banking authority’s encouragement for businesses to repatriate overseas income and convert earnings back into ringgit.

Despite a rocky start to 2024, where certain stocks linked to investor Datuk Dr Yu Kuan Chon suffered massive declines, market stability returned by February, paving the way for a successful year.

MAHB’s Controversial Privatisation Plan

In a highly publicized move, Malaysia Airports Holdings Bhd (MAHB) announced a proposed privatisation plan following the extension of its airport management concession until 2069. In May, the company revealed that it had received a RM11 per share offer from a consortium led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF).

While the government advocated the strategic rationale behind the move to unlock MAHB’s potential, the proposal faced significant backlash due to concerns regarding the consortium’s ties to BlackRock. Protests erupted amid accusations relating to the geopolitical implications of such a privatisation. Nevertheless, in December, the independent directors of MAHB declared that the offer undervalued the company’s growing financial momentum and urged shareholders to reject the offer, contrasting the recommendation from independent advisers who deemed the offer reasonable under current market conditions.

U Mobile’s 5G Deployment Sparks Shareholding Concerns

In November, the Malaysian Communications and Multimedia Commission (MCMC) appointed U Mobile Sdn Bhd to spearhead the country’s second 5G network deployment. This unexpected decision ignited debates amid concerns about transparency and foreign influence in critical telecommunications infrastructure, given that U Mobile’s largest shareholder is Temasek Holdings of Singapore.

Shortly after the MCMC announcement, it was revealed that Temasek planned to reduce its stake in U Mobile from approximately 48.25% to 20% via a sale to Mawar Setia. The details surrounding the shareholding structure raised eyebrows, especially since foreign shareholdings in Malaysian telcos are capped at 49%. The blurred lines regarding Temasek’s effective ownership further fueled questions about compliance with regulatory frameworks.

Sarawak’s Push for Gas Aggregation

Sarawak made significant strides towards claiming more control over its gas resources, advocating for Petroleum Sarawak Bhd (Petros) to assume the aggregator role for gas supplies within the state. Encompassing 60% of Malaysia’s gas reserves, the current aggregator role is held by the national oil company, Petroliam Nasional Bhd (Petronas).

Prime Minister Datuk Seri Anwar Ibrahim stated that there needs to be a cooperative approach between state and federal government concerning the organization of gas supply and distribution. As Sarawak’s oil and gas-related revenues surged, the future of the O&G ecosystem within the state remained a focal point of interest for investors and policymakers alike.

Teh Family’s Strategic Shift with Public Bank

In October, Public Bank Bhd announced it would acquire a 44.15% stake in LPI Capital Bhd held by the family of its late founder for RM1.72 billion. This move—Public Bank’s most significant merger and acquisition since 2021—alters the landscape within which the Teh family operates, as they plan to divest their stake in the bank from 23.41% to 10% over the coming five years in compliance with the Financial Services Act.

The changes are significant, as the Teh family currently comprises the largest shareholder and will transition to the second largest behind the EPF. The shares of Public Bank remained relatively stable following the announcement, showcasing confidence within the market.

Surge in Data Centre Investments

Finally, Malaysia stands poised to become a regional leader in data center investments, attracting substantial capital influxes exceeding RM75 billion. Notable global players such as Amazon Web Services, Microsoft, and Google are rapidly expanding their operations in the nation. This surge in investment has propelled land deals and development projects, emphasizing Malaysia’s growing significance in the technology infrastructure landscape.

As Malaysia navigates an evolving financial environment marked by recovery, strategic moves, and regulatory changes, stakeholders within and outside the country are set to watch its developments closely in the coming months. Each of these stories highlights not only the challenges faced but also the opportunities that lie ahead in the dynamic MSI market landscape.

Share this article: