Top Financial News in Malaysia for 2024
Thursday, 08 May 2025
BURSA & SGX – A Year of Significant Developments
As Malaysia navigated through various economic and political challenges in 2024, it emerged with a renewed investor sentiment, marking a remarkable turnaround. After years of turbulence, the country’s equity markets and currency extended their best runs in years, showcasing a robust performance in both local and international arenas.
Malaysian Equities Witness Remarkable Recovery
2024 has been marked as a significant year for Malaysian equities, particularly for the FTSE Bursa Malaysia KLCI (FBM KLCI), which surged by 12.58%. This gain represents the index’s best annual performance since 2010, moving past its earlier struggles that had earned it the moniker of “the world’s worst major market” just a few years prior in 2019. In May, market capitalization for Malaysian stocks surpassed the RM2 trillion mark for the first time. Factors contributing to this resurgence included solid corporate earnings, renewed foreign inflow into the Malaysian market, and a general optimism concerning the country’s economic outlook. Noteworthy companies such as YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd were significant contributors to this growth.
Moreover, the Malaysian ringgit displayed resilience, appreciating as much as 11.4% to an intra-year high of 4.124 against the US dollar in September before adjusting to trade at 4.472. This rise was bolstered by improved economic fundamentals and the efforts of Bank Negara Malaysia encouraging local businesses to repatriate investments and convert export earnings back into ringgit.
The year, however, did not commence on a high note. Following an alarming decline in stocks linked to investor Datuk Dr. Yu Kuan Chon, where significant losses were observed in companies like Rapid Synergy Bhd and YNH Property Bhd, tighter margin financing rules were enforced. Yet, the FBM KLCI managed to stabilize, setting the stage for a strong performance.
Controversial Privatisation of Malaysian Airports
In a sensitive development, Malaysia Airports Holdings Bhd (MAHB) announced a proposal for privatisation from a consortium led by Khazanah Nasional Bhd and the Employees Provident Fund. The proposal, offering RM11 per share, aims to take MAHB private after a contract extension allowing the company to manage the country’s airports until 2069. This announcement ignited public debate, particularly due to the involvement of Global Infrastructure Partners and the Abu Dhabi Investment Authority, drawing attention to GIP’s connections with BlackRock, a firm that faced scrutiny for its alleged political affiliations. The independent advisory board opposed the offer, suggesting it undervalued MAHB given its positive forecasts, while another advisor deemed the proposal fair but noted it to be below MAHB’s estimated valuation.
U Mobile Chosen for 5G Network Development
In another impactful decision, U Mobile was selected to lead the development of Malaysia’s second 5G network by the Malaysian Communications and Multimedia Commission (MCMC). This unexpected choice raised eyebrows considering U Mobile’s smaller scale compared to other mobile operators in the country. With Temasek Holdings as its largest stakeholder, the decision has led to heightened scrutiny regarding foreign influences in Malaysia’s telecommunications sector.
Controversy arose when Temasek announced plans to reduce its stake in U Mobile, which raised questions about compliance with Malaysia’s foreign ownership regulations in telecommunications. MCMC affirmed that U Mobile’s success track record warranted its selection, despite ongoing debates about transparency in the selection process.
Sarawak’s Focus on Gas Resource Management
2024 also saw the state of Sarawak pushing for a larger role in managing its gas resources. An ongoing dispute exists regarding the role of Petroleum Sarawak Bhd (Petros) as the gas aggregator for the state, taking over from national oil company Petroliam Nasional Bhd (Petronas). With Sarawak sitting on 60% of Malaysia’s gas reserves, the implications of this move are significant both economically and politically, raising concerns about how it might impact Petronas and the federal government’s revenue.
In December, Prime Minister Anwar Ibrahim emphasized that decisions on gas supply would not rest solely with Petros, highlighting the need for collaboration between federal and state authorities to resolve these pressing issues in the oil and gas sector.
Teh Family Sells LPI Stake to Public Bank
Public Bank Bhd announced its acquisition of a 44.15% stake in LPI Capital Bhd from the Teh family, valued at RM1.72 billion. This acquisition not only marks a significant transaction in Malaysia’s banking sector but also signals the Teh family’s intention to reduce their holdings in Public Bank from 23.41% to 10% over the next five years in compliance with regulatory requirements. The deal aligns with the Financial Services Act 2013, which caps individual stakes within financial institutions.
Surge in Data Centre Investments
As Malaysia positions itself as a regional hub for technology, investments exceeding RM75 billion have poured into the data centre sector. Tech giants, including Amazon Web Services, Microsoft, and Google, are leading this charge, contributing to a surge in land deals and infrastructure development aimed at fostering growth in this burgeoning industry.
Overall, the financial landscape in Malaysia for 2024 has been marked by remarkable recoveries, strategic economic pivots, and significant corporate transactions, setting a promising direction for the future. As the country continues to navigate these developments, the ensuing months will be critical in determining long-term impacts on the Malaysian economy.
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