Top Financial News Highlights of 2024
Date: June 11, 2025
In 2024, Malaysia’s financial landscape experienced significant shifts, marked by remarkable recoveries in equities, prominent corporate movements, and redefined roles in critical sectors. Here are some of the most notable developments that shaped the financial news over the past year.
Malaysian Equities and Currency Surge
After a tumultuous period characterized by political instability and economic uncertainty, Malaysian equities rebounded sharply in 2024, culminating in the FBM KLCI index achieving an impressive annual gain of 12.58%. This rise represents the best performance for the benchmark index since 2010, illustrating a renewed investor confidence.
In a noteworthy milestone, the market capitalization of Malaysian stocks surpassed the RM2 trillion mark in May, bolstered by strong corporate earnings, increased foreign investment inflows, and encouraging trade data. Key players in this growth included YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd, contributing to an uptick in the benchmark’s valuation multiple to 15.7 times forward price-to-earnings ratio (PER), above its three-year average of 14.3 times.
Additionally, the Malaysian ringgit experienced one of its strongest years, appreciating up to 11.4% against the US dollar, before stabilizing at 4.472 by year-end. The monetary policies enacted by Bank Negara Malaysia aimed at encouraging the repatriation of foreign earnings played a crucial role in this currency strength. Despite a rocky start to the year, where significant losses were recorded in certain investor-linked stocks, stability returned by February, paving the way for this impressive market performance.
Controversial Privatisation of Malaysia Airports Holdings Bhd
In a significant corporate development, Malaysia Airports Holdings Bhd (MAHB) received a controversial offer from a consortium led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF) to take the airport operator private. This offer came right after the government extended MAHB’s airport management concession for an additional 35 years.
The RM11-per-share proposal raised eyebrows amid political and social concerns, particularly due to associations with Global Infrastructure Partners (GIP) and Abu Dhabi Investment Authority (ADIA), both partners in the consortium. The deal has spurred protests linked to GIP’s connection to BlackRock, which faced allegations regarding its stance on geopolitical issues.
Despite mixed reactions, including a circular from MAHB’s independent directors advising against acceptance of the offer citing a lack of reflection of MAHB’s potential, the consortium maintained its position. The ongoing discussions highlight the contentious nature of privatization moves in public services and their implications for Malaysia’s economic future.
U Mobile’s Role in Malaysia’s 5G Deployment Raises Shareholding Concerns
The appointment of U Mobile Sdn Bhd to lead the establishment of Malaysia’s second 5G network sparked significant debate in November, primarily due to the selection of the smaller operator over industry giants. The Malaysian Communications and Multimedia Commission (MCMC) justified its choice based on U Mobile’s successful track record, despite concerns regarding transparency and foreign influence.
U Mobile’s largest shareholder, Singapore’s Temasek Holdings, holding a 48.25% stake, drew scrutiny given the strict 49% foreign ownership limit applicable to Malaysian telecommunications companies. Following this, Temasek announced plans to reduce its stake to 20%, which raised further questions about its actual influence in the company and compliance with Malaysian regulations.
The complexity surrounding the share distribution has highlighted the challenges in navigating foreign investment regulations, particularly in crucial sectors like telecommunications.
Sarawak’s Control Over Gas Resources
This year, Sarawak’s quest for more control over its gas resources culminated in calls for Petroleum Sarawak Bhd (Petros) to assume the role of aggregator in gas supply, previously held by national oil company Petronas. Sarawak aims to harness its significant gas reserves to boost local energy availability and affordability.
The ramifications of this move extend beyond local interests, potentially impacting national fiscal revenues and the ongoing operations of Petronas. Government leaders have begun deliberating the future of the state and federal relationships in managing natural resources, given the importance of oil and gas revenues to the national economy.
Teh Family’s Stake Sale to Public Bank and Future Plans
In a noteworthy transaction, Public Bank Bhd announced the acquisition of a 44.15% stake in LPI Capital Bhd from the Teh family, valued at RM1.72 billion. This acquisition marked a significant corporate maneuver for the bank, which also resulted in a mandatory takeover offer for remaining shares.
Moreover, the Teh family signaled plans to reduce its stake in Public Bank from 23.41% to 10% in compliance with regulations. This strategic divestment positions the family as the second-largest shareholder after the EPF, reflecting ongoing efforts to align with financial regulations and alter ownership dynamics in the Malaysian banking sector.
Surge in Data Centre Investments
Finally, 2024 witnessed a remarkable rise in investment in Malaysia’s data centre industry, with over RM75 billion reportedly pumped into the sector. Major technology companies such as Amazon Web Services, Microsoft, and Google have intensified their focus on Malaysia, enhancing the country’s status as a prospective hub for digital infrastructure.
This influx of investments is likely to accelerate land deals and drive further economic activity, cementing Malaysia’s position in the competitive landscape of data services and digital technology.
As these developments unfold, stakeholders will be keenly observing their implications for Malaysia’s financial landscape and overall economic trajectory.
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