Top Financial News of 2024: A Year of Recovery and Change in Malaysia
Date: Saturday, 21 June 2025
Location: Bursa, SGX
Author: CEO Morning Brief
As 2024 drew to a close, Malaysia’s financial landscape transformed dramatically, emerging from a challenging political climate with renewed investor confidence. This article highlights significant developments across Malaysia’s economy, including stock performance, privatization controversies, regulatory changes, and burgeoning investments.
Malaysian Equities and Currency Exhibits Resilience
In 2024, Malaysian equities enjoyed a remarkable recovery, recording their best performance since 2010. The FTSE Bursa Malaysia KLCI index (FBM KLCI) surged by 12.58%, leading to a historic breaching of the RM2 trillion market capitalisation mark in May. Following a period of uncertainty that had cast doubt on business and economic policies, investor sentiment was reinvigorated, largely attributable to improved corporate earnings and foreign investment inflows.
Notable contributors to this resurgence included YTL Power International Berhad, Tenaga Nasional Berhad, and CIMB Group Holdings Berhad. The benchmark index further exhibited a valuation increase, with a forward price-earnings ratio of 15.7 times, up from an average of 14.3 times over the previous three years.
Alongside equities, the Malaysian ringgit strengthened considerably, appreciating up to 11.4% to an intra-year peak of 4.124 against the US dollar in September. Although it later settled at 4.472—a 2.84% year-to-date increase—the currency’s rally was bolstered by Bank Negara Malaysia’s advocacy for firms to repatriate overseas investments.
Despite a rocky beginning to the year, where investor-linked companies saw significant losses, a stabilized market by February signaled the start of a fruitful period.
Controversy Surrounds MAHB Privatization Offer
In a high-profile case, Malaysia Airports Holdings Berhad (MAHB) found itself in the midst of controversy following a RM11 per share buyout proposal from a consortium led by Khazanah Nasional Berhad and the Employees Provident Fund (EPF). Following a recent extension of its airport management concession until 2069, this potential privatisation has spurred protests, primarily due to accusations against the consortium’s partner, Global Infrastructure Partners (GIP), for alleged links to BlackRock.
Independent directors of MAHB advised shareholders against the offer, arguing it did not reflect the company’s growth potential. In contrast, an independent adviser considered the proposal reasonable, citing MAHB’s long-suppressed share price. The outcome of this contentious negotiation remains to be seen, as public opinion and shareholder interests collide.
U Mobile Chosen for Malaysia’s Second 5G Network Amid Stakeholder Scrutiny
The Malaysian Communications and Multimedia Commission’s decision to appoint U Mobile Sdn Bhd as the leader for the country’s second 5G network deployment raised eyebrows. The announcement prompted inquiries into the procurement process’s transparency, especially following revelations about U Mobile’s biggest shareholder being Singapore’s state-owned investment firm, Temasek.
The subsequent announcement of Temasek selling its majority stake while still retaining substantial indirect ownership has led to confusion regarding foreign ownership regulations in Malaysian telecommunications. The debate continues over the implications for national security and market competitiveness.
Sarawak Gas Aggregator Dispute
Sarawak’s move to assert more control over its gas resources, by positioning Petroleum Sarawak Berhad (Petros) as the primary aggregator of gas supply, has ignited distinct discussions on the role of national oil company Petronas. With Sarawak harboring 60% of Malaysia’s gas reserves, the implications for economic control, revenue generation, and political autonomy are substantial.
The proposal has garnered mixed reactions, with some supporting increased Sarawak control while others raise concerns regarding the impact on Petronas—and by extension, the federal government’s revenue stream from oil and gas operations.
Teh Family Sells LPI Stake to Public Bank
In a significant move within Malaysia’s banking sector, Public Bank Berhad has acquired a 44.15% stake in LPI Capital Bhd from the family of its late founder, Tan Sri Teh Hong Piow. The RM1.72 billion acquisition is Public Bank’s most notable merger since its previous purchase of Hock Hua Bank Bhd in 2021. Simultaneously, the Teh family announced its intention to reduce their stake in Public Bank from 23.41% to 10% over the next five years. This shift aims to comply with the Financial Services Act, which caps individual ownership in financial institutions.
Surge in Data Centre Investments
2024 marked a dramatic influx of over RM75 billion in investments towards data centres in Malaysia. Major tech giants, including Amazon Web Services, Microsoft, and Google, are amplifying their footprint in the region, boosting local land deals significantly. This expansion is not only indicative of investor confidence but also highlights Malaysia’s growing stature as a data management hub in Southeast Asia.
Conclusion
The financial narrative of Malaysia in 2024 is one of resilience, rapid transformations, and emerging opportunities amid challenges. As stakeholders navigate controversies and embrace new technologies, the nation’s economic future appears poised for growth and development. The coming months will reveal how these dynamics shape Malaysia’s long-term economic trajectory.