Top Financial News of 2024: A Year of Remarkable Growth and Change in Malaysian Markets

Date: Saturday, June 14, 2025
Location: Bursa, SGX

As 2024 drew to a close, Malaysia witnessed an unprecedented recovery in its financial landscape, marked by significant growth in equities, a strengthened currency, and critical developments in its infrastructure and economic policies. This year has been characterized by transformative shifts in the market, with the Kuala Lumpur Composite Index (FBM KLCI) showcasing its best annual performance in over a decade.

Malaysian Equities Experience Robust Rally

Investor confidence surged in 2024 as Malaysia rebounded from years of political uncertainty that had stalled economic progress. The FBM KLCI achieved an impressive annual gain of 12.58%, a feat not seen since 2010. This remarkable performance propelled the market capitalization of Malaysian equities above RM2 trillion in May, a historic milestone attributed to robust corporate earnings and renewed foreign investment.

Key financial players, including YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd, contributed significantly to this rally. The benchmark index also adjusted to a higher valuation multiple of 15.7 times forward price-to-earnings ratio (PER), surpassing its three-year average of 14.3 times.

In addition to equity growth, the Malaysian ringgit displayed considerable strength. By September, the currency appreciated by 11.4%, peaking at 4.124 against the US dollar. A broader effort by Bank Negara Malaysia to promote the repatriation of overseas investment income and encourage conversion of export proceeds into ringgit further bolstered the currency’s performance.

Despite a shaky start in early January, characterized by steep declines in stocks linked to investor Datuk Dr. Yu Kuan Chon, stability returned by February, setting the stage for the remarkable year that followed.

Controversy Surrounds MAHB’s Proposed Privatisation

The privatisation of Malaysia Airports Holdings Bhd (MAHB) emerged as a contentious issue in 2024, following an announcement in May regarding a takeover offer by a consortium led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF). This proposition prompted protests, particularly due to concerns surrounding Khazanah’s connections with Global Infrastructure Partners (GIP) and the Abu Dhabi Investment Authority (ADIA).

The Malaysian government defended the move, arguing that it was a strategic decision aimed at enhancing MAHB’s operational capabilities. However, independent directors of MAHB expressed skepticism in a circular released in December, suggesting that the RM11 per share offer did not reflect the company’s full potential. Contrastingly, independent advisor Hong Leong Investment Bank viewed the offer as reasonable, albeit unfair, based on the company’s valuation.

U Mobile Takes the Lead in Malaysia’s 5G Rollout

In a surprising decision, the Malaysian Communications and Multimedia Commission (MCMC) appointed U Mobile Sdn Bhd as the leader for the country’s second 5G network rollout. This selection prompted debates on transparency and the implications of foreign investment in critical telecommunications infrastructure, with Temasek Holdings being U Mobile’s largest shareholder.

Subsequently, Temasek announced plans to sell a majority stake to Mawar Setia, a company linked to Malaysian tycoon Tan Sri Vincent Tan, further complicating the shareholding structure and raising questions regarding compliance with regulations regarding foreign ownership in Malaysian telecom companies.

Sarawak Seeks Greater Control over Gas Resources

Amid rising tensions, Sarawak pushed for increased control over its gas resources this year. The state aimed for Petroleum Sarawak Bhd (Petros) to take over the role of gas aggregator, a responsibility currently held by national oil company Petronas. Given Sarawak’s significant reserves, the state government advocated for enhanced local control to better manage resources and distribute gas affordably.

Prime Minister Datuk Seri Anwar Ibrahim remarked on the ongoing dialogue between federal and state leaders, emphasizing a sustainable resolution that reflects the interests of both parties and safeguards the overall oil and gas ecosystem in Malaysia.

Teh Family Reduces Stake in Public Bank Amid Major Stock Acquisition

In a significant move, Public Bank Bhd confirmed in October its acquisition of a 44.15% stake in LPI Capital Bhd from the family of its late founder, Tan Sri Teh Hong Piow. This RM1.72 billion transaction marked the bank’s first major merger since acquiring Hock Hua Bank Bhd in 2021. Diona Teh Li Shian, the founder’s youngest daughter, indicated plans for the Teh family to reduce its stake in Public Bank to 10% over the next five years, raising questions about the financial institution’s future governance and alignment with regulatory requirements.

Data Centre Investments Surge in Malaysia

Finally, 2024 saw an influx of over RM75 billion in investments aimed at establishing data centres across Malaysia. Major global players including Amazon Web Services, Microsoft, and Google have begun or planned developments that establish Malaysia as a pivotal hub for digital infrastructure in the region.

Conclusion

The multifaceted financial landscape of Malaysia in 2024 illustrated both significant ups and downs within the economic and political spheres. As the government and private sectors navigate these changes, many stakeholders are left contemplating the future trajectory of the nation’s economy amidst evolving investment climates.

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