Top Financial News of 2024: Malaysia’s Market Rebound, Strategic Moves, and Industry Developments
Saturday, 05 July 2025
2024 proved to be a pivotal year for Malaysia’s financial landscape, marked by significant developments across equities, infrastructure privatisation, telecommunications, natural resources, banking, and data centres. Below is a detailed overview of the most impactful financial news stories that shaped Malaysia’s economic trajectory during the year.
- Malaysian Equities and Ringgit Post Best Performance in Years
After years of political uncertainty that dampened investor confidence, Malaysia’s equity markets experienced a remarkable turnaround in 2024. The FBM KLCI index surged 12.58%, achieving its strongest annual gain since 2010. This rally propelled the total market capitalisation of Malaysian stocks beyond the RM2 trillion threshold for the first time in May.
Key drivers behind this upswing included robust corporate earnings, a resurgence of foreign investment inflows, and optimism about Malaysia’s economic outlook — underpinned by better-than-expected trade figures. Notable contributors were major corporations such as YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd. The index’s valuation rose to a forward price-to-earnings ratio of 15.7 times, compared with the three-year average of 14.3 times.
Simultaneously, the Malaysian ringgit experienced notable strength, appreciating by as much as 11.4% against the U.S. dollar to an intra-year high of 4.124 in September. Although gains moderated to 4.472 against the dollar by year-end, the ringgit still showed a 2.84% year-to-date increase. Contributing to this currency appreciation was Bank Negara Malaysia’s policy encouraging businesses to repatriate overseas earnings and convert export proceeds into ringgit.
Despite a sharp sell-off in specific shares linked to investor Datuk Dr. Yu Kuan Chon early in the year, which led to tightened margin financing regulations and a brief decline in the FBM ACE Index, the benchmark FBM KLCI demonstrated resilience, recovering quickly to set the stage for a robust performance throughout the remainder of the year.
- Controversial Privatisation Proposal for Malaysia Airports Holdings Berhad (MAHB)
Malaysia Airports Holdings Berhad (MAHB), the operator managing 39 airports nationwide, became the focus of intense scrutiny following a proposed privatisation plan. After securing a 35-year extension to its airport concession in March, MAHB revealed in May a buyout offer at RM11 per share from a consortium comprising Khazanah Nasional Bhd, Employees Provident Fund (EPF), Global Infrastructure Partners (GIP), and Abu Dhabi Investment Authority (ADIA).
The deal would see Khazanah increasing its stake from 33.2% to 40%, EPF from 7.9% to 30%, with GIP and ADIA holding the remaining 30%. The federal government intended to retain special share rights over MAHB.
However, the privatisation move was met with controversy, partly due to GIP’s acquisition by BlackRock — a company that faced criticism including allegations around geopolitical issues. The government maintained that the privatisation was a strategic effort to unlock MAHB’s full potential and boost operational improvements.
On December 21, MAHB’s independent directors issued a circular advising shareholders against accepting the offer, arguing it undervalued the company considering its positive financial trajectory and growth plans. This contrasted with independent adviser Hong Leong Investment Bank’s recommendation advocating acceptance based on the current suppressed share price, despite deeming the offer below fair value.
The consortium reiterated its commitment to the RM11 per share offer, citing the independent directors’ failure to adequately factor in MAHB’s performance and challenges.
- U Mobile Chosen to Lead Malaysia’s Second 5G Network Amid Foreign Ownership Concerns
In November, the Malaysian Communications and Multimedia Commission (MCMC) selected U Mobile Sdn Bhd to spearhead the deployment of Malaysia’s second 5G network, surprising many given the company’s smaller scale relative to big telecom players.
While MCMC justified its decision based on U Mobile’s track record, lingering questions about transparency remained. Complex issues around foreign ownership also surfaced, as U Mobile’s largest shareholder is Singapore’s state-owned investment firm Temasek, holding 48.25% of shares through subsidiaries.
Shortly after the announcement, Temasek’s affiliate ST Telemedia indicated plans to reduce its stake to 20% by selling a majority stake to Mawar Setia, associated with tycoon Tan Sri Vincent Tan and Tunku Tun Aminah Sultan Ibrahim, daughter of the King. Confusion ensued regarding shareholding percentages and compliance with Malaysia’s 49% foreign ownership cap for telecommunications companies.
Clarifications suggested Mawar Setia would hold about 51% post-sale, but Temasek’s effective stake, including convertible instruments, might reach up to 71%. ST Telemedia maintained its holdings comply with disclosures to regulatory authorities, but the situation continues to invite scrutiny.
- Sarawak’s Push for Greater Control Over Gas Resources Sparks Industry Debate
Sarawak took bold steps to assert increased control over its significant natural gas reserves, which constitute around 60% of Malaysia’s total gas resources. The state aimed to transfer the role of gas aggregator — responsible for procuring and distributing natural gas within Sarawak — from national oil company Petronas to Petroleum Sarawak Bhd (Petros).
This move, grounded in the Distribution of Gas Ordinance 2016, was part of Sarawak’s broader ambition to deliver affordable gas energy across the state. The plan sparked mixed reactions, with supporters advocating for local empowerment and critics raising concerns about potential impacts on Petronas, the federal government’s finances, and investment prospects in Malaysia’s oil and gas sector.
Sarawak’s oil and gas-related revenue surged to over RM6 billion in 2023, nearly tripling from RM2.11 billion in 2019. Petronas’ gas operations contributed 37% of the company’s RM81 billion profit in 2023, enabling a RM40 billion dividend payment to the federal government, constituting approximately 12% of federal revenue.
Prime Minister Datuk Seri Anwar Ibrahim commented in December that neither he nor the Sarawak leadership intended for Petros to unilaterally control the state’s gas supply and distribution, highlighting ongoing negotiations to resolve the complex issue with minimal disruption to the local energy ecosystem.
- Teh Family’s Strategic Stake Sale in Public Bank and LPI Capital
In a major move within Malaysia’s banking sector, Public Bank Bhd announced it would acquire the entire 44.15% stake in general insurer LPI Capital Bhd held by the family of the late founder, Tan Sri Teh Hong Piow. Valued at RM1.72 billion, the acquisition triggered a mandatory takeover offer for the remaining LPI shares and was completed in early December.
Diona Teh Li Shian, the youngest daughter of Hong Piow, also revealed plans for the Teh family to reduce their stake in Public Bank from 23.41% to 10% over five years. The family intends to comply with the Financial Services Act 2013, which limits individual shareholdings in financial institutions to a maximum of 10%.
At this reduced stake, the Teh family would become the second-largest shareholder in Public Bank, behind the Employees Provident Fund (14.8%) and ahead of Retirement Fund Inc (4.07%). Despite these changes, Public Bank’s share price remained relatively stable around RM4.57 in late December, valuating the Teh family’s holding at approximately RM20.77 billion.
- Malaysia’s Data Centre Boom: Over RM75 Billion in Investments Fuel Land Acquisitions
The year closed with Malaysia solidifying its position as a regional hub for data centres. Leading global technology firms such as Amazon Web Services Inc (AWS), Microsoft Corp, and Google have significantly expanded their data infrastructure investments in the country.
Cumulative investments exceeding RM75 billion have generated a surge in land transactions, driven by the demand for state-of-the-art data centre facilities. This influx supports Malaysia’s growing digital economy and underscores the nation’s strategic role in Southeast Asia’s technology and cloud service sector.
Conclusion
The financial news of 2024 highlights Malaysia’s dynamic and evolving economic environment. From a remarkable equities market rebound and contentious corporate privatisations to strategic moves in telecommunications, natural gas governance, and banking ownership restructures, the year demonstrated resilience and complexity. Meanwhile, the expanding digital infrastructure investments position Malaysia for continued growth in a global knowledge-based economy.
Smart Money Mindset will continue to monitor these critical developments as Malaysia navigates opportunities and challenges in the coming years.