Top Financial News Highlights of 2024: A Year of Resilience and Strategic Moves in Malaysia
As 2024 draws to a close, Malaysia’s financial landscape has been marked by significant developments spanning equity market surges, major privatization moves, strategic telecommunications advancements, and monumental investment inflows. Here’s a comprehensive look at the most impactful financial news of the year:
- Malaysian Equities and Ringgit Post Best Performance in Years
After years overshadowed by political uncertainties, Malaysia’s investor sentiment turned decisively upbeat in 2024, culminating in the FBM KLCI (FTSE Bursa Malaysia Kuala Lumpur Composite Index) gaining an impressive 12.58%. This marks its strongest annual performance since 2010 and elevated the market capitalization of Malaysian stocks past the RM2 trillion milestone in May—a watershed moment for the nation’s capital markets.
Contributing factors included robust corporate earnings and renewed foreign investment inflows, buoyed by Malaysia’s economic resilience and better-than-expected trade figures. Leading the rally were blue-chip companies such as YTL Power International Bhd, Tenaga Nasional Bhd, and CIMB Group Holdings Bhd. The benchmark index’s valuation reflected increased confidence, trading at a forward price earnings ratio of 15.7 times, above its three-year average of 14.3 times as of end-2023. The Malaysian ringgit also enjoyed a substantial boost, appreciating up to 11.4% against the US dollar in September to an intra-year high of 4.124, before settling at 4.472—still a healthy 2.84% rise year-to-date. Factors supporting ringgit strength included Bank Negara Malaysia’s policies encouraging repatriation of overseas earnings and conversion of export proceeds.
The year had a rocky start, with a sharp sell-off in stocks linked to investor Datuk Dr Yu Kuan Chon in January, prompting tighter margin financing regulations. Despite this volatility, the FBM KLCI exhibited resilience, with losses limited to 0.8%, and rebounded swiftly by February, setting the stage for a stellar market performance.
- Controversial MAHB Privatisation Proposal Sparks Debate
Malaysia Airports Holdings Bhd (MAHB) captured headlines when a consortium led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF) proposed taking the airport operator private at RM11 per share in May. This offer followed a 35-year extension of MAHB’s airport management concession to 2069, granted in March.
The consortium, which also includes Global Infrastructure Partners (GIP) and Abu Dhabi Investment Authority (ADIA), would see Khazanah increase its stake to 40% and EPF to 30%, with ADIA and GIP holding the remaining 30%. The government will retain special share rights.
Controversy arose due to concerns over GIP’s connections to BlackRock, which some critics alleged had geopolitical implications. BlackRock finalized its acquisition of GIP in October. The government defended the privatisation as a strategic move to unlock MAHB’s potential.
On December 21, MAHB’s five independent directors publicly advised shareholders to reject the offer, stating it undervalued MAHB when compared to its financial momentum and growth prospects. This stance contrasted with an independent adviser, Hong Leong Investment Bank, which recommended accepting the offer based on MAHB’s depressed share price, though it agreed the offer price was below its estimated fair value of RM12.61 to RM13.71 per share. The consortium maintained its RM11 offer despite these critiques.
- U Mobile Selected to Lead Malaysia’s Second 5G Network: Ownership Questions Emerge
In a surprise move by the Malaysian Communications and Multimedia Commission (MCMC), U Mobile Sdn Bhd was selected in November to spearhead deployment of the country’s second 5G network. The choice ahead of larger incumbent operators triggered debates on transparency and raised concerns about foreign influence in critical telecommunications infrastructure.
Notably, Singapore’s state-owned investment firm Temasek holds the largest shareholding in U Mobile at approximately 48.25% through subsidiaries. Following the announcement, Temasek’s affiliate ST Telemedia revealed plans to reduce its stake to 20% by transferring a majority stake to Mawar Setia, a company controlled by local tycoon Tan Sri Vincent Tan and the Sultan’s daughter, Tunku Tun Aminah Sultan Ibrahim.
However, ambiguities over foreign ownership limits—a 49% cap for telcos—have fueled speculation. Temasek disclosed certain convertible instruments that may add to its influence, leading to reports that its effective stake could reach as high as 71%. ST Telemedia affirmed its stake complies with disclosures submitted to the Malaysian Company Commission, keeping the situation under close scrutiny.
- Sarawak’s Push for Gas Aggregator Role Intensifies Resource Control Debate
Sarawak made significant moves in 2024 to enhance state-level control over its abundant natural gas reserves. The push to appoint Petroleum Sarawak Bhd (Petros) as the exclusive gas aggregator—responsible for procuring, distributing, and managing gas supplies within the state—challenged the existing role of national oil giant Petronas.
Holding 60% of Malaysia’s gas reserves, Sarawak accounted for RM6 billion in oil & gas-related revenue in 2023—nearly triple the amount recorded just four years earlier—underlining its expanding economic clout. Meanwhile, Petronas’ gas segment contributed substantially to its RM81 billion group profit, providing sizeable dividends to the federal government.
Prime Minister Datuk Seri Anwar Ibrahim stated on December 21 that neither federal nor Sarawak state leadership views Petros as having exclusive control over all gas supply decisions. The ongoing discussions underscore the delicate balance between state autonomy, federal interests, and the future of Malaysia’s oil and gas sector.
- Teh Family Sells LPI Capital Stake to Public Bank, Plans to Reduce Bank Holdings
A notable merger and acquisition unfolded in October as Public Bank Bhd agreed to acquire the full 44.15% stake in general insurer LPI Capital Bhd held by the late founder Tan Sri Teh Hong Piow’s family. The RM1.72 billion deal (RM9.80 per share) marked Public Bank’s first major acquisition since its 2021 purchase of Hock Hua Bank Bhd and triggered a mandatory takeover offer for remaining LPI shares, which was completed in early December.
Simultaneously, Diona Teh Li Shian, the founder’s youngest daughter, announced plans to pare down the family’s stake in Public Bank from 23.41% to 10% over five years. This move aims to comply with the Financial Services Act 2013, which limits individual shareholdings in financial institutions to a maximum of 10%.
Should this reduction occur, the Teh family will become Public Bank’s second-largest shareholder, trailing the Employees’ Provident Fund (EPF) with 14.8%. Public Bank shares were steady at RM4.57 per share, valuing the Teh family’s current holding at approximately RM20.77 billion.
- Massive Data Centre Investments Propel Malaysia as Regional Tech Hub
Further cementing its reputation as a technology investment hotspot, Malaysia attracted over RM75 billion in data centre investments in 2024. Global technology leaders—including Amazon Web Services Inc (AWS), Microsoft Corp, and Google—have significantly expanded their regional presence, driving a surge in land acquisitions and infrastructure development.
This influx not only fuels the nation’s digital economy ambitions but also promises to accelerate related industries, enhance connectivity, and generate employment opportunities nationwide.
Conclusion
The developments of 2024 reflect Malaysia’s evolving financial and economic landscape marked by resilience, ambitious infrastructure projects, and complex negotiations reflecting broader geopolitical and domestic policy considerations. As the nation moves into 2025, these trends are poised to shape Malaysia’s future trajectory in equity markets, energy policy, telecommunications, and technological development.