Malaysia’s Equity Market Poised For Stability, Growth In 2025

KUALA LUMPUR, Nov 27 (Bernama) -- Malaysia’s equity market is expected to maintain a stable outlook in 2025, supported by robust investment inflows, strong domestic consumption, and continued fiscal consolidation, said an analyst.

Franklin Templeton, emerging markets equity, assistant portfolio manager and senior research analyst Yi Ping Liao, said Malaysia has a stable outlook, with its economy benefiting from continued investments in data centres and manufacturing, alongside resilient domestic consumption driven by minimum wage increases and civil servant pay raises.

“The country’s political stability, with no elections expected until 2028, further enhances its appeal to investors.

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“Inflation in Malaysia remains well-contained, and fiscal consolidation efforts are providing additional reassurance to investors,” she said at the media webinar titled “2025 Investment Outlook: Perspectives from Asia and Beyond”, organised by Franklin Templeton, here today.

She noted that the nation’s strategic role as the ASEAN chair in 2025 is also expected to boost trade and regional collaboration, positioning Malaysia to navigate global economic uncertainties effectively.

Meanwhile, on the ringgit, Brandywine Global Investment Management portfolio manager and senior research analyst Carol Lye said the ringgit is forecasted to benefit from favourable domestic and global conditions bolstered by ongoing investments and a well-managed inflation environment.

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“The ringgit is anticipated to strengthen, benefiting from strong foreign direct investment inflows and stable domestic consumption.

“The ringgit stands to gain from a weaker US dollar if global economic dynamics, such as China’s recovery and potential collaboration with the US, materialise,” she said.

Additionally, Lye said the overvalued US dollar and Malaysia’s stable macroeconomic conditions create a conducive environment for the ringgit to perform better next year.

“Overall, Malaysia’s equity market and currency are set to capitalise on these supportive trends, providing a resilient investment destination amid global economic challenges,” she added.

 -- BERNAMA