Foreign Investors Extend Buying Streak In Malaysia’s Corporate Bonds - Economist
By Nurunnasihah Ahmad Rashid
KUALA LUMPUR, March 12 (Bernama) -- Despite global market volatility, foreign investors have remained net buyers of Malaysia’s Private Debt Securities (PDS) for five consecutive months, underscoring confidence in the country’s corporate bond market.
Citing economic data from Riverbank Macro Insights, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investor appetite for corporate bonds remains strong, with primary issuances seeing oversubscription rates of up to seven times.
“This trend reflects continued confidence in Malaysia’s corporate debt instruments despite broader risk aversion in global financial markets,” he told Bernama.
He noted that while foreign investors have been net sellers in the local fixed-income market, particularly in government bonds, the resilience of the PDS market highlights Malaysia’s appeal as a stable investment destination.
He said the cumulative inflows of PDS totalled RM4.2 billion from October 2024 to February 2025, with October 2024 and November 2024 each at RM0.5 billion, December 2024 at RM1.7 billion, January 2025 at RM0.7 billion, and February 2025 at RM0.8 billion.
In February 2025, net foreign outflows from Malaysian fixed-income assets totalled RM1.1 billion, driven largely by Government Investment Issues (GII), which saw net sales of RM1.4 billion, he said.
Meanwhile, Malaysian Government Securities (MGS) recorded a smaller outflow of RM200 million.
Mohd Afzanizam said strong demand for corporate bonds reflects the attractiveness of Malaysia’s private sector debt, supported by solid corporate fundamentals and favourable interest rate expectations.
“The upcoming Federal Open Market Committee meeting on March 18-19 and Bank Negara Malaysia’s Annual Report release on March 24 are expected to provide further clarity on the country’s economic trajectory.
“As market conditions evolve, Malaysia’s corporate bond market remains a bright spot, demonstrating resilience amid shifting global investment trends,” he added.
-- BERNAMA