Malaysia’s stock market, once labeled the “world’s worst” in 2019 due to a slump in investor confidence, is now making a comeback. A combination of factors such as robust economic growth, rising foreign direct investment (FDI), and a surge in foreign interest, particularly from US tech giants like Nvidia, Google, and Microsoft, have helped lift the Bursa Malaysia’s benchmark index by 17% over the past year.
The market, which had languished for nearly a decade due to political instability and lackluster economic performance, has seen renewed investor enthusiasm. In 2024, 289,000 new trading accounts were opened, nearly double those in 2023. Malaysia’s southern state of Johor has been named the fastest-growing data center market in Southeast Asia, and IPOs are also on the rise, with 34 new listings so far this year.
Despite potential risks like global financial market volatility and political concerns, experts believe that the market has significant room for growth. Malaysia’s Prime Minister Anwar Ibrahim’s relatively stable government and a favorable economic environment, including controlled inflation and consistent OPR levels, have further bolstered confidence. However, market veterans caution against over-enthusiasm, warning that foreign investors may pull out at the first sign of trouble. Nonetheless, the outlook remains positive for the coming months.
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