KUALA LUMPUR: 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.
According to BERNAMA News Agency, Franklin Templeton’s emerging markets equity assistant portfolio manager and senior research analyst Yi Ping Liao noted that Malaysia’s economy is benefiting from continued investments in data centres and manufacturing. This is complemented by resilient domestic consumption driven by increases in the minimum wage and civil servant pay raises. The absence of elections until 2028 further enhances Malaysia’s appeal to investors by providing political stability.
Inflation in Malaysia remains well-contained, and fiscal consolidation efforts are providing additional reassurance to investors. Liao shared these insights during a media webinar titled ‘2025 Investment Outlook: Perspectives from Asia and Beyond’, organised by Franklin Templeton.
Furthermore, Malaysia’s strateg
ic role as the ASEAN chair in 2025 is expected to boost trade and regional collaboration. This positioning will enable Malaysia to navigate global economic uncertainties effectively.
Meanwhile, on the ringgit, Brandywine Global Investment Management portfolio manager and senior research analyst Carol Lye highlighted that the currency is forecasted to benefit from favourable domestic and global conditions. Ongoing investments and a well-managed inflation environment are seen as supporting factors.
Lye mentioned that the ringgit is anticipated to strengthen due to strong foreign direct investment inflows and stable domestic consumption. Additionally, 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.
Lye also remarked that 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.