KUALA LUMPUR: RHB Investment Bank Bhd (RHB IB) has projected that the FTSE Bursa Malaysia KLCI (FBM KLCI) will rise to 1,820 points by the end of 2025, citing a strong domestic macroeconomic outlook and enhanced corporate earnings as key drivers.
According to BERNAMA News Agency, RHB IB’s market strategy report outlines a favorable equity outlook for 2025, driven by both global and domestic growth factors, robust liquidity conditions, steady corporate earnings, and attractive valuations. The report highlights stable politics, reform progress, and new growth initiatives as central to fostering a positive investment climate. Additionally, news regarding foreign direct investment (FDI) and domestic direct investment (DDI) is expected to further enhance the investment environment.
RHB IB has acknowledged potential near-term uncertainties stemming from possible policy changes by United States President-elect Donald Trump. The report notes that if Trump’s aggressive campaign promises are implemented, there could
be significant implications for risk assets in emerging Asia. Nonetheless, RHB IB maintains a positive outlook for the local market, bolstered by a strong domestic economic forecast and ample liquidity from local institutions.
The bank also anticipates that increased foreign direct investments, significant infrastructure spending, and higher disposable income due to civil service pay raises will boost consumption through enhanced spending power. RHB IB points to various thematic plays, such as those in Johor and Sarawak, data center-related investments, infrastructure, trade recovery, commodity sectors, semiconductor and electronic manufacturing services (EMS), and trade tension diversion, as promising areas for small to mid-cap segments once risk sentiment improves.
Industries with a positive outlook, according to RHB IB, include property, construction, consumer goods, logistics, oil and gas, plantation, renewable energy, and technology. The report emphasizes that ongoing major infrastructure projects and
rising property sales, alongside growth in industrial properties and data center-related jobs, will continue to underpin the property and construction sectors.