Malaysia - Market Strategy

[winston]

Norway's sovereign wealth fund trims Malaysian equity exposure, ramps up investments in bonds

By Emir Zainul

The fund trimmed its holdings to 209 Malaysian stocks worth US$2.53 billion by June-end.

That compares to 217 firms valued at US$2.71 billion on its books as at end 2024.

Investments in several counters were also increased, most notably in Pentamaster Corp Bhd (KL:PENTA), which rose to 5.07% from 1.62%.

By asset classes, 70.6% of the fund was invested in equities and 27.1% in fixed income. Unlisted real estate made up 1.9% of its assets and the remaining 0.4% was in unlisted renewable energy infrastructure.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/766620

[winston]

Positive outlook for 2026

Malaysia’s 2026 outlook is turning increasingly upbeat, buoyed by fiscal consolidation, targeted subsidy reforms and structural investment momentum that could anchor stronger growth and a firmer ringgit over the next year.

We expect Bank Negara Malaysia to stay on hold in November, with scope for easing in the first quarter (1Q) of 2026 if non-electrical and electronics exports weaken.

Finance Minister II highlighted the potential for the ringgit to strengthen to just below four against the US dollar within 12 months.

The Finance Ministry views the JS-SEZ as a focal point for data centres, back-office relocations and high-value manufacturing.

It observed that public expenditure is projected at RM470bil in 2026 – a mildly expansionary yet disciplined stance – with greater reliance on GLIC and PPP funding for infrastructure.

Petroleum-related revenue is projected to decline from 16.9% (2025) to 12.5% (2026) of total revenue, offset by stronger sales and service tax collections (RM59.6bil) and e-invoicing enforcement to reduce leakages.

Source: The Star

https://www.thestar.com.my/business/bus ... k-for-2026