Malaysia’s Equity Market Poised for Growth in 2025, Driven by Stable Outlook and Investor Confidence

Malaysia’s equity market is expected to see steady growth in 2025, buoyed by strong investment inflows, robust domestic consumption, and ongoing fiscal consolidation, according to Franklin Templeton analyst Yi Ping Liao. She highlighted Malaysia’s political stability, with no elections until 2028, as a key factor enhancing investor confidence.

The country’s economic resilience is supported by continued investments in sectors like data centres and manufacturing, along with wage increases for workers. Liao also noted that Malaysia’s strategic role as ASEAN chair in 2025 could further boost trade and regional collaboration.

On the currency front, Brandywine Global’s Carol Lye forecasted a strengthening of the Malaysian ringgit, driven by favorable domestic conditions, strong foreign direct investment, and a well-managed inflation environment. Lye added that the ringgit could benefit from a weaker US dollar and global economic shifts, making Malaysia an attractive investment destination in 2025.