Bond Market Updates

Summary The ongoing conflict in the Middle East has led to spillover effects beyond oil price fluctuations. In March, Brent crude oil prices surged to approximately USD99 per barrel, a significant rise compared to February’s average of USD69 per barrel. Disruptions at the Strait of Hormuz, a critical transit route for fertiliser, have also contributed […]

Summary Malaysia’s economy closed 2025 on a strong note, with 4Q2025 gross domestic product (GDP) growing by 6.3%, surpassing the advance estimate of 5.7% (3Q2025 actual: 5.4%). This lifted the full-year growth in 2025 to 5.2%, matching 2024’s pace (2024: 5.1%). Moving into 2026, economic momentum is underpinned by firmer external demand and steady private

Summary Malaysia ended 2025 on a strong footing, with its 4Q2025 gross domestic product (GDP) advance estimate rising by 5.7%, bringing full-year growth to an estimated 4.9%, above consensus expectations. Growth in 4Q2025 was broad-based, led by services (5.4%; 3Q2025: 5.0%) and manufacturing (6.0%; 3Q2025: 4.1%) due to strong external demand for electrical and electronic

Summary Malaysia’s external sector remains on a strong growth trajectory with exports growing at 7.0% in November (Oct: 15.7%). Growth was underpinned by resilient demand for electrical and electronic products (E&E) at 15.0% (Oct: 26.5%) as well as recovering petroleum exports. Performance with trading partners also remained robust, with shipments to China accelerating to 9.3%

Summary Malaysia’s full-year gross domestic product (GDP) growth is likely to reach the upper range of Bank Negara Malaysia’s (BNM) forecast (4.0%–4.8%), with the 3Q2025 GDP expanding by 5.2% (1H2025: 4.4%). The growth was supported by resilient private consumption and strong external demand. Exports sustained a double-digit growth in October at 15.7% (Sep: 12.2%), driven

Summary Malaysia’s advance estimates indicate stronger-than-expected gross domestic product (GDP) growth of 5.2% in 3Q2025 (2Q2025: 4.4%), exceeding the market consensus of 4.2%. Services grew 5.1% (2Q2025: 5.1%) on resilient consumption, manufacturing accelerated to 4.0% (2Q2025: 3.7%), and mining rebounded sharply to 10.9% (2Q2025: –5.2%) on stronger oil and gas output. Construction remained robust, expanding

Summary August 2025 imports contracted due to a 5.9% decline, while exports grew modestly by 1.9% to RM131.6 billion (July: +6.5%, RM140.1 billion), led by electrical and electronics (E&E), machinery and equipment, optical and scientific instruments, and palm-based agricultural products. Manufacturing activity showed tentative improvement, with Malaysia’s seasonally adjusted Purchasing Managers’ Index (PMI) rising to

Summary Malaysia’s gross domestic product (GDP) expanded by 4.4% in 2Q2025 (1Q2025: 4.4%), slightly below the advance estimate of 4.5%. Growth was supported by robust domestic demand, with private consumption accelerating to 5.3% (1Q2025: 5.0%) on the back of civil servant wage hikes and minimum wage increases. On the investment side, investment activity gained traction,

Summary Malaysia’s 2Q2025 gross domestic product (GDP) growth advance estimate was 4.5%, close to the 4.4% reported in 1Q2025. June’s exports continued to decline after a contraction in May, registering at -3.5% (May: -1.1%). Current data points to a potential broad-based slowdown in external demand, which may persist until a more favourable trade agreement is

Summary Headline inflation eased to 1.2% in May (Apr: 1.4%). The decline was driven by softer prices in food and beverages as well as housing, water, electricity and gas, while prices in the transportation sector remained unchanged from April amid lower global oil prices. Looking ahead, inflation may edge higher due to the 8% Sales