Summary

• Malaysia’s economy is expected to grow by 4.4% in 1Q2025, although moderating from 5.0% in the previous quarter. The growth in the first quarter was attributable to resilient domestic demand and construction activity that offset weaker performance in mining and manufacturing.
• The ringgit rebounded in April after initially weakening on tariff-related fears, supported by the 90-day pause in US tariffs and a broader lift in emerging market currencies on improved investor sentiment.
• Yields of Malaysian Government Securities (MGS) declined in April, led by a bull-steepening curve, with medium-term yields falling 12 to 15 basis points (bps), as monetary easing expectations gained traction.
• Equity markets saw net outflows of -RM4.7 billion in March as investors trimmed exposure amid rising geopolitical tensions and trade-related uncertainty, while bond markets recorded RM2.8 billion in net inflows, reflecting a shift toward safe-haven assets.
• Secondary bond market activity eased in April, with volumes falling across most segments, indicating cautious investor positioning amid global uncertainty.