Analysts are growing more optimistic that foreign funds will return to Malaysian equities, reversing a recent pattern in which foreign investors have rotated out of stocks and into ringgit-denominated debt. This programme differs fundamentally from quantitative easing (QE) during the Covid-19 period, as it is aimed at managing money market functioning rather than lowering long-term borrowing costs. That instance was dubbed “technical” QE, when there were signs of stress in the money market. Speaking with StarBiz, BIMB Securities Research director of research Mohd Redza Abdul Rahman also said the local equity market has seen a “slight uptick” of foreign shareholding. Net foreign withdrawals from Malaysian equities year-to-date (y-t-d) have surpassed those of Indonesia, Thailand, Vietnam and the Philippines.

Source: The Star December 25, 2025 01:35 UTC