Kuala Lumpur, 12 March 2026 – Malaysia’s financial markets continue to demonstrate resilience despite heightened global uncertainty, supported by steady inflows from exporters and investors, according to the Financial Markets Committee (FMC) of Bank Negara Malaysia.
In a statement following its latest meeting on March 10, the committee noted that inflows from exporters and foreign direct investment have helped offset outflows from domestic importers, helping stabilise the country’s financial markets during a period of geopolitical volatility.
“Overall, FMC members observed that Malaysian markets demonstrate resilience amid this period of global uncertainty,” the committee said, while cautioning that risks remain should geopolitical tensions persist.
Ringgit Gains Despite Global Risk Sentiment
The Malaysian ringgit has remained relatively firm, rising about 2.5% year-to-date as of March 9, even though it weakened around 1.8% against the US dollar since late February as investors shifted funds toward safe-haven assets amid Middle East tensions.
The currency was trading around 3.9260 per US dollar, stronger compared with about 4.05 at the start of the year, reflecting improving sentiment toward Malaysian assets.
Bond and Equity Markets Remain Stable
Malaysia’s government bond market has also shown stability. Yields on the benchmark 10-year Malaysian Government Securities (MGS) rose 11 basis points, largely in line with global bond market movements, while remaining near historically low levels.
Demand for government bonds remains strong, supported by both domestic investors and foreign participation. The committee noted that government bond auctions have recorded a healthy average bid-to-cover ratio of 2.7 times, indicating robust investor appetite.
Meanwhile, the FBM KLCI has remained relatively stable, declining about 2.5%, suggesting that Malaysia’s equity market has weathered global volatility better than many regional peers.
Strong Capital Market Flows
Foreign participation in Malaysia’s capital markets has remained steady. Non-resident holdings of Malaysian Government Securities increased by RM920 million year-to-date, maintaining a stable share of about 21.2% of outstanding bonds.
The domestic equity market has also attracted RM1.5 billion in foreign inflows so far in 2026, reflecting continued investor confidence in Malaysia’s growth prospects and structural reforms.
Policies Supporting Market Stability
The FMC highlighted several initiatives aimed at supporting two-way capital flows and strengthening Malaysia’s financial markets. These include the Qualified Resident Investor (QRI) programme and ongoing engagement with government-linked companies, government-linked investment companies and corporates.
The committee said these initiatives, combined with Malaysia’s improving economic outlook, are expected to continue supporting the ringgit and domestic financial markets through 2026.
Despite global uncertainties linked to geopolitical tensions and trade developments, policymakers believe Malaysia’s financial markets remain well-positioned to maintain stability and investor confidence in the months ahead.
