Last updated on August 2, 2025
KUALA LUMPUR: Malaysian stocks closed mostly higher on Friday, driven by gains in banking and construction counters, as investors assessed the implications of the US tariff announcement and the unveiling of the 13th Malaysia Plan (13MP).
The FBM KLCI opened stronger at 1,519.87 and rebounded from Thursday’s losses to touch an intraday high of 1,533.10 before pausing for the midday break at 1,531.97. This came in contrast to a broader downtrend across Asian markets.
The ringgit weakened alongside most other regional currencies against the US dollar, while government bond yields remained stable.
Despite new US trade levies, Malaysia remains competitively positioned for foreign investment due to the relatively uniform tariff rates imposed across ASEAN, according to Hong Leong Investment Bank.
“Overall, this is a relatively favourable outcome, especially since markets had braced for a steeper 25% tariff,” the research house noted.
The US on Friday rolled out wide-ranging tariffs on imports from key trading partners, including a 19% duty on Malaysian goods. Similar rates were imposed on Thailand and the Philippines, while Vietnam faces a 20% tariff.
Meanwhile, market participants also digested the 13MP, tabled in Parliament on Thursday (July 31), in which the government pledged RM430 billion in development expenditure over five years, averaging RM86 billion annually until 2030.
CIMB Group Holdings Bhd (KL:CIMB) surged nearly 4% to RM6.80, leading financials, while Gamuda Bhd (KL:GAMUDA) climbed 4.2% to RM5.40 among construction stocks. Most other sectors also posted gains, although healthcare and telecom-media counters saw modest declines.
“The 13MP presents encouraging signals for the construction and renewable energy sectors, underpinned by a long-term infrastructure focus and the energy transition agenda,” said Phillip Capital.
The planned rise in development spending reinforces the government’s infrastructure priorities, enhancing project visibility for contractors, while the increased renewable energy targets support growth in green investments, it added.
