Foreign Central Banks Lift Malaysian Bond Holdings to Record Share

Kuala Lumpur, 8 May 2026 – Foreign central banks and governments have increased their share of Malaysian sovereign bond holdings to a record level, reinforcing Malaysia’s growing appeal as a reserve-asset market during a volatile period for global investors.

The institutions owned 36% of Malaysia’s sovereign notes as of March 2026, the highest level in Bank Negara Malaysia data going back to 2015. This compares with 29.4% in March 2025, showing a meaningful rise in official-sector participation over the past year. Malaysian bonds have returned nearly 12% to US dollar-based investors over the same period, outperforming emerging-market peers in Asia.