KUALA LUMPUR, 2 September 2025 – Foreign investors have continued their retreat from Malaysian equities, marking an eighth consecutive week of net selling—this time pulling out a staggering RM1.41 billion, more than quadruple the prior week’s RM314.4 million, according to MBSB Research.
Net outflows were consistent across every trading session, ranging from RM95.4 million to RM510.1 million, with Tuesday accounting for the largest single-day withdrawal. The sequence of outflows follows hot on the heels of past weeks, signaling sustained diplomatic and economic caution among global investors.
Sector Shifts: Winners and Losers
Foreign money exited decisively from:
- Financial services – RM752.6 million
- Consumer products & services – RM279.9 million
- Utilities – RM159.4 million
Meanwhile, a few sectors still saw some interest from offshore investors, notably:
- Transportation & logistics – RM44.5 million
- Construction – RM30.6 million
- Industrial products & services – RM23.9 million
Domestic Players Step In
Local institutions extended their buying streak to five consecutive weeks, with net purchases totaling RM1.16 billion. Retail investors also returned to the market, reversing a two-week slump by injecting RM249.4 million.
What’s Driving the Outflows?
Analysts point to rising geographical uncertainty, recalibrated risk appetites, and shifts in global monetary policy as key factors behind the sustained foreign exodus. Malaysia’s reliance on traditional sectors—particularly banking and utilities—remains a structural challenge, limiting appeal amid global rotation toward tech and growth-focused equities.
Nevertheless, the stabilising presence of domestic institutional investors provides a buffer, ensuring support for the market in the face of external volatility.
