KUALA LUMPUR: RAM Ratings expects corporate bond issuance to remain healthy at RM110 billion-RM120 billion in 2025, supported by infrastructure financing and businesses’ funding needs.
The rating agency noted that corporate bond issuance surged to RM124.2 billion in 2024, surpassing the previous year’s RM118.3 billion, driven by the financial (RM51.7 billion) and real estate (RM19.9 billion) sectors.
It also forecasts Malaysian Government Securities (MGS) and Government Investment Issues (GII) issuance to ease further to RM155 billion-RM165 billion in 2025.
“This takes into account the government’s narrower deficit financing requirement, in line with its commitment to fiscal consolidation, as well as more moderate refinancing needs for maturing debts this year,” it said.
In 2024, gross issuance of MGS and GII moderated to RM176.7 billion, down from RM190.9 billion in 2023.
Meanwhile, the Malaysian bond market saw a more moderate foreign fund inflow of RM4.8 billion in 2024, compared with RM23.6 billion in 2023.
“While the bond market sell-off eased towards year-end, the US Federal Reserve’s less dovish stance and the recent downgrade of its rate cut expectations in December suggest a lack of catalyst in spurring foreign investor demand in 2025,” it added. – Bernama