Malaysia Bond and Sukuk: Quarterly Report 1Q2025

GOVERNMENT BOND AUCTION
Overview
 

Government bond auction for 1Q25 garnered an average BTC of 2.886x, surged from the previous quarter (4Q24: 1.991x). New issuance of MGII 7/40 marked the highest BTC at 4.289x. The new/reopening issuances for MGS/GII stood at RM45.50 billion, larger by 35.82% compared to the previous quarter (4Q24: RM33.50 billion). Outstanding amount of MGS/GII stood at RM1,235.92 billion, grew by 2.30% in Q1 2025 (4Q24: RM1,204.64 billion).  Domestic bond gained as Malaysia appeared relatively less impacted from Trump’s tariff blow during this period.

In the upcoming 2Q25, there will be two (2) new issuances and two (2) reopening of MGS. On the other hand, there will be two (2) new issuances and two (2) reopening of GII, totalling to four (4) new issuances and four (4) reopening.

 

FOREIGN HOLDINGS OF MGS AND GII
Overview 

The foreign net flow to MGS and GII in 1Q25 amounted to RM1.97 billion, -RM1.60 billion and RM3.05 billion in January, February and March respectively, with foreign investors turned net buyer. As of March 2025, the total foreign holdings of MGS and GII stood at RM258.35 billion (December 2024: RM254.92 billion), 1.33% higher from the previous quarter.

RM47.61 billion corporate bonds and sukuk were issued in 1Q25 (4Q24: RM48.57 billion), 1.97% lower than the previous quarter. The AA2/AA/P1/M1-rated bonds and sukuk recorded the biggest issuance at RM17.27 billion issuances, followed by government guaranteed bonds at RM9.65 billion issuances. For 1Q25, the largest corporate issuances were issued by CAGAMAS BERHAD, namely CAGAMAS IMTN 3.780% 24.03.2028 worth RM1.11 billion.

RATING OUTLOOK
 

There was zero (0) default and one (1) downgrade recorded in 1Q25. However, there were three (3) upgrade bonds/sukuk in the quarter.  ⬆️ Upgrade Segi Astana Sdn Bhd Malayan Cement Berhad MUFG Bank (Malaysia) Berhad's ⬇️ Downgrade Telekosang Hydro One Sdn Bhd

 

Source: MARC, RAM and BIX Malaysia

BOND STATISTICS
Overview 

Outstanding Amount by Bond Classes
 

As of March 2025, the outstanding amount of Government conventional bond and Government Sukuk stood at RM644.62 billion and RM604.80 billion, respectively. The conventional Quasi-govt outstanding amount stood at RM19.17 billion, much smaller compared to its Shariah-compliant counterpart of RM347.80 billion. For corporate issuances, the conventional bond outstanding amounted RM117.96 billion while the corporate Sukuk was recorded higher at RM411.12 billion.

Disclaimer

This report has been prepared and issued by Bond and Sukuk Information Platform Sdn Bhd (“the Company”). The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs and should seek appropriate personalized financial advice from a qualified professional to suit individual circumstances and risk profile.

 The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, the Company does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.