Malaysia Bond and Sukuk: Quarterly Report 1Q2026

GOVERNMENT BOND AUCTION
Overview
 

Government bond auction for 1Q26 garnered an average BTC of 2.215x, increased from the previous quarter (4Q25: 2.090x). Reopening of MGS 06/31 marked the highest BTC at 2.921x. The new and reopening issuances of MGS/GII amounted to RM45.0 billion in Q1 2026, reflecting surged by 38.46% compared to the previous quarter (Q4 2025: RM32.5 billion). The outstanding amount of MGS/GII stood at RM1.309 trillion and grew by 1.47% in Q1 2026 (4Q25: RM1.290 trillion).

In the upcoming 2Q26, there will be one (1) new issuance and four (4) reopening of MGS. Similarly, there will be one (1) new issuance and four (4) reopening of GII, totalling to two (2) new issuances and eight (8) reopening.

 

FOREIGN HOLDINGS OF MGS AND GII
Overview 

TThe foreign net flow to MGS and GII in 1Q26 amounted to RM2.14 billion, -RM0.83 billion and RM3.84 billion in January, February and March respectively, with foreign investors turned net buyer. As of March 2026, the total foreign holdings of MGS and GII stood at RM283.10 billion (December 2025: RM277.95 billion), 1.85% higher from the previous quarter.

RM57.29 billion corporate bonds and sukuk were issued in 1Q26 (4Q25: RM76.10 billion), 24.72% lower than the previous quarter. The AA2/AA/P1/M1-rated bonds and sukuk recorded the biggest issuance at RM17.70 billion issuances, followed by AAA-rated bonds at RM12.67 billion issuances. For 1Q26, the largest corporate issuances were issued by MAYBANK ISLAMIC BERHAD, namely MAYBANKISLM IMTN 3.750% 07.02.2033 worth RM2.00 billion.

RATING OUTLOOK
 

There were zero (0) default recorded in 1Q26. However, there were four (4) upgrades and one (1) downgrade for bonds/sukuk in the quarter. ⬆️ Upgrade YTL Corporation Berhad YTL Power International Berhad Country Garden Real Estate Sdn Bhd Leader Energy Sdn Bhd ⬇️ Downgrade MCIS Insurance Berhad

 

Source: MARC, RAM, FAST and BIX Malaysia

BOND STATISTICS
Overview 

Outstanding Amount by Bond Classes
 

As of March 2026, the outstanding amount of Government conventional bond and Government Sukuk stood at RM695.36 billion and RM625.30 billion, respectively. The conventional quasi-govt outstanding amount stood at RM19.90 billion, much smaller compared to its Shariah-compliant counterpart of RM360.59 billion. For corporate issuances, the conventional bond outstanding amounted RM130.23 billion while the corporate Sukuk was recorded higher at RM459.98 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.