Malaysia Bond and Sukuk: Quarterly Report 3Q2025

GOVERNMENT BOND AUCTION
Overview
 

Government bond auction for 3Q25 garnered an average BTC of 2.289x, decreased from the previous quarter (2Q25: 2.893x). Reopening of MGII 10/31 marked the highest BTC at 2.922x. The new and reopening issuances of MGS/GII amounted to RM51 billion in Q3 2025, reflecting an increase of 37.84% compared to the previous quarter (Q2 2025: RM37 billion). The outstanding amount of MGS/GII stood at RM1.285 trillion and grew by 1.66% in 3Q 2025 (2Q25: RM1.264 trillion).

In the upcoming 3Q25, there will be one (1) new issuance and four (4) reopening of MGS. On the other hand, there will be one (1) new issuance and five (5) reopening of GII, totalling to two (2) new issuances and nine (9) reopening.

 

FOREIGN HOLDINGS OF MGS AND GII
Overview 

The foreign net flow to MGS and GII in 3Q25 amounted to –RM5.27 billion, RM3.27 billion and –RM6.42 billion in July, August and September respectively, with foreign investors turned net sell. As of September 2025, the total foreign holdings of MGS and GII stood at RM268.69 billion (June 2025: RM277.10 billion), 3.04% lower from the previous quarter.

RM77.24 billion corporate bonds and sukuk were issued in 3Q25 (2Q25: RM46.62 billion), 65.68% higher than the previous quarter. The AA2/AA/P1/M1-rated bonds and sukuk recorded the biggest issuance at RM23.49 billion issuances, followed by non-rated bonds at RM14.77 billion issuances. For 3Q25, the largest corporate issuances were issued by MALAYAN BANKING BERHAD, namely MAYBANK SUBORDINATED SUKUK 3.920% 07.09.2040 worth RM3.00 billion.

RATING OUTLOOK
 

There was zero (0) default and downgrade recorded in 3Q25. However, there were two (2) upgrades bonds/sukuk in the quarter.  ⬆️ Upgrade MEX I Capital Berhad Alliance Bank and Alliance Islamic Bank Berhad

 

Source: MARC, RAM and BIX Malaysia

BOND STATISTICS
Overview 

Outstanding Amount by Bond Classes
 

As of September 2025, the outstanding amount of Government conventional bond and Government Sukuk stood at RM657.36 billion and RM635.80 billion, respectively. The conventional quasi-govt outstanding amount stood at RM20.34 billion, much smaller compared to its Shariah-compliant counterpart of RM347.72 billion. For corporate issuances, the conventional bond outstanding amounted RM122.55 billion while the corporate Sukuk was recorded higher at RM455.35 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.