Malaysia Bond and Sukuk: Quarterly Report 4Q2025

GOVERNMENT BOND AUCTION
Overview
 

Government bond auction for 4Q25 garnered an average BTC of 2.090x, decreased from the previous quarter (3Q25: 2.289x). Reopening of MGII 8/30 marked the highest BTC at 2.814x. The new and reopening issuances of MGS/GII amounted to RM32.5 billion in Q4 2025, reflecting decrease of 36.27% compared to the previous quarter (Q3 2025: RM51.0 billion). The outstanding amount of MGS/GII stood at RM1.290 trillion and grew by 0.39% in 4Q 2025 (3Q25: RM1.285 trillion).

In the upcoming 4Q25, there will be four (4) new issuance and two (2) reopening of MGS. On the other hand, there will be zero (0) new issuance and three (3) reopening of GII, totalling to four (4) new issuances and five  (5) reopening.

 

FOREIGN HOLDINGS OF MGS AND GII
Overview 

The foreign net flow to MGS and GII in 4Q25 amounted to RM3.04 billion, RM3.97 billion and RM2.25 billion in October, November and December respectively, with foreign investors turned net buyer. As of December 2025, the total foreign holdings of MGS and GII stood at RM277.95 billion (September 2025: RM268.69 billion), 3.44% higher from the previous quarter.

RM76.10 billion corporate bonds and sukuk were issued in 4Q25 (3Q25: RM77.24 billion), 1.50% lower than the previous quarter. The non-rated bonds and sukuk recorded the biggest issuance at RM20.38 billion issuances, followed by AA2/AA/P1/M1-rated bonds at RM19.83 billion issuances. For 4Q25, the largest corporate issuances were issued by PNB MERDEKA VENTURES SDN. BERHAD, namely PNBMV IMTN 3.640% 06.11.2030 worth RM2.25 billion.

RATING OUTLOOK
 

There were zero (0) default and downgrade recorded in 4Q25. However, there were three (3) upgrades bonds/sukuk in the quarter.  ⬆️ Upgrade TIME dotCom Berhad  Ideal Water Resources Sdn Bhd MBSB Bank Berhad

 

Source: MARC, RAM and BIX Malaysia

BOND STATISTICS
Overview 

Outstanding Amount by Bond Classes
 

As of December 2025, the outstanding amount of Government conventional bond and Government Sukuk stood at RM674.36 billion and RM625.30 billion, respectively. The conventional quasi-govt outstanding amount stood at RM19.70 billion, much smaller compared to its Shariah-compliant counterpart of RM374.79 billion. For corporate issuances, the conventional bond outstanding amounted RM124.56 billion while the corporate Sukuk was recorded higher at RM437.23 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.