Malaysia Bond and Sukuk: Quarterly Report 4Q2024

GOVERNMENT BOND AUCTION
Overview
 

The government bond auction for 4Q24 garnered an average BTC of 1.991x, dropped from the previous quarter (3Q24: 2.318x). A reopening of MGS 4/39 received the highest BTC at 2.672x. The new/reopening issuances for MGS/GII stood at RM 33.50 billion (3Q24: RM 42.00 billion).  Throughout 2024, the outstanding amount of MGS/GII stood at RM1,204.64 billion (3Q24: RM1,193.64 billion).  Government sukuk issuances in Malaysia improved in the second half of the year after recording a less active trend in the first half.

For the upcoming 1Q25, there will be zero (0) new issue and five (5) reopening of MGS. For GII there will be three (3) reopening and two (2) new issues, totalling to eight (8) reopening and two (2) new issues.

 

FOREIGN HOLDINGS OF MGS AND GII
Overview 

The foreign net flow to MGS and GII in 4Q24 amounted to – RM1.05billion, – RM1.78billion and – RM1.96 billion respectively in October, November and December as foreign investors turned net seller. As of December 2024, the total foreign holdings of MGS and GII stood at RM254.92 billion (September 2024: RM269.22 billion), 5.31% decrease from the previous quarter.

RM48.57 billion corporate bonds and sukuk were issued in 4Q24 (3Q24: RM49.57 billion), 2.02% decrease from the previous quarter. The AA2/AA/P1/M1-rated bonds and sukuk were the most issued at RM14.38 billion issuances, followed by non-rated bonds at RM13.99 billion issuances. For 4Q24, the largest corporate issuances were issued by PRASARANA MALAYSIA BERHAD, PRASARANA IMTN 4.090% 07.10.2044 (Series 20) of RM1.10 billion.

RATING OUTLOOK
 

There was zero (0) default and one (1) downgraded recorded in 4Q24. However, there are eight (8) upgraded bonds/sukuk in this quarter. ⬆️ Upgrade Press Metal Aluminium Holdings Berhad Edra Power Holdings Sdn Bhd Hong Leong Assurance Berhad Bank of China (Malaysia) Berhad UEM Edgenta Berhad Samalaju Industrial Port Sdn Bhd Bintulu Port Holdings Berhad Point Zone (M) Sdn Bhd ⬇️ Downgrade Tan Chong Motor Holdings Berhad

 

Source: MARC, RAM and BIX Malaysia

BOND STATISTICS
Overview 

Outstanding Amount by Bond Classes
 

As of December 2024, the outstanding amount of the Government conventional bond and the Government Islamic Bond (Sukuk) stood at RM638.83 billion and RM580.80 billion respectively. The conventional Quasi-govt outstanding amount stood at RM20.65 billion, much smaller compared to its Islamic counterpart that stood at RM320.15 billion. For corporate issuances, the conventional bond outstanding amounted RM114.22 billion while the corporate Sukuk was recorded higher at RM423.38 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.