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Monthly Fixed Income Report: August 2025
Sep 03, 2025
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MONTHLY FIXED INCOME REPORT : AUGUST 2025
Ringgit Bond and Sukuk Market Surpasses RM2.223 trillion in August 2025
The Malaysian ringgit bond and sukuk market extended its positive trajectory in August, registering a steady month-on-month (MoM) increase of 0.81%. The total outstanding volume climbed to RM2.223 trillion, up from RM2.205 trillion in July, cementing a consistent upward trend.
Market composition remained stable, with government issuances continuing to dominate at 58.44% of the total. The quasi-government and corporate segments held their ground with shares of 16.33% and 25.23%, respectively.
On a year-to-date (YTD) basis, the market has expanded by RM123 billion, representing a solid 5.00% growth since December 2024. This sustained performance underscores the market's resilience and robust investor confidence in Malaysia's fixed-income securities.
The Malaysian debt capital market experienced a period of dynamic activity in August 2025, as a boom in corporate fund raising led a broad market advance. Overall issuance of ringgit bonds and sukuk expanded by 28.4% month-on-month to reach RM26.13 billion.
A key highlight was the stellar performance of the corporate segment, where issuance skyrocketed 63.65% to RM24.63 billion. Analysts point to heightened activity in the AA2/AA/P1/M-1 rated category as the primary catalyst, with issuance in this tier surging to RM10.70 billion from RM4.09 billion the previous month. Furthermore, the high-end AAA/AA+ rated segment returned to the market with RM0.50 billion in new issuances after a complete absence in July.
This corporate fervour offset a notable slowdown in government issuance, which fell to RM0.50 billion. In a contrasting move, the central bank, Bank Negara Malaysia, markedly increased its own issuance activity by 233.33% to RM1.00 billion.
Malaysian benchmark yields presented a divergent picture in August, with sovereign tenors moving in opposite directions while corporate instruments trended lower.
Government bonds saw a split performance. Yields on Malaysian Government Securities (MGS) fell by 5 basis points for the 3-year tenor to 3.00% but rose by 2 basis points for the 10-year tenor to 3.39%. Similarly, Government Investment Issues (GII) saw its 3-year yield drop 8 basis points to 3.02%, while the 10-year yield held steady at 3.41%.
In contrast, the corporate debt market experienced a uniform downward shift. Yields on AAA-rated 3-year bonds and sukuk declined by 8 basis points to 3.46%. The 10-year corporate yields also fell, decreasing by 5 basis points to settle at 3.65%.
END OF REPORT
2nd September 2025
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, Bond and Sukuk Information Platform Sdn Bhd (“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.
(201701039928) (1254101-K)
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