Petaling Jaya: Malaysia has been designed to benefit from Asia’s growing appeal as global capital magnets, as international investors are rapidly away from the uncertainties of the US and Europe.
According to Rakuten Trade SDN BHD, while Malaysia can currently lag from its regional peers, it has a strong ability to ride a wave of liquidity across Asia.
This regional trend underlines a widespread recurrence of global investment flow, inspired by both macroeconomic instability in the West and renews investors’s confidence in Asia’s dynamic development possibilities.
Speaking at Rakten Trade’s Q4 Market Outlook briefing, Kenny Shane Pin, head of research, said, “Despite political rhetoric and tariff policies from the US, the speed is moving towards Asia, especially China and Hong Kong.”
“Global investors are starting to look else to keep their money. Currently, China and Hong Kong are where the foreign fund managers are focusing,” Yi said, adding the aggressive spontaneous policies of Beijing, adding 50 base point cuts and 10 base point cuts in debt prime rates, which are promoting ralirs.
The Hang Seng index has increased by 27.7% year-on-year, foreign observers have increased their approach more rapidly.
“Citigroup is the latest to guess that Hang Seng will touch 27,500 by the end of 2025. This is actually 180 ° turn,” Yi said.
He insisted that the basic principles of Asia are often recognized, pointing to the sector’s collective US $ 7.9 trillion (RM33 trillion) in foreign reserves compared to the US $ 3 trillion conducted by Western economies.
“If money attracts money, Asia is definitely ready to enjoy some enthusiasm moving forward.”
However, Malaysia remains an underperformer.
FBM KLCI is 4% year-to-year below the RM16.8 billion foreign equity outflow of RM16.8 billion in early September.
Nevertheless, Yi highlighted that the local market has been “supported very well by domestic institutions”, retail participation is also recovering after two years of outfits.
He said, “Despite the outflow, the foreign stake in Barsa Malaysia is stable at 19%,” he said, stating that short-term “day-trippers” were largely behind the recent exit.
At the same time, long -term investors continue their positions.
Rakuten Trade has revised its year’s end KLCI target from 1,630 points to 1,650 points, based on 16.5 times the price-to-Kamai (per) for 2025.
YEE also estimated that the ringtte would be strong between 4.00 and 4.15 against the US dollar, supported by the Federal Reserve Rate cut.
“Bhavna is slowly improving, and that’s why I decided to higher the goal of my year’s end,” Yi told reporters, saying that Asia remains a preferred destination for fundamental currencies and fund managers seeking positive GDP growth.
While Macro Picture is cautious, Rakuten, vice president of Equity Research Thong Pak Lang, said that many domestic areas stand outside.
He called for a 3-4% debt increase in 2025, citing concrete basic things and attractive dividends from Mebank and CIMB, and called over weight on banking.
RHB and Ambank also provide reverse capacity with stable yields.
Construction area is another bright place, more than RM180 billion more than public infrastructure projects, including Penang LRT, Saba Sarwak Link Road, Upgradation of Subang Airport and Johor-Singapur Special Economic Zone.
“Our top Pix Gumuda Bhad, Ijam Corporation Bhad, Gagasan Nadi Sargas Bhad, Inta Bina Group Bhad and Kimalun Corporation Bhad,” said Thong.
The consumer sector is also upgraded to overweight, helped by low production costs, a strong ringite and flexible expenses. Retail vendors such as 99 speedmart, MR DIY and Ecoshop are expected to benefit.
Utilities and renewables are playing a long -term development, with Tenga Nasil BHD, YTL Power and Solarwest Holdings BHD well deployed to catch the demand for Malaysia’s fast growing data center industry and the government’s target of 70% renewable capacity by 2050.
Conversely, the documents remain neutral between oversupply, planting with crude palm oil at RM4,300 per tonne, and oil and gas are pressurized by a low capex budget of RM40–50 billion of Petronas.
Equity analyst Li KaU highlighted five big-cap stock pics.
Among them, 99 Speed Mart Retail Holdings BHD was spotlighted in 2025 for aggressive expansion of 250 new outlets, while Ambank and RHB stood out for flexible debt hikes and a dividend yield of about 6%.
Construction giant Gamuda was appreciated for obtaining the RM2.14 billion Hypersscale data center project in Selangore, promoting its order book close to RM40 billion.
“The award may pave the way for more contracts in highly competitive data center space,” Lee said.
Telecom Malaysia was another pick, supported by submarine cable rollouts and fiber backhall projects, priced at RM2.4 billion.
Meanwhile, equity analyst Crystal Chin Sea Ying replaced the spotlight on small and middle-cap “gems” such as Gagasan Nadi Cargas, which has expanded its affordable housing pipeline in RM4 billion GDV, and 15,000 units of Inta Bina, which is recently protected in more than RM 1.1 billion projects.
Tech infrastructure providers are also seen as long -term winners.
The ITMAX system is expanding the smart parking system of BHD Selangore and the traffic management network of Johor, while Nexag contracted RM1.73 billion for the supply of Malaysia’s next-gene passport.
A major distributor of consumer technology and ICT services is expected to ride the data center boom and National Digitalization Push from Vstecs BHD.
Despite optimism, Yi warned that global uncertainties remain especially in the US.
He said, “National loan is now beyond the US $ 37 trillion, and the job market is getting weaker. These are big headache that no one is talking about,” he said.
Nevertheless, he believes that the future is from Asia.
“If you look at the climate of investment, Asia provides a more comfortable environment than elsewhere. Europe is struggling, and America is also struggling.
“Where else, but Asia?”
