In the first seven months of 2025, private sector fundraising rose 8.2% to RM75.9 billion, with gross funds raised in the equity market surging by 29% to RM4.3 billion, according to its economic outlook released today.
In contrast, public sector fundraising contracted by 7.7% to RM102.4 billion, reflecting the government’s fiscal reform commitments.
Overall, gross funds raised in the capital market moderated 1.5% to RM178.4 billion for the period.
“Despite global uncertainties, the market demonstrated resilience as firms actively tapped both the equity and bond markets to finance business growth, infrastructure projects and strategic investments,” said the report.
Corporate bonds continued to serve as a flexible financing avenue beyond traditional bank loans. In the first seven months, corporate bond issuances rose 7.2% to RM71.7 billion.
Financing activities were led by the finance, insurance, real estate and business services sector, which accounted for 77.3% of new issuances.
Proceeds were primarily channelled towards working capital, new ventures, refinancing and other corporate requirements.
Healthy equity market
The equity market remained robust, supported by initiatives such as the New Industrial Master Plan 2030 and National Energy Transition Roadmap alongside private investments in data centres and developments within the Johor-Singapore Special Economic Zone (JS-SEZ).
Fundraising via initial public offerings (IPOs) generated RM4.3 billion from 38 new listings on Bursa Malaysia in the first seven months of 2025.
The strong performance was bolstered by Bursa’s outreach programmes and recent regulatory enhancements.
“In particular, the pledge to expedite IPO approvals within three months has successfully attracted quality companies to the market,” the ministry said.
It also noted the FBM KLCI has navigated a challenging global environment shaped by US tariffs, geopolitical tensions and regional monetary adjustments since the start of the year.
The index first came under pressure in early April following the US’ broad tariffs, closing significantly lower at 1,400.59 points on April 9. The benchmark index has since staged a strong rebound, closing at 1,627.50 points on Oct 8.
In 2026, Malaysia’s equity market is well-positioned to benefit from on-going structural reforms, robust consumer spending, stable political landscape, and continuing strengthening of the ringgit, the report said.