KUALA LUMPUR: Malaysia’s corporate bond issuance is projected to reach between RM130bil and RM140bil in 2026, remaining above the historical average of RM122bil, according to RAM Ratings.
The forecast comes after a record year in 2025, when gross corporate bond issuance surged to RM174.4bil from RM124.2bil in 2024, driven largely by the financial and property sectors.
The credit rating agency said in a statement yesterday that the 2026 outlook is backed by financial institutions’ capital-raising plans, ongoing refinancing activities due to favourable interest rates, infrastructure funding requirements, and positive market momentum from 2025.
“Gross issuance of Malaysian Government Securities (MGS) and Government Investment Issues (GII) eased to RM168.5bil in 2025 from RM176.7bil a year earlier, but is projected to rise to between RM175bil and RM185bil in 2026 due to higher refinancing needs for maturing debts.
“However, net supply in 2026 is expected to be lower, reflecting a smaller government deficit financing requirement,” said RAM Ratings.
The rating agency noted that foreign investor demand for Malaysian bonds is expected to remain firm in 2026, supported by resilient domestic economic conditions and expectations of global monetary easing.
“The timing and pace of the US Federal Reserve (Fed) monetary policy adjustments will continue to drive global fund flows.
“Given increasing signs of economic weakness in the United States, we expect the Fed to cumulatively reduce rates by at least 50 basis points by year-end,” the rating agency said.
RAM Ratings added that with the overnight policy rate expected to remain unchanged at 2.75% this year, the Fed rate cuts would further enhance the attractiveness of Malaysian bonds. — Bernama
