MALAYSIA’S CORPORATE BOND ISSUANCE SEEN AT RM130-140 BLN IN 2026 – RAM RATINGS

KUALA LUMPUR, Jan 20 (Bernama) -- Malaysia’s corporate bond issuance is projected to reach between RM130 billion and RM140 billion in 2026, remaining above the historical average of RM122 billion, according to RAM Ratings.

The forecast comes after a record year in 2025, when gross corporate bond issuance surged to RM174.4 billion from RM124.2 billion in 2024, driven largely by the financial and property sectors.

The credit rating agency said in a statement today 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 RM168.5 billion in 2025 from RM176.7 billion a year earlier, but is projected to rise to between RM175.0 billion and RM185.0 billion 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 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 United States Federal Reserve (Fed) monetary policy adjustments will continue to drive global fund flows. Given increasing signs of economic weakness in the US, we expect the Fed to cumulatively reduce rates by at least 50 basis points by year-end,” it said. 

RAM Ratings added that with the overnight policy rate expected to remain unchanged at 2.75 per cent this year, the Fed rate cuts would further enhance the attractiveness of Malaysian bonds.

-- BERNAMA