Malaysia’s stock market faces bleak outlook as foreign outflows hammer sentiment
Global trade tensions, delayed IPOs and investor unease over Trump’s second term have soured the mood and upended early-year optimism
[KUALA LUMPUR] Mounting uncertainty over United States’ trade policy – particularly the risk of sweeping new tariffs under a second Trump administration – is shaking investor confidence in Malaysia, triggering sharp equity outflows and weighing on the country’s economic outlook.
Foreign investors pulled more than RM10 billion (S$3 billion) from the market over the three-month period, marking the biggest quarterly outflow since the landmark 2018 general election.
The FBM KLCI tumbled 7.3 per cent over the period, making it one of the worst performers in South-east Asia and effectively wiping out the gains of last year’s rally.
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