What is the historical peak for foreign holdings in Malaysian bonds?

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Historical Peak for Foreign Holdings in Malaysian Bonds Reached 36 Per Cent

As of April 2024, foreign holdings of Malaysian government bonds stood at 21 per cent. The highest recorded level for foreign investment in these bonds was 36 per cent, a figure that has been reached previously. Since 2005, the proportion of Malaysian government bonds held by foreign entities has fluctuated, ranging from a low of 4 per cent to the aforementioned peak of 36 per cent.
Previous Range of Foreign Holdings

The period between 2005 and April 2024 shows a dynamic pattern in foreign investment in Malaysian government debt. During this time, foreign ownership of these bonds has varied significantly, with the lowest point recorded at 4 per cent. This historical data indicates that current foreign holdings, at 21 per cent, are situated near the long-term average observed over this 19-year span.
Current Foreign Holdings and Investor Interest

Despite global economic shifts that have influenced currency values, foreign investors have maintained a consistent interest in Malaysian government bonds. The current holding level of 21 per cent suggests a resilience in investor sentiment. While this percentage is below the average observed over the past decade, there is no indication of capital outflows from Malaysia exceeding historical norms.
Recent Capital Market Activity

In the year leading up to April 2024, Malaysia's capital markets experienced net foreign outflows. Specifically, the local bond market saw outflows amounting to RM4.0 billion, while the domestic equity market recorded outflows of RM2.1 billion. These figures underscore the importance of factors related to market microstructure in sustaining and increasing portfolio investments.

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What is the historical peak for foreign holdings in Malaysian bonds?

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