CGS International Securities Malaysia Sdn. Bhd. (“CGS MY”), a leading integrated financial services provider, has shared its preliminary market outlook ahead of the release of its annual Navigator Report 2026, providing insights into Malaysia’s economic and capital market prospects for the coming year. The report preview comes at a pivotal time, following Malaysia’s Chairmanship of ASEAN, the upcoming Budget 2026, and the rollout of the 13th Malaysia Plan (13MP). CGS MY highlighted that ASEAN continues to be a global beacon of stability, with Malaysia playing a central role in the region due to its strategic economic and political positioning. Despite global uncertainties and geopolitical tensions, Malaysia’s domestic markets have remained resilient, with trade volumes and values on Bursa Malaysia largely supported by domestic participation. Following a dip in April 2025, the FBM KLCI and FBM Emas indices rebounded to 1,619.63 and 11,818.32 points respectively, signaling steady investor confidence.
Khairi Shahrin Arief Baki, Chief Executive Officer-designate of CGS MY, expressed a constructive outlook for 2026, noting that Malaysia’s strategic location, strong domestic focus, and policy support for high-growth, high-value sectors position it as a safe haven amid ongoing US-China and China-Japan trade tensions. With seven more IPO listings in the pipeline for 2025, CGS MY expects Malaysia to maintain its leadership within ASEAN for capital market activity. The recent consultation paper by the Securities Commission Malaysia proposing updates to Main and ACE Market listing requirements is anticipated to further enhance Malaysia’s appeal as a destination for IPOs.
On the external front, geopolitical trade tensions are easing, with the US revising reciprocal tariffs downward, benefiting Malaysian exports. Over 60% of Malaysia’s exports to the US are projected to be exempt from tariffs, among the highest in ASEAN. Coupled with the US Federal Reserve resuming its rate cut cycle and Bank Negara Malaysia maintaining the Overnight Policy Rate (OPR), a narrowing of interest rate differentials is expected to positively impact the ringgit and the Malaysian stock market. CGS MY underscored that Malaysia’s investment growth is anchored in strong fundamentals, including political stability, fiscal discipline, and sound governance. Through its capital market leadership, the company aims to support these strengths by fostering collaborations across ASEAN and China while promoting sustainability-focused initiatives.
Domestically, the MADANI government’s economic reforms, including rationalization of subsidies and broadening of the public revenue base, have helped narrow the fiscal deficit from 5.5% of GDP in 2022 to a projected 3.5% in 2026. Strategic initiatives under the MADANI Economy, such as the National Energy Transition Roadmap (NETR) and the New Industrial Master Plan (NIMP 2030), have driven investments to record levels, with approved investments hitting RM379 billion in 2024 and maintaining robust growth at RM285 billion for the first nine months of 2025. Looking ahead, the Visit Malaysia Year 2026 (VMY2026) campaign targets 31 million tourist arrivals and RM147.1 billion in receipts, creating potential investment opportunities in tourism-related sectors including aviation, retail, healthcare, and REITs. With a combination of strong domestic fundamentals, supportive policies, and strategic international positioning, CGS MY believes Malaysia’s markets are well-poised to move from recovery into a sustained growth phase in 2026, offering attractive prospects for investors and capital market participants alike.