Mulia Venture

KUALA LUMPUR: Malaysia has a strong potential to emerge as a global physical gold trading hub, supported by a business-friendly policy environment, an integrated industry ecosystem and the upcoming Malaysia Gold Industry Principles (MGIP).

Malaysia Gold Association (MGA) president Louis Ng said Malaysia’s strengths include coherent government policies, driving the healthy growth of the gold industry.

“Malaysia has strong potential to become a global physical gold trading hub, because our government is always setting the right policies for the healthy growth of the precious metals industry, especially gold,” he said during a press conference at the Malaysia Gold Conference here today.

Ng said the domestic precious metals industry has expanded rapidly, employing about a quarter of a million people across the value chain, from trading and retail to manufacturing and related services.

He said the MGIP, which is expected to be officially published in the third quarter (Q3) of this year, will be instrumental in strengthening governance, transparency and confidence in the domestic gold market, particularly by addressing quality standards and responsible business conduct among traders and retailers.

“With the MGIP, one of the modules we are going to cover is how to control the quality of members.

“Eventually, all the retail shops will carry a symbol or logo to show that they are responsible gold shops,” he said.

Ng said that the initiative, while voluntary, would help shape a more trustworthy and standardised gold trading ecosystem.

MGIP will serve as Malaysia’s self-regulatory foundation for the precious metals industry, covering responsible sourcing, ethical conduct, consumer protection and alignment with global compliance expectations.

He added that the principles were developed through collaboration with key stakeholders – including frameworks set by the World Gold Council – to enhance confidence across the entire ecosystem, while reinforcing Malaysia’s position as a well-governed and globally aligned precious metals hub.

KUALA LUMPUR: Malaysia’s central bank said strong growth and ongoing reforms would provide support for the ringgit, ruling out using the currency to support exports, which it said are determined by global demand.

“The ringgit has never been an instrument for export competitiveness” Bank Negara Malaysia said in a written response to questions on Friday. While the central bank will continue to ensure “orderly conditions” in the foreign exhange market, “the ringgit is market-determined”.

The comments come as the currency has outperformed all Asian peers in 2026, rising 3%, after gaining around 10% last year. That is in stark contrast to the performance of neighboring Indonesia this month, where equities saw the worst rout since 1998 and the rupiah hit a record low versus the greenback.

Despite the ringgit’s gains, Malaysia has seen robust exports growth, with record shipments of manufactured goods in December. The latest export figures highlight Malaysia’s resilience in the face of 19% US tariffs that came into effect last year.

Global demand plays “the bigger role” in driving exports instead of the ringgit, Bank Negara said, noting that it continues to “observe a stable conversion” of exporters’ foreign currency proceeds into the ringgit.

Malaysia’s growth has also stood out relative to many of its peers. Gross domestic product in 2025 grew by 4.9%, above the government’s forecast of a 4% to 4.8% expansion, supported by robust services and manufacturing. In contrast, the Philippine’s full year GDP for last year slowed to 4.4%, below the official 5.5% to 6.5% target.

“Malaysia’s economy is expected to remain resilient,” Bank Negara said, citing domestic demand and investment activity, though there are external risks. “This, together with the ongoing structural reforms, will provide continued and enduring support for the ringgit.”

KUALA LUMPUR: Bursa Malaysia snapped its five-day winning streak to close lower on Wednesday, as investors took profit following a cumulative gain of 4.25 per cent over the past five sessions, said an analyst.

IPPFA Sdn Bhd director of investment strategy and country economist Sedek Jantan said given the magnitude and pace of the recent advance, some degree of profit realisation is both expected and healthy.

“Importantly, this correction appears temporary rather than structural.

“Trading activity was also notably active, with total volume exceeding 3.0 billion shares, underscoring continued market participation rather than a broad-based risk-off move,” he told Bernama.

Additionally, investors appeared inclined to lock in gains to mitigate the risk of any unexpected policy signals ahead of the US Federal Reserve’s policy decision later today.

Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng viewed today’s profit-taking as a healthy development, allowing the market to absorb recent gains and prepare for the next leg higher.

“Market sentiment remains resilient, with investors continuing to hold positions near recent highs, pointing to consolidation rather than a reversal.

“As long as the index holds above the 1,740-1,750 support zone and foreign participation remains supportive, the broader upward trend is expected to stay intact,” he said.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.76 points or 0.83 per cent to 1,756.49 from Tuesday’s close of 1,771.25.

The market bellwether opened 1.46 points lower at 1,769.79, marking the day’s high, and hit a low of 1,750.05 during the mid-afternoon session.

Market breadth was negative with losers trouncing gainers 876 to 384, while 525 counters were unchanged, 964 untraded and 94 suspended.

Turnover improved to 3.65 billion units worth RM4.41 billion from Tuesday’s 3.58 billion units worth RM4.46 billion.

Among the heavyweights, Maybank added four sen to RM11.80 and IHH Healthcare surged 31 sen to RM9.02, while Public Bank shed five sen to RM4.95, CIMB dropped 30 sen to RM8.65, and Tenaga Nasional slid four sen to RM14.08.

On the most active list, ACE Market debutant ISF Group soared 15 sen to 48 sen, Capital A and Tanco Holdings inched up one sen each to 58.5 sen and RM1.34, respectively, and Velesto Energy eased one sen to 30.5 sen.

Among the top gainers, Dutch Lady Milk Industries rose 78 sen to RM33.80, Kuala Lumpur Kepong put on 26 sen to RM20.08, Allianz Malaysia gained 24 sen to RM23.24, and Country View jumped 19 sen to RM3.15.

Top decliners included Nestle, which dropped RM2.10 to RM113.50, Malaysian Pacific Industries fell 72 sen to RM32.50, Fraser & Neave slipped 50 sen to RM35.50, and United Plantations declined 28 sen to RM30.50.

On the index board, the FBM Top 100 Index decreased 106.90 points to 12,657.18, the FBM Emas Index declined 112.31 points to 12,842.39, the FBM Mid 70 Index was 150.84 points lower at 17,563.23, the FBM Emas Shariah Index slipped 91.94 points to 12,396.27, and the FBM ACE Index sank 88.82 points to 4,746.76.

Sector-wise, the financial services index tumbled 205.98 points to 21,507.68, the industrial products and services index edged down 1.92 points to 178.01, and the energy index dropped 11.08 points to 757.43, while the plantation index increased 6.72 points to 8,444.78.

The Main Market volume fell to 2.04 billion units worth RM3.96 billion from Tuesday’s 2.22 billion units worth RM4.20 billion.

Warrants turnover advanced to 956.75 million units worth RM137.89 million from 919.73 million units worth RM112.26 million previously.

The ACE Market volume expanded to 653.13 million units worth RM309.05 million from 441.14 million units worth RM145.30 million yesterday.

Consumer products and services counters accounted for 320.73 million shares traded on the Main Market, industrial products and services (308.75 million), construction (160.78 million), technology (250.71 million), financial services (179.53 million), property (259.32 million), plantation (43.29 million), real estate investment trusts (27.79 million), closed-end fund (10,600), energy (185.81 million), healthcare (176.10 million), telecommunications and media (41.29 million), transportation and logistics (48.43 million), utilities (39.61 million), and business trusts (220,700).

KUALA LUMPUR: Malaysian assets jumped to their highest level in more than seven years, buoyed by rising confidence in the country’s role in the artificial intelligence (AI) supply chain and a strengthening economic outlook.

The ringgit appreciated as much as 1% to RM3.9678 per US dollar today, the strongest since May 2018.

The FTSE Bursa Malaysia KLCI Index (FBM KLCI) rose as much as 1.2%.

Local assets are rallying alongside other emerging markets amid a selloff in the dollar sparked by concerns over joint intervention.

Malaysia’s growth momentum is also expected to continue this year, supported by resilient domestic demand, likely strong tourist arrivals and a rapid expansion in the data-centre sector.

T Rowe Price is most constructive over the ringgit within the emerging-Asia FX space, given that it’s a “destination for data centres with ample energy resources and is doing well in terms of tourism,” said Leonard Kwan, a fixed-income fund manager in Hong Kong.

The ringgit is Asia’s top performing currency so far in January, following two years of outperformance in the region.

A strategist at Oversea-Chinese Banking Corp sees the ringgit potentially strengthening toward the RM3.9650 level, supported by gains in the yuan and yen, while Gama Asset Management SA expects the currency to rise to RM3.9 per dollar this quarter.

Tech exports, foreign direct investment and Bank Negara Malaysia likely keeping interest rates unchanged this year would help the ringgit outperform Southeast Asian peers again in 2026, Goldman Sachs strategists including Danny Suwanapruti wrote in a note on Saturday.

The central bank maintained its policy rate last week.

The return of foreign investors is also giving equities a boost.

Global funds bought US$256 million of local stocks on a net basis this month – the most among emerging regional peers – helping to lift the FBM KLCI gauge to the highest since 2018.

“Steady fiscal trajectory and stable economic growth have positioned the country as an attractive destination for foreign investment, particularly in infrastructure, financial services, and renewable energy,” said Tareck Horchani, head of prime brokerage dealing at Maybank Securities in Singapore.

“Banking stocks have been the main driver for the index amid bargain hunting,” Horchani said.

The Bursa Malaysia Finance Index advanced as much as 1.7% to a fresh record high.

This week’s main economic events include Singapore’s industrial production, China’s industrial profits, the Philippines’ trade data, Australia’s Q4/December CPI, the Philippines’ Q4 GDP, Australia’s Q4 PPI, Taiwan’s Q4 GDP, Thailand’s trade data and China’s manufacturing PMI.

KUALA LUMPUR: Bargain-hunting in heavyweight financial services counters lifted Bursa Malaysia’s benchmark index from earlier losses to an intraday high, a level not seen in more than six years, even as regional sentiment remained mixed.

IPPFA Sdn Bhd director of investment strategy and country economist Sedek Jantan said the FBM KLCI extended its rally for a fifth consecutive session, as investors continued deploying capital despite elevated geopolitical noise.

“The persistence of buying interest reflects confidence in Malaysia’s earnings and macroeconomic backdrop, reinforced by foreign investors recording four consecutive days of net inflows from Jan 9 to 14.

“This pattern indicates that Malaysia is increasingly being treated as a core allocation rather than a tactical trade,” he told Bernama.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 4.25 points, or 0.25%, to 1,715.16 from yesterday’s close of 1,710.91. The index surpassed its previous peak of 1,713.45 recorded on Feb 27, 2019.

The market barometer opened 0.56 of-a-point lower at 1,710.35 and slipped to an intraday low of 1,701.83 in early trade before edging higher throughout the day towards the close.

Market breadth was negative, with decliners leading gainers 583 to 503, while 562 counters were unchanged, 990 untraded, and 21 suspended.

Turnover climbed to 3.25 billion units worth RM3.32 billion from yesterday’s 3.11 billion units worth RM3.19 billion.

Among the heavyweights, Maybank rose six sen to RM11.10, Public Bank put on eight sen to RM4.75, CIMB and Tenaga Nasional advanced 10 sen each to RM8.45 and RM13.92, respectively, while IHH was two sen lower at RM8.43.

On the most active list, VS Industry and Zetrix AI inched down 0.5 sen to 48 sen and 82.5 sen, respectively, Capital A lost 1.5 sen to 53 sen, and Northeast Group tumbled 11.5 sen to 59.5 sen, while Tanco bagged one sen to RM1.24.

Among the top gainers, Malaysian Pacific Industries climbed 90 sen to RM33.70, Hong Leong Bank rose 52 sen to RM24, Westports jumped 48 sen to RM6.12, Hong Leong Financial firmed 40 sen to RM20.82, and Mi Technovation added 19 sen to RM3.39.

For the top decliners, Nestle dropped RM2.50 to RM116, United Plantations decreased 52 sen to RM32.98, Fraser & Neave dipped 36 sen to RM36, Petronas Dagangan slid 30 sen to RM20.70, and Batu Kawan trimmed 26 sen to RM20.02.

On the index board, the FBM Emas Index increased 30.17 points to 12,656.64, the FBM Top 100 Index rose 36.27 points to 12,450.02, while the FBM Emas Shariah Index fell 20.52 points to 12,327.06.

The FBM Mid 70 Index garnered 76.03 points to 17,685.55 but the FBM ACE Index slumped 19.99 points to 4,965.96.

Sector-wise, the financial services index jumped 220.18 points to 20,704.28, the energy index shed 3.19 points to 786.43, the industrial products and services index eased 0.10 of-a-point to 174.73, and the plantation index sank 79.67 points to 8,449.03.

The Main Market volume was marginally lower at 1.71 billion units worth RM2.98 billion from yesterday’s 1.76 billion units worth RM2.92 billion.

Warrants turnover expanded to 1.12 billion units worth RM168.64 million from 846.9 million units worth RM114.84 million previously.

The ACE Market volume dwindled to 411.93 million units worth RM168.62 million from 501.47 million units worth RM156.13 million yesterday.

Consumer products and services counters accounted for 275.54 million shares traded on the Main Market, industrial products and services (301.12 million), construction (155.19 million), technology (293.79 million), financial services (141.59 million), property (190.43 million), plantation (41.48 million), real estate investment trusts (19.95 million), closed-end funds (82,000), energy (93.18 million), healthcare (99.27 million), telecommunications and media (26.41 million), transportation and logistics (41.42 million), utilities (32.60 million), and business trusts (93,900).