KUALA LUMPUR (Feb 20): Foreign investor participation in the Malaysian bond market continued to grow for the fourth straight month in January 2026, with net foreign inflows reaching RM951.9 million, said RAM Rating Services Bhd (RAM Ratings). In a statement, the rating agency said the net inflows were driven primarily by continued demand for Malaysian Government Securities (MGS) and Government Investment Issues, which saw inflows of RM2.1 billion. “This was partly offset by outflows from Malaysian Treasury Bills and Malaysian Islamic Treasury Bills and corporate bonds, amounting to RM480.0 million and RM709.3 million respectively,” it said. In contrast, it said, the 10‑year MGS yield declined 1.4 basis points m‑o‑m to 3.52%, supported by resilient domestic demand and stable policy expectations. “The resulting wider yield differential of 74.4 basis points (end-December 2025: 65 basis points) likely reduced the attractiveness of Malaysian bonds to foreign investors,” it said.

Source: The Edge Markets February 20, 2026 09:42 UTC