Malaysia Market Update – May 2025

Analysis, Halal Investment, Market Analyses, Market News |

Assalamu Alaykum,

Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in Malaysia for May. Let’s get started.

Stock market updates

May saw a pullback in Malaysia’s stock market, with all major indices recording losses after April’s recovery. The FTSE Bursa Malaysia KLCI declined by 2.21%, closing at RM1,508. The FTSE Bursa Malaysia Mid 70 Index slipped by 0.45% to end at RM16,201, while the FTSE Bursa Malaysia Top 100 Index fell by 1.74%, closing at RM11,061. The downturn reflected renewed market uncertainty and cautious investor sentiment amid lingering economic concerns.

  • Petroliam Nasional Bhd is reportedly exploring a potential sale of its Canadian unit, formerly Progress Energy Resources Corp, which could fetch between US$6 billion to US$7 billion, according to Bloomberg sources. The Malaysian state energy giant is working with a financial adviser and has begun gauging interest from potential buyers.
  • Spritzer Bhd reported a 27% year-on-year rise in net profit for 1QFY2025, reaching RM19.67 million, driven by strong domestic demand for its bottled water products. Revenue increased nearly 10% to RM148.28 million, up from RM134.99 million a year earlier. The company plans to maintain its focus on operational excellence, automation, and process improvements amid global uncertainties, while also exploring market expansion into Singapore.
  • JF Technology Bhd has completed the acquisition of an 80% stake in Singapore-based Q3 Probe Pte Ltd for RM6 million (US$1.36 million) through its subsidiary, JF International. The deal, finalized with Q3’s US parent Spire Manufacturing Inc., includes a performance-based earn-out structure worth up to RM1.2 million over three years if Q3 meets profit targets.
  • Bank Islam Malaysia Bhd reported a 3.2% year-on-year drop in 1QFY2025 net profit to RM126.27 million, mainly due to a sharp 89% increase in impairment provisions to RM79.78 million amid rising bad loans. Despite this, the bank maintained a strong gross impaired financing ratio of 1.08%, below the industry average of 1.42%.

Top gainer and top loser Halal stocks in the Malaysia

Economic updates

  • Malaysia’s manufacturing outlook remains subdued heading into the second half of 2025, as weak global demand, fading front-loaded orders, and soft business sentiment continue to dampen industrial output. The PMI rose marginally to 48.8 in May from 48.6 in April but remained in contraction for the 12th straight month.
  • Malaysia’s digital investment pipeline reached RM59.1 billion as of April 2025, with an expected IT load of over 300MW, according to Investment Minister Tengku Zafrul. From 2021 to 2024, the country approved RM113.8 billion in data center and cloud computing investments, spanning 23 major projects proposing nearly 1,900MW in IT capacity.
  • Malaysia-China trade reached RM161.98 billion (US$36.47 billion) in the first four months of 2025, cementing China as Malaysia’s largest trading partner for 16 consecutive years, according to Matrade. This growth is largely driven by Malaysia’s electrical and electronics (E&E) exports. The renewed momentum follows Chinese President Xi Jinping’s recent visit, which reinforced strategic cooperation in green development, digital economy, and regional infrastructure under initiatives like the Belt and Road Initiative.
  • Malaysia’s Employees Provident Fund (EPF) is preparing to sell a portfolio of 12 UK private hospitals valued at around £1.4 billion (US$1.9 billion or RM8.06 billion), Bloomberg reports. The hospitals, operated by Spire Healthcare Group plc, were acquired by an EPF-led consortium in 2013 for about £700 million. EPF has appointed Knight Frank as the broker to handle the sale.

Disclaimer: The content is for informational purposes only and does not constitute legal, investment or financial advice.
It is important to conduct your own research or consult with a financial or investment advisor. Past performance is not indicative of future results. All logos or brands are referenced for identification purposes only and do not constitute an endorsement of any kind. This information is accurate as of the date of publication and may not reflect recent changes. Access our comprehensive legal disclaimers at https://musaffa.com/disclaimer.