Malaysia Bond and Sukuk: Quarterly Report 2Q2025

GOVERNMENT BOND AUCTION
Overview
 

Government bond auction for 2Q25 garnered an average BTC of 2.893x, surged from the previous quarter (1Q25: 2.886x). Reopening of MGII 7/40 marked the highest BTC at 3.362x. The new and reopening issuances of MGS/GII amounted to RM37 billion in Q2 2025, reflecting a decline of 22.97% compared to the previous quarter (Q1 2025: RM45.50 billion). While outstanding amount of MGS/GII stood at RM1.264 trillion, grew by 2.27% in 2Q 2025 (1Q25: RM1.236 trillion).

In the upcoming 3Q25, there will be one (1) new issuance and four (4) reopening of MGS. On the other hand, there will be one (1) new issuance and five (5) reopening of GII, totalling to two (2) new issuances and nine (9) reopening.

 

FOREIGN HOLDINGS OF MGS AND GII
Overview 

The foreign net flow to MGS and GII in 2Q25 amounted to RM9.73 billion, RM14.32 billion and –RM5.30 billion in April, May and June respectively, with foreign investors turned net buyer. As of June 2025, the total foreign holdings of MGS and GII stood at RM277.10 billion (March 2025: RM258.35 billion), 7.30% higher from the previous quarter.

RM46.62 billion corporate bonds and sukuk were issued in 2Q25 (1Q25: RM47.61 billion), 2.07% lower than the previous quarter. The AA2/AA/P1/M1-rated bonds and sukuk recorded the biggest issuance at RM15.38 billion issuances, followed by government guaranteed bonds at RM8.45 billion issuances. For 2Q25, the largest corporate issuances were issued by LEMBAGA PEMBIAYAAN PERUMAHAN SEKTOR AWAM, namely LPPSA IMTN 4.120% 08.04.2050 - Tranche No. 13 worth RM1.33 billion.

RATING OUTLOOK
 

There was zero (0) default and downgrade recorded in 2Q25. However, there were three (3) upgrades bonds/sukuk in the quarter. ⬆️ Upgrade Exsim Capital Resources Berhad Grand Sepadu (NK) Sdn Bhd Perbadanan Kemajuan Negeri Selangor

 

Source: MARC, RAM and BIX Malaysia

BOND STATISTICS
Overview 

Outstanding Amount by Bond Classes
 

As of June 2025, the outstanding amount of Government conventional bond and Government Sukuk stood at RM661.11 billion and RM610.30 billion, respectively. The conventional quasi-govt outstanding amount stood at RM18.30 billion, much smaller compared to its Shariah-compliant counterpart of RM330.29 billion. For corporate issuances, the conventional bond outstanding amounted RM120.31 billion while the corporate Sukuk was recorded higher at RM436.86 billion.

Disclaimer

This report has been prepared and issued by Bond and Sukuk Information Platform Sdn Bhd (“the Company”). The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs and should seek appropriate personalized financial advice from a qualified professional to suit individual circumstances and risk profile.

 The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, the Company does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.