FOREIGN holdings of Malaysian bonds increased further to RM288.1 billion in August 2024, compared to RM279.1 billion in July 2024.

The total foreign inflow into Malaysia’s debt market surged to RM17.6 billion in the first eight months of 2024 as the monthly increase of RM9.0 billion in August alone exceeded the cumulative rise of RM8.7 billion in the previous eight months, according to MIDF Research’s monthly fixed income review.

It noted that the monthly increment in foreign holdings in August was also the largest since July 2023.

With foreign holdings of public debt securities and sukuk rising to RM273.7 billion in August (Jul-24: RM265.4b), the report said the ratio to the total outstanding government bonds increased to 22.6%, back to the same level in December 2023 but remained below the pre-pandemic level (2019 average: 23.1%).

On the other hand, it noted the share of government bonds in the total foreign holdings dropped slightly to 95.0% (July 2024: 95.1%) as foreign holdings of Malaysian corporate bonds rose further by 5.1% mom to RM14.4 billion (July 2024: RM13.7 billion). – TMR