The foreign holdings of total local debt decreased by RM19.9 billion – the sharpest decline since 2011, to RM221.0 billion (19.2% of total loc

Dear Readers, Highlights of the report as follow:-

·         The foreign holdings of total local debt decreased by RM19.9 billion – the sharpest decline since 2011, to RM221.0 billion (19.2% of total local debt outstanding). The sharp drop was due to global bond sell-off following Trump’s victory as the 45th US President, added with the depreciation of Ringgit Malaysia against US dollar and surge in Malaysia credit risk premium. ·         Percentage of foreign shareholding of MGS plunged from its record high of 51.9% to a 9-month low of 48.4% in November. Meanwhile, foreign shareholdings of MGII also dropped from its record high of 12.6% in October to a 5-month low of 9.9%. Room for selling pressure remains in the near term, underpinned by external volatility. In particular focus will be the issues related to global politics, monetary divergence, and below potential global growth that will continue to create volatility in the global financial market.