Malaysia’s Budget Eyed for Catalysts to Spur Rebound in Bonds
- 2025 budget Friday is expected to show lower budget deficit
- Bonds may yield positive returns in coming months: PineBridge
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Malaysia’s sovereign bonds and currency are poised to rebound on robust economic indicators and expectations for fiscal discipline in the upcoming budget, investors said.
Prime Minister Anwar Ibrahim’s spending plan, which is set to be released Friday, will likely show a lower budget deficit ratio of 3.9% from its 2024 target of 4.3%, and result in “slightly” reduced supply of bonds in next year, according to a note by Maybank.