Record year for corporate bonds in 2025, projected to stay robust in 2026

Published on 21 Jan 2026.

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Malaysian corporate bonds and sukuk issuance hit a record high last year, with gross issuance totalling RM174.4 bil significantly exceeding RM124.2 bil in 2024. The robust market was spurred by favourable yields and tight spreads and ample liquidity.

The financial sector led the market, contributing 33% or RM57.6 bil of total issuance, followed by the real estate sector with RM27.0 bil. New programmes (instead of refinancing) featured significantly in 2025, with 96 coming to market. Of notable interest was the debut of 48 new programmes by first-time issuers and issuances from sectors that have not tapped the market prior. Successful transactions rated by RAM last year included Malaysia’s first pawn (gold) loan securitisation, medical services and takaful sectors.

As at end of 2025, total outstanding corporate bonds reached RM923.4 bil, up from RM858.0 bil in 2024. Given still-accommodative interest rates and the roll-out of national infrastructure and utility initiatives, we expect corporate bond financing to remain strong in 2026, albeit at a more moderate pace than in 2025. Gross issuance is projected to reach RM130 bil-RM140 bil, above the 8-year historical average of circa RM120 bil.

Meanwhile, gross issuance of MGS and GII eased to RM168.5 bil in 2025 from RM176.7 bil, with the MGS and GII outstanding reaching RM1,289.7 bil from RM1,204.6 bil in 2024. For 2026, we project the segment’s gross issuance to rise to RM175.0 bil-RM185.0 bil due to larger refinancing of maturing debts. Net supply in 2026, however, will be lower because of a smaller government deficit. We expect foreign investor demand for MGS to stay healthy in 2026, backed by resilient domestic economic conditions and global monetary easing prospects, in particular, potential further Fed rate cuts through 2026, which should enhance the yield differential in favour of ringgit bonds.

 

Analytical contact Woon Khai Jhek, CFA  (603) 2708 8286 khaijhek@ram.com.my		Media contact Sakinah Arifin (603) 2708 8212 sakinah@ram.com.my
Nur Rasyidah Abd Karim (603) 2708 8208 rasyidah@ram.com.my

 

About RAM Rating Services Berhad (RAM Ratings)

Established in 1990, RAM Ratings is a leading credit rating agency registered under the Securities Commission’s Guidelines on Credit Rating Agencies. In addition to the provision of credit ratings for corporate bonds and sukuk and their issuers, RAM Ratings also provides research and publications on Islamic finance, fixed income and macro-economic and industry analysis as well as data analytics relating to credit risk, counterparty assessments and other related domains. 

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