The global economy entered into a recovery phase in 2021, but with widening unevenness across countries and the continued challenge of COVID-19. Domestically, the Malaysian economy remained resilient and continued to recover from the year before, although at a slower pace than initially anticipated.

Against this economic environment, alongside intermittent global financial market volatility, the Malaysian capital market was adversely affected, with domestic equity and bond markets registering subdued performances for the year. Nevertheless, the domestic capital market remained orderly, and importantly, continued to play its critical roles in financing economic activity and intermediating savings with notable improvement in fundraising activities across all market segments.

Going forward, the Malaysian economy is projected to remain on a recovery path in 2022, in tandem with the ongoing recovery in global demand. Although the domestic capital market will continue to be influenced by key global developments, it is expected to remain resilient and orderly, underpinned by Malaysia’s strong macroeconomic fundamentals, ample domestic liquidity, and supportive policy environment.