Capital Market Review & Outlook

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.

The global economy entered into a recovery phase in 2021, supported by a rebound in global
manufacturing and trade activities. However, the
recovery was uneven across countries given the
disparity in access to vaccines and policy support.

The Malaysian economy remained on a recovery
path in 2021. However, a deterioration in the domestic COVID-19 situation in mid-2021 delayed a broad-based recovery in economic activities.

The global economy is projected to continue its recovery in 2022. This outlook, however, is subject to significant uncertainties and remains uneven across economies.

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