The global economy experienced considerable challenges in 2022 shaped by the war in Ukraine, intensified global inflationary pressures, tightening global financial conditions, and an economic slowdown in China. Domestically, the Malaysian economy remained resilient and continued to recover following the reopening of the economy, underpinned by robust domestic demand. Against the backdrop of higher global financial market volatility, conditions in the domestic capital market remained orderly and it continued to play its critical role in financing economic activity and mobilising savings, with a notable improvement in fundraising activities in 2022. Going forward, the Malaysian economy is projected to continue to recover in 2023, although at a more moderate pace, given the increasingly challenging global economic environment. The domestic capital market will continue to be influenced by key global developments and is expected to stay resilient and orderly, given Malaysia’s firm macroeconomic fundamentals and supportive policy environment.