PHILLIP RESEARCH 2025 MALAYSIA STRATEGY

Plenty of opportunities.

We remain upbeat on Malaysia’s market in 2025, driven by sustained FDI, a stronger Ringgit, robust domestic liquidity, positive economic trend, corporate earnings growth, and the realization of MNC investment commitments 

Risks to the KLCI include potential foreign inflow slowdown due to tariffs and a stronger US dollar under Trump. Small-mid-cap stocks offer a better risk-reward, bolstered by strong thematic growth drivers 

Focus on corporates with thematic-driven earnings Consensus projects KLCI EPS to grow 8% YoY in 2025E, following a 12% YoY growth in 2024E. Banks, Construction, Technology and Gloves are expected to be key earnings growth drivers within our coverage universe. Several themes are likely to drive stronger market performance in 2025, including 1) sustained FDI growth, 2) acceleration of infrastructure spending, 3) rapid AI adoption, 4) rising focus on local green energy, 5) expanding DCs infrastructure, and 6) glove sector recovery on the back of China tariffs.

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PHILLIP RESEARCH 2025 MALAYSIA STRATEGY

Plenty of opportunities.

We remain upbeat on Malaysia’s market in 2025, driven by sustained FDI, a stronger Ringgit, robust domestic liquidity, positive economic trend, corporate earnings growth, and the realization of MNC investment commitments 

Risks to the KLCI include potential foreign inflow slowdown due to tariffs and a stronger US dollar under Trump. Small-mid-cap stocks offer a better risk-reward, bolstered by strong thematic growth drivers 

Focus on corporates with thematic-driven earnings Consensus projects KLCI EPS to grow 8% YoY in 2025E, following a 12% YoY growth in 2024E. Banks, Construction, Technology and Gloves are expected to be key earnings growth drivers within our coverage universe. Several themes are likely to drive stronger market performance in 2025, including 1) sustained FDI growth, 2) acceleration of infrastructure spending, 3) rapid AI adoption, 4) rising focus on local green energy, 5) expanding DCs infrastructure, and 6) glove sector recovery on the back of China tariffs.

 $KLSE-AGX 
 $KLSE-DAYANG 
 $KLSE-HEGROUP

$DAYANG / 5141 (DAYANG ENTERPRISE HOLDINGS BERHAD)