October 12, 2018
|Govt. Bond Yields||Latest Yield||Previous Day||Previous Week||YTD|
|2 Year||3.493||▼ 0.1||▼ 0.8||▲ 35.5|
|5 Year||3.775||▼ 0.6||▼ 1.4||▲ 21.5|
|10 Year||4.127||▲ 0.3||▲ 2.1||▲ 21.3|
* Government bond yield changes are expressed in basis points.
|Currencies||Latest Rate||Previous Day||Previous Week||YTD|
|MYR per USD||4.154||▲ 0.1||▼ 0.1||▼ 2.7|
|MYR per JPY||0.037||▲ 0.2||▼ 1.5||▼ 3.1|
* Exchange rate changes are expressed as a percentage change.
|Interest Rates||Latest Rate||Previous Day||Previous Week||YTD|
|1D KLIBOR||3.250||▲ 5.0||0.0||▲ 34.0|
|3M KLIBOR||3.690||0.0||0.0||▲ 25.0|
* Interest rate changes are expressed in basis point change.
|Policy Rates||Latest Rate
|Overnight Policy Rate||3.250||▲ 25.0||▲ 25.0|
* Policy rate changes are expressed in basis point change.
|Regional Rating Institutions|
|Non-Regional Rating Institutions|
ASEAN+3 Bond Market Guide is a comprehensive explanation of the region’s bond markets. It provides
various information such as the history, legal and regulatory framework, speciic characteristics of the
market, trading and transaction including settlement systems, and other relevant information. The Bond
Market Guide 2016 for Malaysia is an outcome of the strong support and kind contributions of ASEAN+3
Bond Market Forum members and experts, particularly from Malaysia. The report should be recognized as a
collective good to support bond market development among ASEAN+3 members.
|* Download previous issues PDF|
Yields of local currency (LCY) government bonds declined across all maturities between 1 June and 15 August. Short-term Treasury bills (maturities of 1 year or less) and bonds with tenors of between 5 years to 9 years saw modest declines, while bonds with maturities of between 2 years and 4 years and 10 years and above saw double-digit decreases in their yields. The general decline in yields during the review period can be attributed to Bank Negara Malaysia maintaining its policy rate after raising it by 25 bps in January as a preemptive move. The positive outlook on the Malaysian economy is also a driving force for local bond demand and the return of foreign funds to the local bond market in July also helped hold down yield increases.
Malaysia’s total LCY bonds outstanding expanded 2.2% quarter-on-quarter (q-o-q), reaching MYR1,369 billion (USD339 billion) at the end of the second quarter (Q2) of 2018, slower compared to the previous quarter’s growth. Total government outstanding bonds increased 2.5% q-o-q to MYR722 billion and corporate bonds posted growth of 1.9% q-o-q to MYR646 billion. Government and corporate bonds accounted for 52.8% and 47.2% of the total outstanding, respectively, in Q2 2018. Total sukuk (Islamic bonds) amounted to MYR817 billion, accounting for a larger share of Malaysia’s bond market at 59.7% in at the end of the quarter.
Malaysia scrapped the 6% goods and services tax (GST), effective 1 June, as a fulfillment of Prime Minister Mahathir Mohamad’s campaign promise after his unexpected victory in the general election on 9 May. The abolition of the GST aimed to spur spending in Malaysia and address the rising costs of living. The new administration plans to replace the abolished GST with a sales and services tax (SST). Under the SST, the provision of services will be taxed at 6%, while the sale of goods will incur a 10% tax. The new tax system is expected to be implemented beginning 1 September after the necessary laws have been passed in Parliament.
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