Hong Leong Bank (HLB) expects Malaysia’s economy to grow moderately at a rate of 4.5% to 5% this year, supported by strong economic fundamentals and increased foreign investments.

Key growth themes expected to drive this performance include the revival of tourism, clean energy initiatives under the National Energy Transition Roadmap (NETR), and infrastructure development momentum in Johor. Malaysia’s position as a neutral player in global trade tensions is also anticipated to enhance its appeal to investors seeking stability and diversification.

Jeffrey Yap, Head of Regional Wealth Management at HLB, reaffirmed the importance of supporting clients’ financial goals in a rapidly evolving wealth management landscape. He highlighted the role of AI-powered solutions, mobile accessibility, and the Asia-Pacific region’s leadership in global wealth creation as transformative factors, while noting that true wealth management extends beyond technology to include an understanding of clients’ values and aspirations.

“Looking at the new year ahead of us, we see ourselves as your partner, empowering you to achieve your investment goals while staying true to our heritage of personalised guidance and long-term wealth preservation, ensuring that we are truly Built Around You,” he said. 

HLB also provided a mixed outlook for global equities in 2025. The US market is expected to lead, driven by strong corporate earnings, resilient consumer spending, and advancements in technology. However, concerns over potential market corrections and elevated expectations for earnings growth were noted, emphasising the importance of balanced investment strategies. AI was identified as a promising sector, with opportunities in areas such as energy, power management, and quantum computing, although investors were advised to prepare for volatility in this space.

Outside the US, Europe faces risks from tariffs, while China’s economic challenges, including weak credit growth, subdued consumer confidence, and a struggling real estate sector, may require aggressive policy interventions. HLB expressed caution but noted that Asian central banks might have room to ease borrowing costs, which could provide some relief to the region’s economies.

In the fixed income space, bond yields remain attractive, with US investment-grade bonds offering an average of 5% and emerging markets providing even higher returns. Private equity continues to be a strong option for long-term growth, particularly for retirement planning and wealth accumulation.

(Source: Hong Leong Bank)

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