Malaysia Share Market: Key News and Announcements Impacting July 2025

As of July 13, 2025, several recent developments have sent ripples through Malaysia’s share market, influencing investor sentiment and sectoral performance. Here’s a rundown of the key news and announcements shaping the Bursa Malaysia landscape this month.

US Tariff Hikes Cast a Shadow

A major announcement this week was the imposition of a 25% tariff on Malaysian exports to the United States, effective July 2025, as declared by U.S. President Donald Trump. This follows a period of trade uncertainty that has already impacted market sentiment. The tariff hike, aimed at addressing trade imbalances, is expected to affect Malaysian exporters, particularly in sectors like technology and manufacturing. Bursa Malaysia’s FBM KLCI index reflected this unease, closing nearly flat at 1,529.24 on July 9 after a 0.90-point dip, signaling cautious trading amid global trade policy shifts.

Central Bank Cuts Rates to Counter Slowdown

In response to a weaker growth outlook, Bank Negara Malaysia (BNM) announced a surprise rate cut on July 9, lowering the Overnight Policy Rate (OPR) to 2.75%—the first reduction in five years. This move aims to stimulate economic growth amid global trade tensions and a slowing industrial output, which grew by only 0.3% year-on-year in May, well below the expected 2.1%. The central bank projects inflation to remain moderate, with headline inflation expected between 2% and 3.5% for 2025. This rate cut could provide relief to consumer and investment-driven sectors, potentially boosting stocks in banking and real estate.

Energy Sector Gains Momentum

On the brighter side, Malaysia’s energy sector received a boost with Dialog Group securing a 14-year production sharing contract (PSC) from Petronas for the Mutiara Cluster off Sabah, announced on July 1. This marks the first PSC under Malaysia’s Bid Round 2025, with production expected by 2029. The deal underscores Malaysia’s push to strengthen its oil and gas industry, potentially lifting energy stocks like Dialog Group on Bursa Malaysia.

Renewable Energy Sector Shines

Analysts are optimistic about Malaysia’s renewable energy sector, driven by a strong policy pipeline. Kenanga highlighted a surge in solar order books as companies race to meet corporate green power program (CGPP) deadlines by end-2025. Additionally, a request for quotation for 400MW/1600MWh of battery energy storage systems (BESS) closed in February, with results expected later this year. This has already led to MYR 2.9 billion in contract awards, benefiting listed firms in the renewable energy space. Investors may see opportunities in solar and biomass-related stocks as Malaysia accelerates its energy transition.

Halal Industry Bolsters Economic Confidence

Malaysia’s halal industry continues to be a bright spot, contributing RM149 billion to GDP and RM61.8 billion in exports from 2023 to 2025, as reported on July 1. With an 89.7% implementation rate under the Halal Industry Master Plan and RM3.8 billion invested in 14 halal parks, this sector is gaining global traction. Companies tied to halal food, logistics, and certification may see increased investor interest, particularly as Deputy PM Zahid emphasized strong local and global confidence in this space.

Data Centre Boom Supports Construction

Despite higher electricity costs, Malaysia’s data centre boom is expected to persist, supporting construction and related industries. Stocks like Southern Cable Group are well-positioned to benefit from rising power demand driven by data centres and industrial developments, according to Apex Securities. This trend could provide a buffer against trade-related headwinds for construction and utility stocks.

Market Sentiment and Global Context

The broader market sentiment remains cautious due to global trade uncertainties, with Asian markets, including Bursa Malaysia, reacting to U.S. tariff announcements. Posts on X noted a decline in Malaysian tech and construction stocks earlier this month, attributed to U.S. policy uncertainties and reports of draft AI restrictions. However, sectors like renewable energy and halal industries are showing resilience, offering potential safe havens for investors.

What We Think About The Share Market

Based on our analysis, we anticipate that the broader market may exhibit sideways movement for the coming days, potentially extending to weeks. However, we remain vigilant, continuously monitoring individual stocks, as select shares are experiencing upward price trends while others are trending downward.

Notable Stocks in Focus

We say this CEB is upward trend.

HEGROUP upward trend too.

Based on our analysis, POS Malaysia is currently exhibiting a downward trend. Over the next few days, and potentially weeks, we will monitor whether this trajectory shifts.

INARI Amertron has been trading sideways over the past few weeks. We will closely monitor next week’s activity to assess any potential shifts in its trajectory.

If you want to know more about the tools i used to conclude my investment decision, private message me on X or Telegram.

These developments highlight a mixed outlook for Malaysia’s share market in July 2025, with trade challenges offset by domestic policy support and sectoral strengths. Stay tuned for further updates as these stories unfold.

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.