On September 7, driven by expectations of the positive impact of the AI boom on Southeast Asia's economy, Malaysia's bond market attracted record capital inflows in August. Foreign investors poured US$3.9 billion into Malaysian government and corporate bonds, marking the largest monthly inflow since data became available in 2016. As a major data center hub in Southeast Asia, Malaysia has attracted billions of dollars in investments from companies such as Oracle and Amazon. The capital inflows also supported the ringgit exchange rate, with the ringgit appreciating by more than 1% in August, making it one of the best-performing currencies in Asia. Abbas Keshvani, Asia Macro Strategist at RBC Capital Markets, stated that global funds are attracted to Malaysia as it is a winner in the AI sector, with strong export growth and foreign direct investment inflows, and this trend is expected to continue with similar investments.
