Wee questions govt over continued foreign fund outflow

MCA president Wee Ka Siong has raised concerns over the continued outflow of foreign funds from Bursa Malaysia. In the first week of September, approximately RM640 million in foreign funds left the market, followed by another RM160 million in the second week, as reported by investment research firm MBSB Research. Foreign ownership of Malaysian equities reached a record low of 18.1% in August, with foreign institutional investors extending a six-week streak of net selling on Bursa as of September 11.

In a TikTok video, Wee emphasized that the government must take concrete measures to restore foreign investors' confidence and halt the ongoing outflow. He stated that relying indefinitely on local institutions and government-linked funds to support the market is unsustainable while foreign investors continue to depart. "A healthy stock market needs genuine investor confidence, not merely support from local funds."

Wee highlighted that the outflow of foreign funds from Bursa is not a new issue. From the 14th general election in May 2018 until last week, net foreign fund outflows totaled about RM84.5 billion. Specifically, RM2.3 billion flowed out in 2023, RM42 billion in 2024, and RM22.5 billion in 2025. As of September 11, approximately RM5.3 billion had been withdrawn this year alone.