Wee questions govt over continued foreign fund outflow

PETAJINGA: MCA president Wee Ka Siong has raised concerns about the government's handling of the continued outflow of foreign funds from Bursa Malaysia. In August, foreign ownership of Malaysian equities dropped to a record low of 18.1%. Investment research firm MBSB Research reported that foreign institutional investors have been selling shares on Bursa for six consecutive weeks as of September 11.

Wee Ka Siong questioned the government's ability to restore foreign investor confidence in a TikTok video. He stated that the government must outline concrete measures to prevent further losses. "We cannot rely indefinitely on local institutions and government-linked funds to support the market while foreign investors continue to leave," he emphasized. "A healthy stock market needs genuine investor confidence, not merely support from local funds."

Wee Ka Siong provided data on the magnitude of foreign fund outflows from Bursa Malaysia. He mentioned that about RM640 million flowed out in the first week of September, followed by another RM160 million in the second week. Over the past five years, net foreign fund outflows from Bursa amounted to approximately RM84.5 billion from May 2018 to September 2023.

In 2023, RM2.3 billion flowed out, followed by RM42 billion in 2024 and RM22.5 billion in 2025. As of September 11, about RM5.3 billion had flowed out of Bursa Malaysia.