Global Central Banks Boost Their Holdings of Malaysia Bonds

Foreign central banks and governments have boosted their share of Malaysian sovereign bonds, underscoring the nation’s growing appeal as a reserve asset in a volatile global environment.

The institutions owned 36% of all overseas holdings of the Southeast Asian country’s sovereign notes at end-March, the highest level in Bank Negara Malaysia data going back to 2015, and versus 29.4% in March 2025. The bonds have returned nearly 12% to dollar-based investors over the past year, outperforming all emerging-market peers in Asia.