Bahrain, June 21 -- Fitch Ratings expects Malaysia's debt capital market (DCM) to reach USD640 billion outstanding by end-2026, due to modest growth on increased non-sovereign borrowing, a deep domestic market, a stronger ringgit, continued innovation and digital integration. The first tokenised sukuk out of Malaysia was issued in 1H26, and new regulations governing private debt should create a more enabling environment. The Iran war has had limited direct impact on the DCM as most issuers and investors are domestic.

"Foreign investor demand for Malaysian debt has remained resilient despite global volatility. This reflects the ringgit's appreciation, stable yields, and the relative depth and development of the local DCM," said Bashar Al...