90
Chart 4.12: MGS Issued Domestically – Classification by Holder (2008-2016)
17%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012 2013 2014 2015 2016
Other Insurance companies
Employees Provident Fund + KWAP Foreign holders
Banking institutions + Development financial institutions
47%
Source: BNM
As at end-2016, the investor base for LCY corporate bonds (i.e. Islamic and conventional
bonds) is dominated by local investors, mainly domestic commercial banks, Islamic banks and
investment banks (51%), insurance companies (33%) and the EPF (10%), with foreign
investors making up another 6% (refer to Chart 4.13). Since the liquidity of Malaysia’s
domestic corporate bond market is significantly derived from local institutions, this provides
some cushion against external shocks and, in turn, accords some degree of stability to the
performance of Malaysia’s bond market. Nevertheless, it remains susceptible to volatility
stemming from global developments.
Chart 4.13: Investor Profile of Malaysia’s LCY Corporate Bonds
Sources: BNM, EPF