Foreign investors continued their net selloff for the second consecutive week, while local institutional and retail investors maintained their buying momentum, highlighting a market at a crossroads amid ongoing geopolitical and economic uncertainties.
Foreign investors on Bursa Malaysia continued their net selloff for the second consecutive week, with net outflows amounting to RM484.8 million, according to the latest fund flow report from MBSB Research. The selloff was notably concentrated on Friday and Monday, which saw heavy foreign selling of RM484.5 million and RM328.4 million respectively. This selling activity was somewhat offset by smaller net foreign inflows on Tuesday, Wednesday, and Thursday, which collectively amounted to just over RM328 million.
Sector-wise, foreign investors showed uneven interest. The Financial Services sector attracted the most foreign inflows, totalling RM226 million, followed by Telecommunications & Media with RM154 million, and Consumer Products & Services at RM69.6 million. Conversely, the largest foreign outflows were recorded in Utilities (RM420.5 million), Industrial Products & Services (RM310.1 million), and Construction (RM63.6 million). This segmentation indicates a selective retreat by foreign investors, concentrating their withdrawals in specific sectors while still showing appetite in others.
Local participation has played a significant stabilising role amid this foreign investor selloff. Local institutional investors maintained their buying momentum for the second week running, accumulating RM356.4 million worth of equities, while local retail investors also remained net buyers, with net purchases of RM128.4 million. This buying activity by local investors has assisted in cushioning the market from the full impact of foreign withdrawals.
Market activity improved across all investor categories last week, with average daily trading volume (ADTV) rising by 42.0% for foreign investors, 9.3% for local retailers, and 1.2% for local institutions. This suggests a renewed market participation ahead of the year-end, despite persistent foreign outflows.
The trend seen recently aligns with an extended period of foreign net selling in Bursa Malaysia over the past months. For instance, data from earlier in the year highlighted consecutive weeks of foreign outflows, with MIDF Research reporting a sustained 20 to 22-week streak of net foreign selling earlier in 2025. During those periods, net outflows reached much higher figures, such as RM881.5 million and over RM1.2 billion in certain weeks, attributed partly to regional geopolitical tensions and global trade uncertainties. During these episodes, local institutions consistently stepped in as net buyers, often absorbing substantial foreign sell pressure.
Interestingly, the sectors attracting foreign inflows and outflows have shifted somewhat over time. For example, earlier in the year, the Financial Services sector faced heavy foreign selling alongside Consumer Products & Services and Utilities, while Technology, Telecommunications, and Plantations occasionally saw modest foreign inflows. Recent data indicates that Financial Services and Telecommunications remain attractive for foreign purchases, while Utilities and Industrial Products face significant outflows. This variation underscores the dynamic nature of investment flows influenced by shifting macroeconomic conditions and sector-specific outlooks.
There have also been instances where foreign investors briefly returned as net buyers. A notable example was in June 2025, when foreign investors posted a net inflow of RM33.2 million, breaking a five-week selling streak. However, these moments have been short-lived in the context of longer-term foreign outflows.
Looking ahead, the persistent foreign net selling juxtaposed with local institutional and retail investor accumulation poses continuing questions about market sentiment and underlying economic factors. The local investor base appears committed to supporting the market amid external uncertainties. Yet, the sizeable foreign outflows highlight ongoing risks and caution among international investors towards Malaysian equities.
In summary, while foreign investors maintain a cautious stance with ongoing net selling on Bursa Malaysia, local institutions and retailers have played a critical role in offsetting some of the selling pressure, supporting market liquidity and stability. Both the sectorial shifts and investor activity patterns observed suggest a market at a crossroads, influenced by broader geopolitical tensions and economic uncertainties but buoyed by resilient local demand ahead of year-end repositioning.
- https://www.businesstoday.com.my/2025/12/01/local-institution-offset-foreign-investor-selloff-of-rm484-million/?utm_source=rss&utm_medium=rss&utm_campaign=local-institution-offset-foreign-investor-selloff-of-rm484-million – Please view link – unable to able to access data
- https://www.businesstoday.com.my/2025/12/01/local-institution-offset-foreign-investor-selloff-of-rm484-million/ – Foreign investors continued their selloff on Bursa Malaysia for the second consecutive week, recording net outflows of RM484.8 million, according to MBSB Research’s latest fund flow report. The bulk of the foreign selling took place on Friday (-RM484.5 million) and Monday (-RM328.4 million). In contrast, the rest of the week saw notable inflows, led by Thursday (RM158.3 million), Wednesday (RM120.5 million) and Tuesday (RM49.4 million). Foreign investor interest remained uneven across sectors. The top three sectors with net foreign inflows last week were: Financial Services – RM226.0 million. Telecommunications & Media – RM154.0 million and consumer Products & Services – RM69.6 million. Meanwhile, the largest foreign outflows were recorded in: Utilities – RM420.5 million, Industrial Products & Services – RM310.1 million and Construction – RM63.6 million. Local institutional investors also marked a second consecutive week of net buying, accumulating RM356.4 million. Local retailers followed the same trend, chalking up RM128.4 million in net purchases, also their second week of sustained buying. Market activity improved across the board, with average daily trading volume (ADTV) rising for all investor categories: Foreign investors: +42.0% Local retailers: +9.3% Local institutions: +1.2%. The strong rebound in trading volumes suggests renewed participation ahead of year-end positioning, despite persistent foreign outflows.
- https://www.thestar.com.my/business/business-news/2025/03/10/bursa-malaysia-registers-20-straight-weeks-of-net-foreign-outflow – Bursa Malaysia registered a 20th consecutive week of net selling by foreign investors as the geopolitical tension sparked by the US trade tariffs continued to weigh on sentiment for equities. In its weekly fund flow report, MIDF Research reported that there was a net foreign outflow of RM881.5mil from Malaysia’s stock market. This was in line with the broader sentiment in the region. According to MIDF’s data, the only key market in the region that recorded a net foreign inflow in the past week was the Philippines, with all others falling into the red. During the week, foreign investors on Bursa Malaysia were net sellers on every trading day. The sectors that recorded the most net foreign ouflows were financial services (RM407mil), consumer products and services (RM215.1mil) and utilities (RM167.1mil). Sectors that registered the highest net foreign inflows were technology (RM40mil), telecommunications and media (RM26.2mil) and plantations (RM10.1mil). Local institutions remained net buyers of local equities for the 20th consecutive week with a net inflow of RM617.3mil. Local retail investors were buyers for a fourth straight week with a net inflow of RM264.2mil. The average daily trading volume (ADTV) saw declines across the board except for local institutions. Foreign investors and local retail experienced a decline of 35.6% and 3%, respectively, while local institutions saw an increase of 1.2%.
- https://www.thestar.com.my/business/business-news/2025/03/24/bursa-malaysia-registers-rm125bil-in-net-foreign-outflow – Bursa Malaysia registered a 22nd straight week of foreign outflow as offshore investors shirked local equities in favour of safe haven assets amid the escalation of global trade disputes. Foreign funds sold RM1.25bil net of Malaysian equities last week, slightly less than RM1.34bil in net selling recorded in the previous week, according to MIDF Research in its weekly fund flow report. The exodus of foreign funds was observed across the Asian region. According to MIDF, the only Asian countries it monitored that recorded net foreign inflows last week were South Korea and the Philippines. On Bursa Malaysia, only the plantations sector experienced a net inflow of foreign investment, to the sum of RM2.4mil. The sectors that led the foreign outflow were financial services (RM609.7mil), industrial products and services (RM167.9mil) and consumer products and services (RM148.4mil). Also for the 22nd consecutive week, local institutions have been supporting the local market with net purchases of RM1.23bil. Local retail investors were net buyers for a sixth straight week, with a net inflow of RM25.5mil. The average daily trading volume (ADTV) saw broad-based decrease, except for foreign investors, said MIDF. Local institutions and local retail recorded a decline of 11.9% and 14.8%, respectively, while foreign investors saw an increase of 27.4%.
- https://www.thestar.com.my/business/business-news/2025/06/03/foreign-investors-withdraw-rm102bil-from-malaysian-equities-market – The exit of foreign investors from the Malaysian stock market accelerated past the RM1bil mark over the previous week. According to MIDF Research data, the net outflow of foreign funds rose to RM1.02bil, nearly 2.6 times more than the prior week’s outflow of RM392.3mil. The increase in net selling is in step with the regional trend, where foreign investors have been selling down their holdings amid growing anxieties over the trade and economic uncertainties. On Bursa Malaysia, the sectors that saw the highest net foreign outflows were financial services (RM565.8mil), consumer products and services (RM172.2mil) and healthcare (RM129.9mil). Conversely, the sectors with the highest net foreign inflows were property (RM47.9mil), construction (RM33.3mil) and energy (RM5.2mil). As the offshore funds left the domestic market, local institutions stepped in for a second consecutive week, with net purchases of RM876.5mil. Local retailers were also net buyers for a second week with a net inflow of RM142.6mil. The average daily trading volume (ADTV) saw a broad-based incline last week. Local institutions and local retailers saw an increase of 0.03% and 1% respectively, while foreign investors saw a rise of 45.6%.
- https://www.malaymail.com/news/money/2025/06/30/foreign-investors-turn-net-buyers-on-bursa-rm332m-inflow-breaks-five-week-sell-streak/182215 – Foreign investors turned net buyers on Bursa Malaysia, recording a net inflow of RM33.2 million, breaking a five-week sell streak. Inflows ranged from RM5.0 million to RM144.1 million, whereas outflows were between -RM50.7 million and -RM65.2 million. The three sectors that recorded the highest net foreign inflows were utilities (RM102.6 million), transportation and logistics (RM45.9 million) and industrial products and services (RM22.9 million). Meanwhile, the top three sectors that recorded the highest net foreign outflows were financial services (-RM109.9 million), property (-RM35.9 million) and telco and media (-RM28.0 million). Similarly, local institutions continued their buying activities, extending to a sixth week buying streak with net inflows amounting to RM142.8 million, smaller than the previous week’s inflow of RM510.6 million. Meanwhile, local retailers returned to net foreign sellers last week, recording a net outflow of -RM176.0 million, snapping their one-week inflow streak. The average daily trading volume saw a broad-based increase last week, except for foreign investors. Local retailers and local institutions saw an increase of +12.7 per cent and +9.7 per cent, respectively, while foreign investors saw a decline of -17.0 per cent.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative is recent, dated December 1, 2025. Similar reports from earlier in the year, such as March 24, 2025, also discuss foreign investor outflows on Bursa Malaysia, indicating a recurring trend. ([thestar.com.my](https://www.thestar.com.my/business/business-news/2025/03/24/bursa-malaysia-registers-rm125bil-in-net-foreign-outflow?utm_source=openai)) The report cites MBSB Research’s fund flow report, suggesting it may be based on a press release, which typically warrants a high freshness score. However, the presence of similar narratives from earlier in the year indicates that the content may be recycled. The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.
Quotes check
Score:
9
Notes:
The narrative does not contain direct quotes, which suggests it may be original or exclusive content. The absence of quotes makes it difficult to verify the originality of the content.
Source reliability
Score:
7
Notes:
The narrative originates from Business Today, a business media platform delivering timely news, insights, and analysis on the economy, leadership, innovation, and policy. While it is a business media platform, its credibility and reputation are not well-established, which raises some uncertainty about the reliability of the source.
Plausability check
Score:
8
Notes:
The claims about foreign investor outflows on Bursa Malaysia are plausible and align with previous reports from earlier in the year. The narrative lacks supporting detail from any other reputable outlet, which raises concerns about its credibility. The tone and language used are consistent with typical financial reporting, suggesting the content is not synthetic.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents plausible claims about foreign investor outflows on Bursa Malaysia, supported by similar reports from earlier in the year. However, the lack of direct quotes and the origin from a less-established source raise concerns about the originality and reliability of the content. The absence of supporting details from other reputable outlets further diminishes confidence in the narrative’s credibility.