US$565mil Withdrawn from Asian Markets (from 17 March)

Foreign investors remained net sellers across eight Asian markets, with total outflows reaching US$564.9 million (RM2.505 billion) for the week beginning 17 March 2025. According to MIDF Amanah Investment Bank Bhd’s fund flow report, titled “From Growth to Gridlock”, South Korea led the region with a net inflow of US$1.68 billion (RM7.45 billion) marking a sharp reversal after nine consecutive weeks of outflows. 

The only countries that recorded net foreign inflows were South Korea and the Philippines, while other regional markets continued to experience outflows. The Philippines recorded a net inflow of US$40.1 million (RM177.83) for the third consecutive week, following its securities regulator’s signal of openness to reducing the 20% minimum public float requirement for initial public offerings, potentially attracting more listings.

 

Source: https://ms.wikipedia.org 

Conversely, Indonesia registered its ninth consecutive week of foreign outflows, amounting to US$432.1 million (RM1.916 billion) amid economic and trade fluctuations. 

In Malaysia, the plantation sector recorded net foreign inflows of RM2.4 million, while foreign investors extended their selling streak on Bursa Malaysia for the 22nd consecutive week, with a net outflow of RM1.25 billion. MIDF said the net selling value declined slightly from RM1.34 billion in the previous week. 

In contrast, local institutions continued to support the market, marking their 22nd consecutive week of net buying, with an inflow of RM1.23 billion. The financial services sector recorded the highest net foreign outflow at RM609.7 million, followed by industrial products and services (-RM167.9 million) and consumer products and services (-RM148.4 million). Local retail investors extended their net buying streak for a sixth straight week, recording an inflow of RM25.5 million. 

Meanwhile, the average daily trading volume declined across most segments except for foreign investors. Local institutions and retail investors saw declines of 11.9% and 14.8%, respectively, while foreign investors recorded an increase of 27.4%. 

The level of volatility has to do with perception of Trump’s tariffs. Many are not clear where this leads to and hence withdrawals to safe havens. The impact of tariffs will vary for different countries and according to their openness. Trump’s advisors like Peter Navarro are either naïve or downright dumb. Most probably, more of the latter! 

Reference:

Foreign investors pull US$565mil from Asian markets, FMT/Bernama, 24 Mar 2025