Macquarie Names Malaysia Top ASEAN Market for 2025
Macquarie ranks Malaysia first among five ASEAN markets for 2025, citing 4.9% GDP growth and tech investments. Philippines second as value play, Thailand drops on political uncertainty.
Australian investment bank Macquarie has positioned Malaysia as its top pick among five Southeast Asian markets for 2025, citing 4.9% GDP growth, anticipated corporate capital spending, and currency strength as primary drivers. The ranking places Malaysia ahead of the Philippines, Singapore, Indonesia, and Thailand in the firm's regional equity research coverage.
Strong Economic Performance Drives Top Ranking
Jayden Vantarakis, Macquarie's head of ASEAN equity research, announced the rankings at a media briefing in Singapore, highlighting Malaysia's economic momentum under Prime Minister Anwar Ibrahim's administration. The country's 4.9% GDP growth exceeded official forecasts of 4% to 4.8%, while trade volumes reached a record RM3.1 trillion (~US$690 billion) in 2025.
Mission Media
"Malaysia ranks the highest in terms of valuation. We have the most upside across our coverage," Vantarakis said, according to The Business Times.
The country has attracted significant technology sector investments, including YTL Power's partnership with Nvidia to develop AI data centers in Johor. Malaysia's exports to the United States surged 50.8% year-over-year in March 2025, demonstrating supply chain agility amid global trade tensions.
Regional Competitors Face Different Challenges
The Philippines secured second place as a "value play" despite underperforming in 2024, with stock valuations at nine times price-to-earnings ratio offering significant upside potential. Macquarie expects reduced domestic political tensions to create a more supportive business environment for companies operating in the market.
Singapore ranked third, viewed as a "safe haven" market that has performed exceptionally well recently, largely driven by its three major banks. However, Macquarie anticipates performance broadening beyond banking, with lower interest rates potentially benefiting real estate investment trusts while pressuring bank revenues.
Indonesia faces currency pressures, with the rupiah hitting all-time lows against the US dollar. Concerns about central bank autonomy have emerged following President Prabowo Subianto's nephew's nomination to Bank Indonesia's board, creating uncertainty for investors monitoring the administration's growth agenda.
Political Uncertainty Weighs on Thailand
Thailand ranked lowest among the five markets due to political uncertainty, with elections scheduled for February 8 potentially ushering in the country's fourth prime minister in three years. The three major competing parties offer divergent economic proposals for revitalizing the Thai economy, creating challenges for companies planning long-term investments.
The Johor-Singapore Special Economic Zone, launched in January 2025, has attracted more than 30 technology manufacturers with tax incentives and streamlined customs processes. The initiative positions Malaysia as a gateway for high-tech manufacturing and logistics operations targeting Southeast Asian markets.
Macquarie's equity research division covers 855 Asian stocks, including 200 in Southeast Asia, providing institutional investors with guidance on regional market opportunities.
Want to stay up-to-date on the stories shaping Asia's media, marketing, and comms industry? Subscribe to Mission Media for exclusive insights, campaign deep-dives, and actionable intel.
