KUALA LUMPUR (Feb 28): Malaysian corporates ended 2025 on a firm note, bolstered by robust economic growth and domestic demand as well as a resilient ringgit.

The aggregate earnings of the 30-stock FBM KLCI stood at RM13.45 billion in the October-to-December quarter (4Q2025), representing a 17.2% drop from RM16.25 billion a year earlier, primarily because of PPB Group Bhd (KL:PPB), which incurred a net loss of RM3.19 billion on the back of a whopping impairment of RM4.17 billion on its investment in Singapore-listed Wilmar International Ltd.

On a quarterly basis, the earnings of the component stocks declined 21.4% from RM17.12 billion.

Looking beyond the benchmark index, earnings breadth was firmer. Among the top 100 Bursa Malaysia-listed companies by market cap, 67 reported year-on-year growth in net profit, while 56 saw quarter-on-quarter expansion. Their combined 4Q2025 earnings totalled RM24.86 billion, up 11.7% from RM22.26 billion a year ago, though marginally lower when compared to RM24.87 billion in 3Q2025.

Research heads believe the earnings momentum could extend into 2026, potentially sustaining foreign fund inflows amid Malaysia’s relatively favourable political and economic environment.

In a separate story, we examine banks’ latest dividend payout guidance following the just-concluded results season.  

Despite high expectations among investors and analysts that banks would provide better forward guidance on dividends and capital management to improve shareholder returns, forward guidance appears to have disappointed.

Read more in this week’s issue of The Edge Malaysia.

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