A long-term investor focused on Malaysian stocks shares their experiences, insights, and reflections along the way.
Two furniture stocks, Liihen and JayCorp, were the main culprits in the investment performance's 20.31% annual decrease in 2025, which was significantly worse than the previous year. Other companies whose stock prices dropped include Gadang, Luxchem, Matrix, and YTL Power. Among the stocks that rose by more than 18.17% for the year, Kimlun was the only one that did decently. The company won a slew of building contracts this year. While YTL Power's stock price did well, it was not enough to compensate for the underwhelming performance of other stocks, and unrealized accumulated losses increased to 12.89%. This year, the portfolio was still being repaired after the liquidation of CTOS, Elsoft, and Homeriz, as well as the reduction of stakes in Liihen and JayCorp. In the meantime, we expanded our holdings in Kimlun, OCK, and YTL Power, and acquired new stocks such as Uchitech, KIPREIT, and Paradigm.
The FTSE Bursa Malaysia KLCI closed at its highest level since 2018, up 2.30% year to date to 1680.11 points. However, the FTSE Bursa Malaysia Small Cap Index (FBMSCAP) fell 12.20% to 15772.11 points, and the FTSE Bursa Malaysia All Share Index (FBMEMAS) fell 2.24% to 12303.67 points, indicating a poor performance in the Malaysian stock market, especially as small and mid-cap stocks were adversely affected by economic and policy factors, resulting in unfavorable earnings and outlooks.
As the year comes to a close, the most significant development is the denial of former Prime Minister Najib Razak's request for home detention, coupled with his conviction on 25 counts in the 1MDB corruption scandal, which includes a fine of RM11.4 billion and a prison term of 15 years. Some individuals are experiencing happiness, others are feeling sadness, some harbor regrets, and a few are in mourning. Many continue to recall with nostalgia the years of Najib's leadership: policies supportive of commerce, a robust market economy, an improved standard of living for the populace, and a world maintained in peace. However, the Najib era was not without its share of scandals. In addition to the 1MDB scandal and his atypical association with Jho Low, there was the C4 explosion of a Mongolian woman, the Teoh Beng Hock murder case, the dismissal of then-Attorney General Tan Sri Abdul Ghani, the submarine commission scandal, and numerous other incidents. All of these are inextricably connected to Najib. We continue to bear the consequences of the damage Najib's rule inflicted on the public finances, foreign investor confidence, the government system, and the country's reputation. The aggregate debt of 1MDB, encompassing interest, surpasses RM50 billion. We acknowledge that Najib has indeed made substantial contributions to our country, but politicians who err should accept responsibility rather than attempt to eradicate their previous accomplishments. Malaysia is a nation governed by a structured legal system and the rule of law. We trust the judiciary to uphold the legal outcome, untainted by emotional influence or manipulated public sentiment. Please remember that our focus is not on Najib as an individual; rather, it is directed toward those engaged in corruption, money laundering, and abuse of authority, regardless of their previous reputation. Everyone should be treated equally under the law. Naturally, Najib's wife, kids, and UMNO followers remain devoted to him and harbor strong feelings for him. Additionally, we ought to continue to show these individuals some fundamental respect. Najib's family and allies should also know the harm he has done to the country, and they should make amends by following the court's ruling.
2025 was a difficult year, especially since Trump's return to the presidency brought more turmoil and uncertainty to the world. Although the retaliatory tariffs have ended, their economic impact will not be clear until 2026. Global inflation has cooled, but price pressures have not eased, and people still feel they don't have enough money. It's not that the government hasn't tried to alleviate the pressure, such as the RON95 petrol subsidy, the RM100 aid, electricity tariff reductions, and the car loan interest rate reform starting in 2026, but even the most basic food, living expenses, insurance, and medical costs still put pressure on many people due to rising prices. Of course, Malaysia is still a fortunate country, without natural disasters or earthquakes, only politicians constantly manipulating ethnic and religious issues. Looking ahead to the new year, I hope it will be a better year than 2025, with stable work and life, more reading and thinking, and a peaceful continuation of long-term stock investment.
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