WealthVantage December 2025 Market Outlook & Review Communication

Malaysia and global market summary for December 2025.

Global Market Highlights

• Strategists predict global economic growth to be resilient. Global GDP is expected to grow between 2.4% and 3.3%, as per estimates.

• Artificial intelligence is emerging as a central investment theme for 2026, expected to be embedded deeper in global investment strategies and support future productivity gains.

• Foreign inflows into Asian bonds (including Malaysia) hit a six-month high, highlighting demand for yield and diversification amid equity valuation concerns.

• Precious metals like gold and silver reached record highs in late Dec 2025, trading above USD4,400  driven by safe-haven demand amid geopolitical tensions and expectations of interest rate shifts.

• The Bank of Japan (BoJ) raised rates 25 bps to 0.75%, the highest in three decades.

Malaysia Outlook

• Malaysia’s GDP is projected to grow around 4.2%  in 2026, supported by strong domestic demand and continued expansion in the services sectors would remain the main factor.

• The nation’s inflation rose 1.4% in November 2025, with consumer index price at 135.1, compared to 133.3 at the same month in 2024.

• The ringgit extended its rally, up to 4.0425/0540, opening slightly higher against the USD as the dollar weakened after the release of Federal Open Market Committee meeting minutes.

• Economic growth is expected to be slower from 4.6% in 2025 to 4.3% in 2026 due to higher US tariffs on Malaysia.

United States Outlook

• GDP increased at a 4.3% rate last quarter. The economy grew at a 3.8% pace in the second quarter.

• Equity markets remain elevated, and alongside broad risk-asset allocations, this suggests optimism but also potential downside if economic data weakens.

• U.S. financial institutions are adapting to macro headwinds and innovations like AI and digital assets, while regulatory pressures and technological shifts are reshaping financial intermediation.

• Ongoing tariff negotiations and trade policy uncertainty continue to be a key driver of cross-border investment decisions and supply chain adjustments.

China Outlook

• China launched significant initiatives like the Hainan free-trade experiment to attract FDI and integrate more deeply into multilateral trade, aiming to diversify economic drivers and reduce reliance on stimulus.

• Despite annual gains, Chinese equities have softened recently, with concerns about consumption, investment, and money supply momentum.

• Property sector is projected to produce a 1.5% point drag on GDP growth next year.

• The combination of a strong manufacturing sector and weak domestic demand is pushing China’s current account surplus ever higher and this surplus is expected to increase to almost 1% of global GDP over the next 3-5 years.

Alternative Investments

• Gold soared to a record high on Tuesday, coming within a whisker of breaching the $4,500-per-ounce level, as investors flocked to the safe-haven metal on U.S.-Venezuela tensions, while silver also rallied to ‌ a fresh peak.

• Bitcoin traded in a tight USD 85,000 - USD 90,000 range, repeatedly failing to

• reclaim key resistance levels.

• Crude oil experienced substantial volatility throughout the week, with WTI crude oil front-month futures declining below USD55 per barrel.

What’s Next for Investors?

As markets move into a more uncertain and volatile phase, staying invested without a clear strategy can increase risk. Shifting interest rate expectations, global policy changes, and evolving investment themes mean that portfolios may need rebalancing to stay aligned with long-term goals. This is an important time to review asset allocation, risk exposure, and diversification across regions and asset classes. Rather than reacting to market noise, investors are encouraged to take a proactive approach by reviewing their financial plans with a licensed financial planner.

Disclaimer: This article is for information purposes only and does not constitute investment advice; investors should consult a licensed financial planner before making any investment decisions, as market conditions and returns are subject to change.