Malaysia's debt capital market will hit $640 billion outstanding by 2026, Fitch Ratings said in a recent release.
Market activity will gain from modest expansion in increased non-sovereign borrowing, a robust domestic market, a stronger ringgit, further innovation, and digital linkages, Fitch said.
The Iran war has narrow direct effects on the country's debt capital market given the large share of domestic issuers and investors, according to Fitch.
Meanwhile, foreign investor interest has remained even with global uncertainties, Fitch's global head of Islamic finance Bashar Al Natoor said.
Malaysia will continue to be one of the largest global sukuk markets and a major debt capital market in Southeast Asia, the analyst said.
The country's debt capital market rose above $610 billion outstanding for the first five months of 2026, rising 6.5% year over year, with sukuk having a 60% share, Fitch said.