This article first appeared in The Edge Malaysia Weekly on February 2, 2026 - February 8, 2026

NORWAY’s sovereign wealth fund sharply boosted its exposure to Malaysian government bonds in the second half of 2025, according to its latest disclosure.

Formally known as the Government Pension Fund Global (GPFG), the fund’s exposure to Malaysian government bonds surged nearly 2½ times to US$1.44 billion (RM5.67 billion) from US$580.6 million in the first half of 2025, The Edge’s analysis of its half-yearly disclosure showed.

Its holdings of bonds issued by national oil and gas company Petroliam Nasional Bhd (PETRONAS) edged up to US$318 million, lifting its total fixed income portfolio in Malaysia to US$1.47 billion at end-2025, from US$610 million six months earlier.

GPFG also raised the value of its equity investments, even though the number of companies it invested in was reduced. The fund ended the year with 200 stocks worth US$2.8 billion, compared with 209 counters valued at US$2.53 billion six months earlier.

The purchases came as the ringgit appreciated more than 10% against the US dollar in 2025, while the Malaysian economy expanded faster than expected. Bank Negara Malaysia, meanwhile, has kept interest rates steady, adding to the appeal of the country’s assets at a time of monetary policy easing elsewhere.

The fund, which owns nearly US$2.1 trillion worth of investments, is managed by the Norwegian central bank, which seeks to invest surplus revenues from the country’s petroleum sector. As the world’s single-largest investor, GPFG holds stakes in about 7,200 companies across the globe.

In Malaysia, GPFG exited 37 companies in the second half of 2025, including Pecca Group Bhd (KL:PECCA), United Plantations Bhd (KL:UTDPLT), Dutch Lady Milk Industries Bhd (KL:DLADY), Scientex Bhd (KL:SCIENTX) and Genetec Technology Bhd (KL:GENETEC).

The fund also significantly reduced its exposure to stocks such as Bumi Armada Bhd (KL:ARMADA), to 0.15% from 2.27%, and Scicom (MSC) Bhd (KL:SCICOM), to 0.24% from 1.97%.

Among the 28 additions to its portfolio were Aquawalk Group Bhd (KL:AQUAWALK), Hap Seng Consolidated Bhd (KL:HAPSENG), Teladan Group Bhd (KL:TELADAN), Ge-Shen Corp Bhd (KL:GESHEN) and Solarvest Holdings Bhd (KL:SLVEST).

Investments in several counters were also increased, most notably in Pekat Group Bhd (KL:PEKAT) and Malaysian Pacific Industries Bhd (KL:MPI).

In terms of sectors, financial accounted for more than a third of GPFG’s Malaysian equity portfolio, followed by industrial (14.6%) and technology (8.5%) as at end-2025.

GPFG does not have any investments in private real estate or unlisted renewable energy infrastructure in this country. All in all, its investments in Malaysia totalled US$3.15 billion, or about 0.2% of its global portfolio.

Globally, the fund produced a return of 15% in 2025. Equity investments generated a return of 19%, fixed income 5% and investments in unlisted real estate 4%. The return on unlisted renewable energy infrastructure was more than 18%.

By asset class, 71.3% of the fund was invested in equities and 26.5% in fixed income. Unlisted real estate made up 1.7% of its assets and the remaining 0.4% was in unlisted renewable energy infrastructure. 

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.