Commodities - Malaysia

Malaysia

The nominal value in the Commodities market is projected to reach US$176.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.54% resulting in a projected total amount of US$210.20bn by 2029.
The average price per contract in the Commodities market amounts to US$0.05 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 3,944.00k by 2029.

Market

Region

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Currency

Analyst Opinion

The Commodities market in Malaysia is experiencing a shift in customer preferences towards more diverse investment options. Investors are increasingly looking for opportunities to diversify their portfolios and manage risks through exposure to different types of Commodities.

Customer preferences: Investors in Malaysia are showing a growing interest in alternative investment options within the Commodities market, such as futures and options. This shift can be attributed to a desire for portfolio diversification and risk management. Additionally, investors are seeking higher potential returns that these financial derivatives can offer compared to traditional investments.

Trends in the market: One noticeable trend in the Malaysian Commodities market is the increasing trading volume of financial derivatives. This trend is driven by the growing number of sophisticated investors who are looking to capitalize on price movements in the market. Additionally, advancements in technology have made it easier for retail investors to access and trade these financial instruments.

Local special circumstances: In Malaysia, the Commodities market is heavily influenced by the performance of the palm oil industry. As one of the world's largest producers of palm oil, Malaysia plays a significant role in setting global prices for this commodity. Therefore, fluctuations in the palm oil market can have a direct impact on the performance of Commodities derivatives in the country.

Underlying macroeconomic factors: The development of the Commodities market in Malaysia is also influenced by broader macroeconomic factors such as global trade dynamics and geopolitical events. As a major player in the global Commodities market, Malaysia is susceptible to changes in international trade policies and economic conditions. These factors can impact the demand and prices of Commodities derivatives in the country.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.