Malaysia Market Shaken by Global Tariff Turmoil

Cuckoo International (MAL) has postponed its highly anticipated IPO on Bursa Malaysia, citing global market volatility. The household goods giant was expected to raise RM470 million, but has now moved its listing date from April 30 to June 24.

CEO Hoe Kian Choon described the delay as “prudent,” given near-term market risks. “We remain confident in the company’s long-term prospects,” he added. Investors may withdraw applications, with a supplementary prospectus to be issued.

The deferral comes amid sweeping trade tensions. U.S. President Donald Trump recently imposed a 125% tariff on Chinese imports, while granting a 90-day pause for other nations. Malaysia, previously facing a 24% tariff, now has temporary relief. Still, uncertainty looms large within the market.

Bank Negara Malaysia has responded cautiously. Governor Abdul Rasheed Ghaffour said the central bank will hold off policy changes until there’s clarity on tariff details. He acknowledged the ringgit’s ongoing volatility, pledging intervention to maintain market order. The bank is also reviewing its 2025 GDP growth forecast of 4.5% to 5.5%.

Malaysia faces market turmoil

Despite robust 5.1% growth in 2024, Malaysia’s economy now faces headwinds from external shocks. Authorities have ruled out retaliation, opting instead for bilateral talks with the U.S. to protect national interests. Critics have called for greater ASEAN unity however the government has not responded.

Meanwhile, gold prices in Malaysia have hit an all-time high of RM500 per gram, up from RM463 just a month earlier. Analysts link the surge to investor anxiety over geopolitical tensions and erratic trade policies. The Middle East conflict, market selloffs, and U.S. tariff volatility have all driven demand for gold as a safe-haven asset.

“Gold is shining brightest when confidence in other markets is dimming,” said one commodities expert.

With markets on edge, Malaysia’s path forward will depend on how quickly global trade tensions ease. For now, IPO delays and gold rallies signal that investors are preparing for rougher times ahead.