Malaysia's bonds attracted record $3.9 billion in foreign inflows in August, the largest monthly amount since 2016. The surge was driven by optimism surrounding the artificial intelligence boom, positioning the nation as Southeast Asia's primary data center hub. Major technology firms, including Oracle Corp. and Amazon.com Inc., have invested billions into the region.

These inflows have supported the ringgit, which rose over 1% against other Asian currencies. Abbas Keshvani, Asia macro strategist at RBC Capital Markets Ltd., noted Malaysia is viewed as an AI winner with strong export growth and foreign direct investment. The trend is expected to continue alongside similar investment patterns.