PETALING JAYA: The Malaysian capital market outperformed most of its regional counterparts in 2024, despite experiencing net foreign equity outflows.
This resilience was driven by strong buying interest from several local institutional investors, stable political and macroeconomic conditions and the recovery of the ringgit against major currencies.
According to the Securities Commission Annual Report 2024, the total capital market size expanded by 9.7% year-on-year to RM4.2 trillion in 2024, driven by growth in both equity market capitalisation and total bonds and sukuk outstanding.
The domestic capital market has grown at an average annual rate of 5.5% since 2020, with bonds and sukuk outstanding increasing by 7.1% per annum, while equity market capitalisation rose by 4.0% per annum.
In parallel, the Islamic capital market (ICM) recorded an 8.5% growth, reaching RM2.6 trillion in 2024.
The SC noted that since 2020, the total ICM has grown at an average annual rate of 5.3%, driven by a 7.1% increase in sukuk outstanding and a 3.6% rise in syariah-compliant equities.
Total fundraising in the equity and bond markets grew by 8.7% from 2023, amounting to RM138.9 billion, compared to RM127.7 billion raised in the previous year. This was primarily driven by a significant increase in primary fundraising activities, including a record-breaking 55 initial public offerings, alongside sustained momentum in bond and sukuk issuances.
Alternative financing avenues continued to support micro, small, and medium enterprises as well as mid-tier companies, raising RM4.1 billion in 2024. This growth was largely attributed to the strong performance of peer-to-peer financing, as ongoing measures were implemented to enhance access to capital for businesses of all sizes.
Meanwhile, the fund management industry’s assets under management surpassed RM1 trillion, recording a 9.6% growth to RM1.07 trillion. This expansion was primarily driven by strong performance in the global equity markets.
On the enforcement side, the SC received a total of 8,501 cases in 2024, comprising 3,910 complaints and 4,591 inquiries, representing a 60% increase from 2023 of 5,318 cases.
The market regulator said the increase was mainly driven by unlicensed activities and scams, which accounted for 51.4% and 62.2%, respectively, of the total complaints and inquiries received. “Complaints and inquiries on scams and unlicensed activities have been consistently rising, with a 337% increase from 2019 to 2024,” it said.
While the overall rise appears alarming, the SC noted that it is encouraging that more people are reporting scams and unlicensed activities without falling victim before approaching the commission.
The SC said through complaints and inquiries received, it gained insights into the prevailing trends and emerging modus operandi. This, in turn, allowed it to take the necessary interventions swiftly to curb illegal activity and prevent more people from falling victim.
Meanwhile, as of Dec 31, 2024, there were a total of 62 active investigation cases, according to the commission.
The SC Annual Report 2024 noted that investigating officers recorded statements from 373 individuals, with over half obtained from investors/account holders, professionals such as investment bankers, auditors, and lawyers, as well as employees, directors, and senior management of public-listed companies.
“This reflects the SC’s active investigations targeting securities fraud and corporate misconduct offences,” it added.
Additionally, the SC conducted a series of raids across 14 locations nationwide to gather documentary evidence for ongoing investigations. According to the SC, these operations were met with substantial cooperation from the individuals and companies involved.
