KUALA LUMPUR: Industry stakeholders have welcomed the launch of the Capital Market Masterplan (CMP) 2026–2030, saying the roadmap will strengthen market vibrancy, improve governance standards and deepen Malaysia’s capital market as the country positions itself to attract more investment.
The plan, unveiled by the Securities Commission Malaysia on Monday, outlines a strategy to expand the capital market’s size significantly over the next five years while strengthening participation, sustainability and regional connectivity.
Malaysian Investment Banking Association chairman Lee Jim Leng said investment banks will play a central role in driving market growth and value creation under the masterplan.
She noted that the CMP sets an ambitious target of expanding Malaysia’s capital market from about RM4 trillion to RM6 trillion by 2030, in line with the broader economic agenda under Ekonomi Madani.
“Investment banks are effectively the engine room of capital formation,” she told SunBiz.
“They help ensure a strong pipeline of initial public offerings (IPOs), facilitate equity and debt fundraising and provide the advisory support companies need to scale, restructure and expand.”
Lee said intermediaries will also help widen the capital market’s scope by introducing new financing avenues and alternative asset classes beyond traditional listings.
These include private credit markets, digital assets, tokenised credits, carbon credits and renewable energy certificates, which could broaden investment opportunities while supporting Malaysia’s economic transition.
She added that investment banks are also expected to support corporate transformation through mergers and acquisitions, divestments and strategic restructuring, enabling businesses to improve productivity and competitiveness.
At the same time, Lee emphasised that capital market intermediaries are increasingly leveraging Malaysia’s strong position in Islamic finance to help companies expand their international footprint.
“Our intermediaries are already deeply involved in facilitating cross-border expansion, whether through international capital raising, foreign listings or strategic advisory for cross-border mergers and acquisitions,” she said.
Regional initiatives such as the Asean Capital Markets Forum Action Plan 2026–2030 are expected to further strengthen the region’s investment ecosystem and position Asean as an attractive investment destination.
Meanwhile, the Minority Shareholders Watch Group (MSWG) CEO, Dr Ismet Yusof, said the masterplan’s strong emphasis on corporate governance and transparency will be critical in building long-term investor confidence.
He said the CMP reinforces the importance of accountability, disclosure and shareholder engagement as Malaysia’s capital market grows in scale and complexity.
“As Malaysia expands its capital market and attracts more investors, trust and accountability must grow alongside it.”
According to Ismet, stronger governance practices will encourage companies to engage more meaningfully with shareholders, particularly through annual general meetings and improved corporate disclosures.
The masterplan’s focus on digitalisation and broader investor participation is also expected to encourage more informed dialogue between boards and shareholders.
“When shareholders are better informed and able to engage constructively, it strengthens market discipline and encourages companies to adopt better governance practices,” he added.
Ismet noted that transparency remains the cornerstone of investor protection, particularly for minority shareholders who rely heavily on timely, meaningful information to make investment decisions.
He said initiatives aimed at improving disclosure standards and strengthening regulatory oversight will help ensure that investors have clearer insights into areas such as board decisions, related-party transactions, remuneration policies and sustainability performance.
“Companies should view strong governance not as a regulatory burden but as a competitive advantage,” he said.
“Firms with credible governance frameworks tend to attract greater investor confidence, lower their cost of capital and gain easier access to international markets.”
Separately, in a statement, Bursa Malaysia CEO Datuk Fad’l Mohamed said the exchange will play an active role in supporting the masterplan’s ambition to expand Malaysia’s capital market by between RM1.5 trillion and RM2 trillion over the next five years.
He said the exchange will focus on strengthening market vibrancy by improving corporate performance, deepening trading activity and broadening investor access.
This includes efforts to attract a stronger pipeline of IPOs and to develop new indices and programmes that increase the visibility and competitiveness of Malaysia’s listed companies.
In line with the masterplan’s inclusivity agenda, Bursa Malaysia will also work to expand retail investor participation and improve fundraising pathways for small and medium-sized enterprises and mid-tier companies.
Enhancements to the LEAP and ACE Market ecosystems, together with issuer-readiness programmes and capacity-building initiatives, are expected to help more businesses tap public markets for growth capital.
Fad’l added that the exchange will continue advancing sustainability initiatives through the Bursa Carbon Exchange, which aims to accelerate the development of Malaysia’s voluntary carbon market ecosystem.
At the regional level, Bursa Malaysia will also explore cross-border listings and expand its regional investment offerings, such as exchange-traded funds, to strengthen connectivity with international markets.
“As we move into the next phase of market development, collaboration across the entire ecosystem will be essential,” he said.
“By working closely with regulators and industry participants, we can build a more resilient and dynamic capital market that delivers long-term value for investors and the broader economy.”
