KUALA LUMPUR: Malaysia’s capital market is projected to grow to between RM5.8 trillion and RM6.3 trillion by 2030 under a new roadmap unveiled by the Securities Commission Malaysia (SC) aimed at strengthening market dynamism, expanding investor participation and positioning the country as a stronger regional investment gateway.
SC chairman Mohammad Faiz Azmi said the plan aims to expand the capital market to RM2 trillion from RM4.3 trillion as at end-2025, within five years.
“The masterplan is an ambitious plan. We are aiming to grow the capital market size by RM1.5 trillion to RM2 trillion in five years,” he said at the launch today of the Capital Market Masterplan 2026-2030 (CMP 2026-2030), which outlines strategies to accelerate the development of Malaysia’s capital market as a key driver of national economic transformation.
This expansion, said Faiz, would translate into a compound annual growth rate of 6% to 8%, allowing the capital market to outpace the country’s historical real gross domestic product growth.
Faiz said the masterplan reflects the collective efforts of policymakers and industry players to strengthen the capital market’s role in supporting Malaysia’s long-term economic aspirations.
Launched by Prime Minister Datuk Seri Anwar Ibrahim, CMP 2026-2030 is aligned with national economic priorities, including the Madani Economic Framework, 13th Malaysia Plan, New Industrial Master Plan 2030 and National Energy Transition Roadmap.
The roadmap is anchored on four strategic pillars – market vibrancy, inclusivity, sustainability and regional opportunities – aimed at enhancing Malaysia’s competitiveness amid rapid global economic changes.
Faiz noted that while Malaysia’s capital market has demonstrated resilience and continues to play an important role in financing the economy, there remains significant room for improvement.
Over the past decade, he said, the equity market has expanded gradually but has lagged the pace of economic growth, with returns remaining relatively modest.
To address this, the masterplan will introduce initiatives such as a value-up programme aimed at improving long-term valuations and performance of public listed companies. The initiative seeks to encourage stronger value creation among companies while increasing market visibility for high-quality firms.
The roadmap will also prioritise increasing trading activity and improving access for companies seeking capital through the equity and bond markets.
Another key focus of CMP 2026-2030 is expanding access to the capital market to ensure broader participation among Malaysians.
Faiz said this includes improving retail investor access to capital market products, reassessing product suitability and costs, and enhancing financial literacy to support long-term wealth creation.
The masterplan will also strengthen the pipeline of market-ready companies by improving access to financing for mid-tier companies and micro, small and medium enterprises, with some eventually progressing towards public listings.
Beyond market participation, the capital market is also expected to play a key role in financing Malaysia’s sustainability transition.
According to Faiz, Malaysia’s energy transition from fossil fuels to renewable energy will require an estimated RM1.2 trillion in investments.The capital market will therefore focus on mobilising both private and concessional capital to fund climate mitigation, transition and adaptation initiatives.
“This includes supporting projects that may not traditionally be bankable but are essential for the country’s long-term resilience,” he said.
The masterplan also seeks to strengthen Malaysia’s position as a regional capital market hub.
Drawing on initiatives developed under the Asean Capital Markets Forum, the roadmap will encourage the development of exchange-traded funds with a stronger Asean focus and promote greater cross-border investment flows.
It will also aim to attract foreign companies to list and issue bonds or sukuk in Malaysia, while expanding the investor base with more long-term and institutional investors.
Faiz said Malaysia’s strong standing in Islamic finance will continue to underpin the development of the capital market.
The Islamic capital market remains a key competitive advantage for Malaysia, providing globally competitive investment offerings while embedding principles aligned with Maqasid al-Shariah.
At the same time, regulatory and governance excellence will remain central to the capital market’s development.
Faiz said the SC will focus on ensuring that regulations remain efficient and responsive, with fewer unnecessary rules, faster time-to-market for new products and reduced friction for market participants.
Investor protection will remain a priority to ensure fair treatment and maintain confidence in the market.
The new masterplan reflects the need to rethink the role of the capital market amid rapid technological change, digitalisation and evolving investor expectations, Faiz said. “This masterplan differs from the past in its scope and reassessment of where we are, given the speed of change brought by digitalisation, artificial intelligence and shifting investor expectations.”
To ensure the roadmap is implemented effectively, a Capital Market Masterplan Steering Committee comprising government officials and private sector representatives will be established to oversee its execution.
Faiz stressed that the success of the plan will depend on strong collaboration between regulators, industry participants and the government.
“This masterplan is a call to action which requires a whole-of-nation approach. With collective commitment, we can grow the capital market for the benefit of the country and future generations.”
