KUALA LUMPUR (Nov 5): AmInvest and Bursa Malaysia Bhd (KL:BURSA), has launched the FTSE4Good Bursa Malaysia Exchange-Traded Fund (ETF) — the country’s first sustainable and responsible investment (SRI)-qualified ETF — designed for investors seeking exposure to companies with strong environmental, social and governance (ESG) practices.

The ETF tracks the FTSE4Good Bursa Malaysia Index, which is based on transparent ESG criteria and serves to support responsible investing, increase the visibility of ESG leaders, encourage greater corporate disclosure, and drive Malaysia’s transition towards a low-carbon economy.

AmFunds Management Bhd chief executive officer Kevin Wong said investor education and awareness are key to building traction in Malaysia’s ETF market, noting that local investors still prefer picking individual stocks.

“The nature of the Malaysian market and retail participation is that we like to pick stocks — we think we know our stocks and have inside information, so we may do better with those,” he said at a press conference on Wednesday. 

“It’s a process to help investors understand the benefits of ETFs, particularly their low-cost entry, diversification, and exposure to sustainable and ethical companies.”

Wong added that ETFs with an SRI overlay can enhance long-term returns, citing the FTSE4Good Bursa Malaysia Index, which gained 36.01% over the past five years, outperforming the FBM KLCI (25.97%) and the FTSE Bursa Malaysia Top 100 Index (26.39%).

“With continued education and awareness initiatives, we hope to see stronger retail participation in Malaysia’s ETF market,” Wong added. 

According to Wong, the ETF offers exposure to over 100 Malaysian companies across sectors such as financials, utilities, healthcare, and industrials. With a low minimum investment of 100 units (under RM200) and no entry fees, it provides a simple, cost-efficient way for investors to participate in Malaysia’s growing sustainable investment landscape. 

There are now 15 ETFs listed on Bursa Malaysia, comprising seven shariah-compliant ETFs and eight conventional ETFs. 

AmInvest is Malaysia’s largest ETF provider, managing about RM1.8 billion in ETF assets, which represents 75.4% of the market share. It also stands as the country’s leading fund manager in the SRI space, with RM4.3 billion in SRI-qualified assets under management (AUM) — accounting for roughly 28.2% of the market. To date, AmInvest manages nine SRI-qualified funds across various asset classes. 

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