KUALA LUMPUR (Nov 22): The Securities Commission Malaysia (SC) has released a consultation paper outlining substantial updates to the listing requirements for the Main Market and ACE Market, targeted to be implemented in early 2026.

This reform, the first overhaul since 2009, is designed to boost market competitiveness, improve the quality of listed companies, and re-establish clearer market segmentation across the Main Market and ACE Market, to be followed by the LEAP Market.

Among the key reforms proposed include raising the Main Market's profit-after-tax (PAT) threshold for the latest financial year from RM6 million to RM15 million, and increasing the minimum three-year aggregate PAT requirement to RM30 million.

The SC argues that most recent Main Market applicants already exceed current thresholds.

To support high-growth and new-economy companies, the SC also proposes relaxing requirements for positive operating cash flow. This change acknowledges that many technology firms and start-ups scale rapidly despite initial cash burn.

Market observers believe this relaxation could attract technology leaders and start-ups that have historically preferred overseas markets such as Nasdaq.

The review stems from concerns that many ACE Market-listed companies now increasingly meet Main Market criteria, which has blurred investor expectations.

To address this, the SC seeks to implement stronger sponsor oversight and a minimum three-year sponsorship period for all ACE Market listings. It also wants to introduce a mandatory transfer to the Main Market.

Overall, these reforms are intended to fundamentally modernise Malaysia’s listing framework.

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