This article first appeared in Wealth, The Edge Malaysia Weekly on December 29, 2025 - January 4, 2026

With all eyes on Malaysia’s transition to a super-aged nation in the coming decades, we may have forgotten that a large number of younger people are joining the workforce every year, rapidly changing market dynamics and the future of exchanges, brokers and providers of financial services.

Generation Z — those born between 1997 (28 years old) and 2012 (13 years old) — alone makes up 23% of the population, according to the study titled “Gen Z Decoded” by Visa Inc, published in September.

Stephanie Tan Kar Mun, director of group commercial and market coverage at Bursa Malaysia, defines younger investors as those between 18 and 35 years old, who account for about 20% (490,000 out of 2.4 million) of the total active retail investor base in the securities market.

In an email interview with Wealth, she says the local stock market remains largely supported by more mature investors, but the participation of younger investors is increasing and they are becoming more sophisticated.

“The younger group generally displays a higher risk appetite and trades more dynamically. Many are involved in equities, showing strong interest in large- and mid-cap stocks, while also exploring small-cap opportunities that offer faster capital movement. They are digital first, responsive to market developments and tend to leverage online platforms and real-time analytics to make informed decisions,” Tan says.

“When it comes to choosing an investment platform, their priorities are clear: which app gives me the best user experience, the best tools/features and the best promotions/offers?”

Bursa experienced a surge in new account opening during the height of the Covid-19 pandemic, but the growth momentum today is fundamentally different, anchored in structural drives instead of temporary external shocks, says Tan.

“In the past five years since 2020, younger investors have accounted for more than 50% of new retail accounts annually, underscoring their investment appetite and long-term potential. The under 35-year-old group contributes about 11% of total retail trading value year to date, as at November.

“What matters most is their growing participation and more informed investing behaviour, signalling a growing pipeline of future long-term investors for the Malaysian market,” she says.

Key drivers that have underpinned the rise of younger investors include the entry of new brokers into the market, which have expanded distribution channels and created competitive offerings. They attract the younger ones with richer functionalities and seamless online trading experiences.

Existing brokers have also played a key role through the enhancement of their digital offerings, thereby meeting younger investors’ rising expectations. “Bursa Malaysia helped strengthen the industry’s digital backbone by rolling out the exchange’s API Gateway services, offering real-time services for account opening, updates and reactivation. This empowers brokers to build more modern and intuitive trading apps to better suit the needs of investors, especially the younger ones.

“Additional features are on the way to further support brokers’ operational efficiency and make the account management experience even smoother,” says Tan.

Targeted and data-­driven marketing campaigns aimed at younger investors have also been conducted across the industry, with a strong focus on digital channels to reach untapped investor segments.

For instance, Bursa introduced the Shares2U programme on May 22, a securities transfer scheme that enables brokers to reward their clients with Bursa-listed shares as campaign incentives.

To date, four brokers have leveraged Shares2U for related campaigns, and Bursa hopes to further support the growth in retail participation, particularly among younger investors.

Tan says Bursa is transforming into a multi-asset exchange beyond traditional equities and derivatives, which will allow it to offer more products to meet the needs of younger investors.

One example is Bursa Gold Dinar (BGD), its shariah-compliant digital gold investment platform launched in 2024. In less than two years, BGD has gained strong traction among the under-35 cohort who now make up more than half of its growing investor base. They are showing even stronger interest this year.

Overall, Tan says the bourse’s strategy to attract younger investors is centred on fostering financial literacy and cultivating durable investing habits. The earlier young Malaysians start investing, the more they can benefit from the compounding effect and diversification.

Based on the bourse’s findings in its 2023 Retail Survey, young Malaysians face two major barriers to investing — a lack of funds to invest and low financial literacy.

Among those surveyed, Tan says 36% cited limited capital as a key barrier, alongside risk concerns and limited investment knowledge, with 40% of the 3,027 respondents claiming to have little or no understanding of stock investment.

To overcome the concern over limited capital, Tan says the bourse has strategically focused on diversifying its product offerings, which is also in line with its broader direction of becoming a multi-asset exchange.

For instance, Bursa launched the e-Trade feature within the Touch ’n Go e-wallet with Affin Hwang Investment Bank, paired with educational resources from MyBURSA, to enhance the accessibility of the securities market.

In the first quarter of 2026, Bursa also plans to introduce a new derivatives product, the Mini FTSE Bursa Malaysia KLCI Futures (FKLM) contract, targeting retail investors to provide them with exposure to the FBM KLCI. FKLM will have a low entry cost.

For those looking for products that are non-equities or non-derivatives, Bursa offers products that require a small initial capital to start with. They are BGD and BR Capital.

“BGD allows gold investment from just RM10 via a fully digital platform, catering to the younger demographic. This helps build their foundational investing confidence before transitioning to more sophisticated instruments. They can buy and sell gold directly via an app without the need to go through a broker or open a CDS (Central Depository System) account.

“BR Capital is a debt fundraising platform that requires a minimum investment of as little as RM100. It has transparent fees and offers the choice between ESG (environmental, social and governance) and shariah-compliant projects,” Tan says.

She stresses that Bursa serves investors of all ages, including those who are younger and keen to invest in multiple asset classes beyond stocks.

“Investing today looks very different. It’s not just about stocks anymore. The market is more diverse, and so are the people in it. Investors of all ages now show greater interest in managing their wealth through multiple asset classes. And this is where Bursa Malaysia’s priority lies: to provide a range of investment solutions that meet the needs of different investor profiles, from first-time participants to active traders and high-net-worth clients,” says Tan.

“Consistent with our vision of becoming a multi-asset exchange, we continue to explore a wide spectrum of products and asset classes that can meet the needs of different investor segments, whether young or experienced.

“We are cognisant that our products need to be resilient and well understood by investors. Hence, we are working closely with all stakeholders before launching new asset classes, in order to ensure investors fully understand the risk and features of these products,” she says.

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