KUALA LUMPUR (March 9): The Securities Commission Malaysia (SC) aims to grow foreign underlying assets in Malaysia’s capital market to between RM100 billion and RM110 billion by 2030 as it positions the country as a regional funding gateway that promotes win-win relationships with regional capital market intermediaries.

The target will be supported by initiatives to facilitate capital raising for homegrown regional champions, issuers and intermediaries to finance their expansion across the region, the SC said in the fourth Capital Market Masterplan (CMP4), which spans 2026-2030.

Foreign underlying assets include listed companies with foreign parents, as well as products linked to foreign assets, issuers or currencies.

“The Malaysian capital market will evolve into a product hub with niches in Asean-themed underlying, including shariah-compliant exchange-traded funds (ETFs), ethical and sustainable funds, as well as infrastructure funds,” the SC said.

To support this, the regulator will work with other Asean regulators to harmonise regulatory frameworks, standards and processes, with the aim of reducing transaction frictions and improving payment and settlement efficiencies.

Efforts to strengthen cross-border connectivity are already underway through the Asean Capital Markets Forum Action Plan 2026-2030, which aims to deepen regional capital market integration and position Asean as an attractive destination for capital and investment.

Among the initiatives is the development of regional products and platforms, including “Asean Diamonds”, a cornerstone initiative aimed at supporting Asean firms in expanding their regional footprint. The plan also includes facilitating Asean indices and developing a regional shariah screening tool.

“Collectively, these initiatives aim to attract greater regional and global investment, expand intra-Asean capital market activity and strengthen the region’s long-term financial resilience,” the SC added.

Malaysian companies are well positioned for regional expansion, supported by the depth and resilience of the domestic capital market. In this regard, the SC said it will facilitate fundraising for regional ventures, business acquisitions and strategic projects, particularly in sectors such as halal, ethical and sustainable industries.

The regulator added that efforts are underway to increase the number of Malaysian companies recognised under the Malaysian Asean Business Entity (MyABE) status. The initiative aims to support their expansion beyond domestic borders and accelerate their transformation into multinational enterprises by broadening access to capital market funding.

“Malaysia offers a compelling proposition with its Islamic capital market size of RM2.7 trillion and globally-recognised sukuk expertise. Apart from unparalleled access to shariah-compliant and ethical opportunities, Malaysia also plans to develop niches in sustainable, ethical and infrastructure finance. These attractions are underpinned by international acknowledgement of Malaysia’s regulatory strengths in relation to its governance and investor protection standards,” the SC said in the CMP4.

“Malaysia is operating from a position of strength as it has a relatively mature capital market ecosystem with relatively sophisticated intermediaries, large government-linked and private institutional investors and excellent relationships with regional and global regulators,” the SC added, noting the country’s strategic geographical location which “provides natural connectivity across the regional growth corridors in Asia-Pacific, South Asia, Eurasia and the Middle East”.

“As a prominent member of Asean and given its relationships with many Asian countries, Malaysia is well positioned to seek opportunities to transform the thriving economic relationships into cross-border capital and deal flows,” the CMP4 read, noting that Asean is projected to be the world’s fourth-largest economy by 2040.

The SC said it will also collaborate with Bursa Malaysia and intermediaries to roll out targeted retail education and promotional campaigns to raise awareness on foreign listings.

Establishing Malaysia as an attractive fundraising destination is expected to enhance market vibrancy and support the bundling of products into regional themes, creating opportunities for intermediaries, underwriters, accountants and legal advisers to innovate, structure and execute regional deals.

“While Malaysia already has the experience, expertise and networks to originate regional products, an increase in regional fundraising activities could attract international talent to collaborate or relocate here,” the SC said.

Bursa may also evolve its services and processes to facilitate trading in a broader range of regional assets while enhancing connectivity to retail and foreign investors across the region, the SC added.

Click here for all you need to know about the Capital Market Masterplan 2026-2030.