KUALA LUMPUR (March 9): The Securities Commission Malaysia (SC) aims to broaden participation in the corporate bond and sukuk market, recognising that not all potential issuers are equally equipped to access bond and sukuk financing.

The corporate bond and sukuk market reached RM950 billion, accounting for more than 40% of Malaysia’s total bond and sukuk market, which exceeded RM2.2 trillion in 2025.

The bond and sukuk market has reached a stage of maturity where the focus should be on facilitation rather than pure regulation, the SC said in the fourth Capital Market Masterplan 2026-2030 (CMP4) launched on Monday.

As part of this effort, the SC plans to support high-potential issuers in navigating the complexities of bond and sukuk issuance. This includes clarifying structural considerations, documentation requirements, execution pathways and engagement with investors and market intermediaries, with the objective of reducing friction and improving transaction preparedness.

In addition, the SC intends to strengthen the role of trustees as a key pillar of investor protection and governance, particularly as issuance structures and issuer profiles continue to diversify.

The regulator also highlighted deeper collaboration among issuers, intermediaries, trustees and investors is expected to enhance market discipline and strengthen confidence.

“Collectively, these efforts are intended to broaden participation in the corporate bond and sukuk market beyond traditional large corporates, diversify the credit rating spectrum and reinforce investor trust.

“Enhanced facilitation and ecosystem alignment will support sustainable market growth, improve execution outcomes and strengthen the role of corporate bonds and sukuk as a core driver of Malaysia’s capital market vibrancy,” it explained.

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