KUALA LUMPUR (March 9): Malaysia’s capital market could potentially scale up to RM6.3 trillion by 2030 and RM20 trillion by 2045, if continued reform initiatives broaden market participation, lift market vibrancy and unlock value across asset classes in support of economic transformation.
The Securities Commission of Malaysia (SC) expects the capital market to reach RM5.8 trillion by 2030, driven by organic growth and the implementation of initiatives in the fourth Capital Market Masterplan 2026-2030 (CMP4).
“The SC envisions that the market size could potentially reach up to RM6.3 trillion by 2030, reflecting the positive impact of coordinated efforts, including targeted tax and investment incentives, progressive GLIC [government-linked investment companies] transformation, capital account flexibilities and greater policy clarity in areas such as sustainability, digitalisation and artificial intelligence,” the CMP4 read.
The projected growth for 2030 represents a 5.5% to 7% compound annual growth rate (CAGR) over six years from RM4.2 trillion in 2024 (and RM3.8 trillion in 2023), as reforms deepen the breadth and activity of the capital market spanning equities, bonds and sukuk.
The masterplan said vibrancy should not be viewed narrowly in terms of market capitalisation and trading velocity alone, but as part of a broader agenda that translates into “more products, more players and more activities” within the capital market ecosystem.
“The Malaysian capital market should be a dynamic hub of innovation, scaling ambition into sustainable expansion. It should operate on next-generation technology, sophistication and connectivity,” it said, noting that the attainment of CMP4 aspirations “will be contingent upon strong collaboration and coordination across key industry stakeholders, supported by fundamental structural reforms and facilitative measures across ministries and agencies”.
By 2030, the CMP4 also envisions Malaysia reinforcing its leadership in the Islamic capital market “and cementing its position as a trusted jurisdiction with a regulatory framework that upholds international regulatory standards, investor confidence and market integrity”.
Beyond 2030, the SC said the capital market “will continue to be recalibrated to chart the most optimal pathway towards achieving the ambitious targets” of RM13.8 trillion-RM20 trillion in market size by 2045.
“This may necessitate further reforms to laws and regulations, infrastructure development and expansion of the ecosystem to include new players, products and services,” the SC said.
“Capital market participants, including stockbroking companies, fund management firms, advisory firms, as well as remisiers, financial planners and unit trust consultants, will need to reinvent and reposition their business models. As structural disruptions redefine their raison d’etre [purpose of existence], a shift in mindset is critical to ensure the industry remains resilient and future-ready,” it added.
The SC also said it is inevitable for the Malaysian capital market to venture into new territories such as private credit and alternative assets as this would inject greater vibrancy, which would add momentum to future growth.
“The initial phase of development will be gradual as activities largely need to be preceded by the establishment of legal frameworks for these unregulated activities. The focus would be to intensify collaboration with market participants and other regulators. While regulatory frameworks are still being reviewed, the SC would bridge the gap by refining its ‘sandbox’ to permit pilots and enable experimentation,” it said.
Click here for all you need to know about the Capital Market Masterplan 2026-2030.