KUALA LUMPUR (March 9): With inclusivity in mind, the Securities Commission Malaysia (SC) plans to broaden access to capital market products and introduce regulated new asset classes as investor demand shifts, particularly among younger investors who are increasingly turning to digital platforms and alternative investments.

All Malaysians, including retail investors, should have access to an expanded range of products such as innovative products and new asset classes, to make their participation in the capital market more meaningful, the regulator said in the fourth Capital Market Masterplan 2026-2030 (CMP4).

“By enabling access to the same range of products available to high-net-worth and sophisticated clients, retail investors should, in theory, be able to enjoy similar advantages in enhancing returns and hedging risks [too],” it added.

Malaysia has in recent years seen a rapid expansion of alternative asset classes, which refer to investments outside traditional stocks, bonds and sukuk. These assets include private equity, private credit, hedge funds, real estate, commodities, infrastructure assets and digital assets such as cryptocurrencies.

Many investors allocate capital to such assets due to their low correlation with traditional markets and potential for higher returns, making them useful tools for portfolio diversification and risk management.

The shift also reflects broader changes in investor demographics as today’s investors are younger, more digitally connected and more values-driven, often relying on financial apps, online communities and social platforms to learn about investment opportunities.

Data cited by the regulator shows that 35% of millennials and Gen Z investors hold crypto assets, compared with only 8% among baby boomers. 

Unlike older investors, younger generations also often prioritise short-term financial goals alongside long-term wealth creation.

For instance, surveys cited in the report show that 46% of younger investors prioritise building emergency savings, while 39% focus on funding travel or lifestyle experiences, compared with only 15% prioritising large long-term investments.

It is worth noting that individual participation in the Malaysian capital market is estimated at 25%, with 60% of non-investors being below the age of 40 and 53% of non-investors fearing sophisticated scams.

The SC also plans to work with industry players to reduce investment barriers, including lowering minimum investment amounts for certain instruments such as retail bonds, while improving digital access to investment platforms.

“Other initiatives include collaborating with industry players to improve access by enhancing the affordability of investments through reducing the ticket size for bonds and enabling easier access to intermediation platforms providing digital solutions and AI tools,” the regulator said.

Reducing transaction friction for smaller investments will also help investors benefit more from long-term compounding returns, the SC added.

The SC also said it will adopt a revised investor protection paradigm that focuses on stronger oversight of intermediaries and improved business conduct standards.

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