KUALA LUMPUR (March 9): The Securities Commission Malaysia aims to grow the country’s capital market from RM4.3 trillion as at December 2025 to between RM5.8 trillion and RM6.3 trillion over the next five years, representing an expansion of RM1.5 trillion to RM2 trillion.  

At the launch of the Capital Market Masterplan 2026-2030, SC chairman Datuk Mohammad Faiz Azmi said the target represents a compound annual growth rate of between 6% and 8%, which is higher than Malaysia’s historical real gross domestic products (GDP) growth and reflects the commission’s belief that there remains room to continue improving and accelerate growth of the capital market.

The expansion will be driven by new listings, mobilisation of institutional capital, value-creation programmes and stronger corporate bond financing to support future economic growth, said Mohammad Faiz.

He said the Capital Market Masterplan will leverage on a strong platform, noting that approved foreign investments rose to RM207 billion last year, while foreign inflows into Malaysia’s bond market totalled RM25 billion. The FBM KLCI, meanwhile, climbed above the 1,700-point level recently, a level last seen in 2019.

Mohammad Faiz said the masterplan is anchored on four strategic pillars — market vibrancy, inclusivity, sustainability financing and regional opportunities — aimed at strengthening Malaysia’s capital market over the next five years.

On market vibrancy, he noted that Malaysia’s equity market has grown incrementally over the past decade but has lagged GDP growth, with returns remaining modest.

To address this, the SC aims to raise the long-term valuations and performance of listed companies through a “value-up” initiative, while also seeking to significantly increase trading activity and improve access for companies seeking capital

The inclusivity pillar will focus on improving retail investors’ access to capital market products and reassessing product suitability and costs to enhance returns, particularly for those retiring.

The commission also aims to strengthen the pipeline of market-ready companies by enhancing mid-tier companies’ and micro, small, medium enterprises' access to capital, with some expected to progress to listing.

On sustainability, Mohammad Faiz said Malaysia’s transition from fossil fuels to renewable energy will require an estimated RM1.2 trillion, adding that the SC's role will help mobilise private sector and concessional capital to fund these needs, particularly for projects that are not bankable.

The masterplan will also focus on regional opportunities with the SC to push more exchange-traded funds with a distinct Asean focus. This pillar also seeks to widen the investor base and attract new and stickier investors from friendly countries, while also encouraging foreign listings in Malaysia.

Mohammad Faiz added that the commission will emphasise regulatory and governance excellence through improving time-to-market and reducing friction for market players in getting things done, while ensuring investors are treated equally in disputes and compensated fairly.

To ensure effective delivery and accountability, a Capital Market Masterplan Steering Committee comprising key government officials and private sector representatives will be established to oversee implementation of the masterplan.

The Sc chairman said the latest masterplan differs from earlier iterations as it reflects the rapid pace of change brought by digitalisation, artificial intelligence and investor expectations.

“In our plan, there are many non-traditional capital market areas. However, we feel it has to be wide enough to address the rapidly changing needs of stakeholders and the nation as a whole,” he said.

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