KUALA LUMPUR (April 22): The Securities Commission Malaysia (SC) recorded its largest net operating deficit in more than a decade in 2025, weighed by weaker market activity.

The deficit of RM66.61 million compares with a net operating surplus of RM20.7 million in 2024, according to the SC’s Annual Report 2025 released on Wednesday. In 2023, the regulator posted a net operating deficit of RM56.46 million.

After accounting for taxes, the SC’s net operating deficit stood at RM69.32 million in 2025 versus a surplus of RM14 million in 2024.

The deficit underscores SC’s call last year for a revision of fee structures. The revision subsequently came into force on Jan 1, 2026, with a  three-year transitional period, during which concessionary rates on fees are granted, including a 50% reduction to variable annual fees, and  a 20% cut to transaction fees relating to products, fund-raising activities and other product-related fees.

The SC's revenue — largely derived from levies, fees and charges — fell 16.2% to RM251.75 million in 2025 from RM300.39 million in 2024.

Levies, the self-funded statutory body's main revenue source, declined 21.33% to RM164.82 million from RM209.52 million, while income from fees and charges dropped 13.17% to RM23.85 million from RM27.47 million. Other income, which includes recovery of investigation and proceeding costs, eased slightly to RM19.27 million from RM19.71 million. 

Meanwhile, losses from the remeasurement of defined benefit liabilities widened to RM16.55 million from RM16.11 million previously.

Overall, the SC posted a total comprehensive net loss of RM85.86 million for the financial year ended Dec 31, 2025, compared with a net loss of RM2.11 million in 2024.

The SC’s total expenditure increased 13.82% to RM318.36 million in 2025 from RM279.7 million in 2024.

Staff costs — its largest expense component — climbed 15.34% year-on-year to RM242.29 million, while administrative expenses rose 8.25% to RM57.62 million.

The SC said total value of disgorgement and civil penalties imposed by the courts fell 79.05% to RM2.07 million in 2025 – arising from five actions against five defendants – from RM9.87 million in 2024.

Total disgorgement declined 24.62% to RM9.08 million from RM12.04 million, while restitution increased to RM1.98 million from RM1.86 million.

For more SC 2025 Annual Report stories, click here.

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