KUALA LUMPUR (April 22): The Securities Commission wants to increase Malaysian companies’ presence in the MSCI Index by helping them understand global investment trends, especially passive funds.
Malaysia currently makes up about 1.2% of the index, with 27 companies included.
SC chairman Datuk Mohammad Faiz Azmi said a key part of the My Value Up programme is helping companies already on the index understand global investment trends so they can improve their weighting by increasing free float or adjusting shareholding structures.
“We think we can probably grow our MSCI share by about 0.3 to 0.4 percentage points. It doesn’t seem much, but when you’re talking about trillions of dollars invested through MSCI, it matters,” Mohammad Faiz said.
Malaysia’s share in major global indices, especially the MSCI Emerging Market Index, has steadily fallen since 1988 as countries like China, Taiwan, India and South Korea grew faster and attracted more investment.
These indices are closely followed by fund managers and international investors, who adjust their portfolios to match them.
The “My Value Up” initiative, introduced under the Capital Market Masterplan 2026-2030, is aimed at improving value creation, strengthening financial performance and raising the visibility of Malaysian public listed companies, particularly among global investors.
The programme currently targets 88 companies on Bursa Malaysia, which collectively account for about 80% of the market capitalisation.
The programme will be rolled out in stages, starting with consultations and workshops in May for company feedback. A guidebook is expected in the first half of the year.
Participating companies must submit private reports on how they plan to improve performance and market position. By 2027, the programme will expand on a voluntary basis before any decision on making it mandatory.