This article first appeared in The Edge Malaysia Weekly on July 27, 2026 - August 2, 2026

In a move to strengthen capital market connectivity, Malaysia and Hong Kong have established a framework to facilitate dual listings, making it easier for companies to raise capital in both markets.

From September, companies seeking simultaneous primary and secondary listings on Bursa Malaysia and Hong Kong Stock Exchange (HKEX) will be allowed to submit a single set of documents, including a common prospectus, to support applications in both jurisdictions.

The initiative follows Bursa Malaysia’s designation as a Recognised Stock Exchange (RSE) by Hong Kong — a significant milestone that enables companies listed on Bursa Malaysia to pursue a secondary listing on HKEX under a more streamlined regulatory framework.

With this, Bursa Malaysia becomes the fourth exchange in Southeast Asia to attain the RSE status, joining the Indonesia Stock Exchange, Singapore Exchange and Stock Exchange of Thailand. Globally, it is the 21st exchange in 19 economies to receive this recognition.

Simplified listing procedures alone may not be enough to spur a wave of dual listings, though. Malaysian firms will still need to demonstrate compelling investment propositions and strategic advantages that differentiate them from the more than 2,900 companies already listed in Hong Kong.

Without sufficient scale, liquidity or an attractive growth story, the benefits of a secondary listing may be limited.

Besides, there is already a long history of Malaysian-linked companies listed in Hong Kong including Guoco Group Ltd, Public Financial Holdings Ltd, Lam Soon (HK) Ltd, Parkson Retail Group Ltd, Tan Chong International Ltd and Media Chinese International Ltd.

At the same time, some companies have moved in the opposite direction. Last year, Pentamaster Corp Bhd (KL:PENTA) privatised its Hong Kong-listed subsidiary, Pentamaster International Ltd. While there were likely multiple considerations behind the move, a listing is only worthwhile if it delivers tangible benefits, including stronger trading liquidity, a broader investor base and more compelling valuations.

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