This article first appeared in The Edge Malaysia Weekly on October 5, 2026 - October 11, 2026

Stock market regulator and operator Bursa Malaysia Bhd (KL:BURSA) is a regular feature at The Edge Billion Ringgit Club Awards. This year, it again bagged the award for Highest return on equity (ROE) in the financial services (non-banks) category for companies below RM10 billion in market capitalisation.

For perspective, this marks the sixth time in a row that Bursa Malaysia has clinched this award. It looks likely that it will continue to dominate this category in the years to come.

Bursa Malaysia’s adjusted weighted ROE for the financial years 2023 (FY2023) to FY2025, ended Dec 31, works out to an industry leading 32.2%. The strong ROE was backed by its steady financial performance, with net profit rising from RM226.6 million in FY2022 to as much as RM310.1 million in FY2024 — levels last seen during the pandemic trading boom — before tapering off to RM250 million in FY2025.

The numbers reflected how well Bursa Malaysia’s strategic plan is shaping up, as they “reinforce its role in supporting capital formation, investment participation and risk management across economic cycles”, chairman Tan Sri Abdul Farid Alias said in the company’s latest annual report.

“[This] while ensuring that the exchange stays aligned with the broader national agenda of strengthening Malaysia’s competitiveness, deepening capital markets and supporting sustainable economic development.”

Over the years, the group has strengthened its securities market business while diversifying its derivatives market, both contributing to sustained trading activities that formed its core revenue contribution.

As a result of the efforts, 2025 was a commendable year across different metrics. Bursa Malaysia saw the highest number of listings in Asean, while active trading accounts touched a record high of 2.5 million, its data showed.

Further, efforts to grow its data and digital services revenue also bore fruit with contribution rising every other year to a record RM81.4 million in FY2025, representing a compound annual growth rate (CAGR) of 10.2% since FY2022. Overall, non-trading revenue contributed over 36% of operating revenue in FY2025, a sign that the diversification is going well.

In line with the better profits, Bursa Malaysia’s share price strengthened from RM5.57 on March 31, 2023, to RM8.51 on March 31, 2026, which works out to a shareholder returns CAGR of 15.2% over the three years.

As Bursa Malaysia celebrates its 50th year in 2026, the current year has also started out well for the regulator, with a 15% year on year rise in net profit to RM144.61 million in 1HFY2026, and a 19% jump in revenue to RM425.04 million.

“Malaysia’s favourable growth outlook for 2026, driven by sustained domestic demand and continued technology sector expansion, reinforces a conducive environment for capital formation and investment activity,” said CEO Datuk Fad’l Mohamed following the release of the group’s 2Q results.

“We are confident in the outlook for IPO (initial public offering) activity in the second half of the year, supported by a healthy pipeline and continued interest from companies seeking to raise growth capital through the public market.”

Indeed, Bursa Malaysia’s focus on increasing the number of public listed companies seems to be paying off. In the first six months of this year, there were 36 IPOs, including that of a business trust, which raised a total of RM5.38 billion. In the previous corresponding period, 32 IPOs raised some RM3.96 billion.

Bursa Malaysia is a generous dividend contributor, having paid out north of RM800 million for the three financial years in review, with the payout ratio consistently above 90% over the years. Following a dividend per share of 28 sen in FY2025, or a payout of more than RM226 million, research houses expect the dividend payout to increase in FY2026 and FY2027.

The key beneficiaries of the generous dividends are the Capital Market Development Fund, which has an 18.57% stake in Bursa Malaysia; Kumpulan Wang Persaraan (Diperbadankan), which holds 11.17% equity interest; and the Employees Provident Fund, which has a shareholding of 10.34%. It is noteworthy that almost all of Bursa Malaysia’s top 30 shareholders are institutional investors.

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