Kuala Lumpur, 23 April 2026 – Malaysia’s capital market continues to demonstrate resilience and steady growth, underpinned by strong fundamentals and expanding investment activity despite a volatile global environment.
Securities Commission Malaysia chairman Datuk Mohammad Faiz Azmi highlighted that the country’s capital market grew 3.2% year-on-year to RM4.3 trillion in 2025, driven largely by expansion in the bond and sukuk segments.
Strong Growth in Bonds, Sukuk and Fund Management
The fixed income market has emerged as a key pillar of growth.
The bond and sukuk market continued to expand, benefiting from demand for stable, income-generating assets in a lower interest rate environment. At the same time, the fund management industry saw assets under management rise 6.9% to a record RM1.14 trillion, reflecting increased investor participation and higher asset valuations.
This growth reinforces Malaysia’s position as a regional hub for both conventional and Islamic capital markets.
IPO Pipeline and Market Expansion Targets
Looking ahead, the SC is targeting significant expansion of the capital market over the next five years.
The regulator aims to grow the market from RM4.3 trillion to over RM6 trillion, representing a compound annual growth rate of between 6% and 8%.
This growth is expected to be driven by:
- Larger initial public offerings (IPOs)
- Increased corporate fundraising activity
- Continued development of capital market instruments
The SC is working closely with Bursa Malaysia to attract major listings, with potential large-scale IPOs, including energy-related firms, under consideration.
Resilience Despite Global Volatility
The strong performance comes against a backdrop of heightened global uncertainty, including geopolitical tensions and technological disruptions.
Despite these challenges, Malaysia’s capital market has continued to fulfil its core role in facilitating capital raising and supporting economic activity.
The regulator emphasised that stability in such conditions is a positive outcome, reflecting the strength of the underlying financial ecosystem.
Reform Agenda Under Capital Market Masterplan
The forward-looking Capital Market Masterplan 2026–2030 is expected to play a central role in sustaining momentum.
The plan focuses on enhancing competitiveness, strengthening governance and investor protection, and building a more inclusive and future-ready market framework.
This includes initiatives to deepen market liquidity, expand investor access and promote innovation across both conventional and Islamic finance segments.
The Ledger Asia Insights
Malaysia’s capital market resilience highlights a broader structural strength, where diversification and regulatory stability are cushioning global shocks.
For Asian investors, three key implications emerge:
1. Fixed Income Driving Stability
Growth in bonds and sukuk is providing a stabilising anchor amid equity market volatility.
2. IPO Pipeline Signals Confidence
Upcoming large-scale listings indicate sustained corporate confidence and capital market depth.
3. Long-Term Expansion Remains Intact
The RM6 trillion target reflects strong policy commitment to scaling Malaysia’s capital market as a regional financial hub.
Malaysia’s capital market is not just holding steady, it is evolving, where resilience, reform and expansion are converging to shape the next phase of growth.
