Malaysia is making a fresh bid to expand its capital market, launching a five-year plan to raise the value of its listed companies and encourage more investors to trade actively.
The country’s Capital Market Masterplan, unveiled last month, aims to expand its capital market, as measured by the market capitalization of listed equities, plus bonds outstanding, to MYR 5.8–6.3 trillion (USD 1.4–1.6 trillion) by 2030, an increase of 35–47% from MYR 4.3 trillion (USD 1.1 trillion) in 2025.
The Malaysian capital market’s expansion in recent years has been driven largely by bonds and sukuk (Islamic bonds), which dominated fundraising. The value of local companies listed in Malaysia was USD 449 billion in 2024, less than that of Southeast Asian peers Singapore (USD 637 billion) and Thailand (USD 531 billion), according to World Bank data.
The blueprint seeks to address problems such as weak equity valuations and thin trading volumes. Retail participation in Malaysia’s capital market is relatively low, with only about a quarter of the population investing directly. Younger investors, in particular, are increasingly sending money overseas, especially to exchange-traded funds (ETFs).
“We only have 13 ETFs [on the local market]. When you talk to the younger [people], they are all investing in ETFs abroad,” said Mohammad Faiz Azmi, chairman of Securities Commission Malaysia. The new master plan seeks to address this by offering new products and lowering barriers to entry, allowing fractional investments and offering more accessible financial instruments, such as low-cost, smaller-ticket ETFs.
