SC, Bursa Malaysia Undertake 13 Measures To Boost Capital Market Liquidity, Efficiency - MoF

KUALA LUMPUR, Oct 9 (Bernama) -- Securities Commission Malaysia (SC) and Bursa Malaysia have taken 13 key measures in the first eight months of 2026 to enhance the liquidity and efficiency of Malaysia’s capital market.

The Ministry of Finance (MoF) said the measures included introducing the Bursa Malaysia Quality 50 Index (BMQ) and Bursa Malaysia Quality 50 Shariah Index (BMQ-S) on Jan 12, aimed at raising the visibility of resilient local enterprises.

“The new benchmarks identify 50 financially resilient Main and ACE Market companies outside the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) based on profitability, capital structure and earnings quality, providing investors with a standardised tool to identify fundamentally strong companies,” the ministry said in its Economic Outlook 2027 report released today.

In March 2026, the Capital Market Masterplan 2026-2030 (CMP) was launched to expand Malaysia’s capital market to between RM5.8 trillion and RM6.3 trillion by 2030 while strengthening the country’s global leadership in Islamic finance through Maqasid al-Shariah-driven innovations.

MoF said the five-year strategic masterplan outlined 56 strategic initiatives to enhance market vibrancy, broaden access to capital, increase investment opportunities, accelerate sustainable and Islamic finance and strengthen regional market connectivity.

During the same month, SC, as the administrator of the Malaysia Co-Investment Fund (MyCIF), launched the Silver Economy Scheme and a venture capital/private equity-led profit-sharing incentive to accelerate the growth of micro, small and medium enterprises (MSMEs).

Meanwhile, Bursa Malaysia signed a memorandum of understanding (MoU) with Hong Kong Exchanges and Clearing Ltd (HKEX) on March 27 to deepen regional market connectivity.

The partnership’s first outcome was introducing the HKEX Bursa Malaysia Large Cap Index.

In April, Bursa Malaysia implemented equities trading data reclassification to provide greater transparency and more granular insights into retail and institutional fund flows.

Another significant measure was Khazanah Nasional Bhd’s issuance of Malaysia’s first tokenised sukuk, worth RM100 million, in collaboration with the SC on April 28. 

“The tokenised initiative establishes the regulatory and market foundations for future tokenised issuances, therefore reinforcing Malaysia’s leadership in Islamic capital market innovation,” MoF said.

MoF said another initiative was enhancing the FBM KLCI and FTSE Bursa Malaysia Mid 70 Index (FBM70), which Bursa Malaysia and FTSE Russell announced on Aug 20.

The measure aimed to ensure Malaysia’s flagship benchmark remains representative, investible, and aligned with the needs of domestic and international investors.

“The FBM KLCI will expand from 30 to 50 constituents, increasing coverage of Main Market capitalisation from approximately 60 per cent to 70 per cent, which includes technology, energy and real estate investment trusts (REITs) for the first time, while moderating concentration in financial services.

“The FBM70 will be reduced to 50 constituents and renamed the FTSE Bursa Malaysia Midcap Index,” it said.

MoF added that the enhancements will be implemented in phases, starting on Dec 21 and expects to complete them by June 21, 2027.

-- BERNAMA