Kuala lumpur: Bursa Malaysia Bhd and AmInvest have introduced the FTSE4Good Bursa Malaysia exchange-traded fund (ETF), marking a significant milestone as the country’s first sustainable and responsible investment (SRI)-qualified ETF.
According to BERNAMA News Agency, this collaboration signifies a joint dedication to product innovation, investor empowerment, and the promotion of sustainability within Malaysia’s capital market. Bursa Malaysia CEO Datuk Fad’l Mohamed highlighted the addition of the FTSE4Good Bursa Malaysia ETF to the range of ETFs available on the exchange, which spans domestic and regional equities, fixed income, commodities, and shariah-compliant assets, with a focus on environmental, social, and governance (ESG)-oriented companies.
Fad’l underscored the growing offerings in Malaysia’s marketplace aimed at providing investors with diverse choices and more opportunities to meet their financial objectives through various securities like ETFs and derivatives. He noted that there are currently 15 ETFs listed on Bursa, comprising seven shariah-compliant and eight conventional options, illustrating the breadth of investor choices.
The surge in retail account participation in ETFs is evident, with numbers reaching an all-time high of over 4,700 accounts in 2024-a 164 percent rise from 2023. By the end of October this year, this number had increased to over 6,100 accounts, indicating a sustained interest in this asset class.
The FTSE4Good Bursa Malaysia ETF is designed to track the FTSE4Good Bursa Malaysia Index, which features companies with strong ESG practices. Constituents of this index are selected from the FTSE Bursa Malaysia EMAS Index and are evaluated based on transparent ESG criteria. As of June 2025, there are 160 public-listed companies in the FTSE4Good Bursa Malaysia Index, with the average ESG rating of these constituents standing at 3.6 out of 5.
ETF trading has gained traction, with the average daily trading value reaching RM1.41 million by end-October 2025, reflecting a 53 percent increase from 2024. Bursa Malaysia’s securities market director Leong See Meng echoed this sentiment, noting the growing discernment among young investors regarding portfolio diversity and cost-effectiveness, and emphasized the importance of fostering a culture of saving and investing for retirement among the younger population.