Kuala lumpur: The Capital Market Masterplan (CMP) 2026-2030, launched on Monday, presents a strategic roadmap to deepen Malaysia's capital market and significantly expand its size over the long term, according to an economist.
According to BERNAMA News Agency, IPPFA Sdn Bhd director and country economist Mohd Sedek Jantan emphasized the importance of diversifying funding sources, developing alternative assets, and strengthening sustainable finance. These initiatives are anticipated to attract more capital into the domestic market, enhancing liquidity and fostering a more vibrant capital market ecosystem.
Mohd Sedek highlighted the potential impact of focusing on private credit as an alternative funding channel, especially for local businesses like small and medium enterprises (SMEs) that struggle with traditional bank financing. The CMP aims to position Malaysia as a regional investment hub, leveraging initiatives such as the Johor-Singapore Special Economic Zone (JS-SEZ) to attract global asset managers and boost cross-border investment flows.
Malaysia's foundation in Islamic finance is also set to be enhanced with more sophisticated products to compete on a global scale, attracting both Ultra-High-Net-Worth (UHNW) and international investors. Furthermore, reducing entry barriers for new capital market players, especially local firms, is expected to deepen the ecosystem and improve market competitiveness.
Mohd Sedek noted that the masterplan could improve initial public offering (IPO) pathways, making Malaysia a more efficient market for companies looking to go public. The CMP is expected to encourage asset managers to develop new investment strategies focused on local markets and SMEs, channeling institutional capital into domestic growth sectors.
The CMP represents a whole-of-nation effort aligned with national growth priorities, including the MADANI Economy framework, the 13th Malaysia Plan, the New Industrial Master Plan 2030, and the National Energy Transition Roadmap. Prime Minister Datuk Seri Anwar Ibrahim highlighted that the master plan aims to strengthen capital raising, reward business dynamism, embed sustainability as a value driver, and broaden meaningful participation across the economy.
Over the next five years, the capital market is projected to grow by RM1.5 trillion to RM2 trillion, reaching a size of RM5.8 trillion-RM6.3 trillion under the CMP 2026-2030.