Kuala lumpur: The Securities Commission Malaysia (SC) and the Securities and Futures Commission of Hong Kong (SFC) today signed a memorandum of understanding (MoU) to establish a practical framework to facilitate dual initial public offering (IPO) listings, including primary and secondary listings, mutual recognition of investment funds, and expanded cross-border investment opportunities.
According to BERNAMA News Agency, SC executive chairman Datuk Mohammad Faiz Azmi stated that the MoU will also provide investors in both jurisdictions with a broader range of investment opportunities. The Hong Kong Stock Exchange currently hosts more than 2,900 listed companies, exchange-traded funds (ETFs) and real estate investment trusts (REITs), while Bursa Malaysia offers more than 1,300 listed companies, ETFs and REITs. Beyond enhancing investor diversification and product offerings, the MoU is also expected to encourage greater foreign portfolio investment flows between the two capital markets.
Mohammad Faiz and SFC chief executive officer Julia Leung signed the MoU, with Finance Ministry Secretary-General Tan Sri Johan Mahmood Merican witnessing the event. The partnership aligns with the regional aspirations of the country's Capital Market Masterplan 2026-2030 to position Malaysia as a gateway to regional opportunities through stronger regional connectivity and cross-border investment flows. It also complements Hong Kong's role as an international financial centre and gateway to mainland China.
At the event, the Stock Exchange of Hong Kong Ltd (HKeX) added Bursa Malaysia as a Recognised Stock Exchange (RSE), building on an MoU signed between HKeX and Bursa Malaysia Bhd earlier this year. This recognition enables public companies with a primary listing on Bursa Malaysia's main market to apply for a secondary listing in Hong Kong.
Meanwhile, Johan Mahmood Merican noted that the ability to leverage Hong Kong's capital market will aid Malaysia in achieving its economic ambition, particularly as more high-technology, high-growth and high-value companies emerge. Malaysia recognises Hong Kong as a leading financial centre, with 30 Malaysian companies already listed there, furthering the country's economic reform under the Economy MADANI framework.
Johan also emphasised the need for deeper collaboration in terms of professional standards, suggesting that regulatory landscapes in both regions should leverage each other's strengths to ensure connectivity is comprehensive, not just financial but also at the regulatory and standard levels.
On other issues, Johan highlighted the government's response to the West Asia crisis, including the targeted diesel subsidy and increased financing for affected SMEs, as part of its commitment to economic support. Measures coordinated through the National Economic Action Council aim to sustain growth and maintain economic stability amid ongoing geopolitical uncertainties.
"The government is confident that the measures undertaken will continue to ensure the economy remains resilient," Johan remarked. "What is important is for the government to ensure supply security so that economic activities can continue without disruption," he added when asked about the oil price benchmark in the upcoming Budget 2027.