Kuala Lumpur:The Securities Commission Malaysia (SC) and Bursa Malaysia have introduced 13 significant measures in the first eight months of 2026 to improve the liquidity and efficiency of the Malaysian capital market.
According to BERNAMA News Agency, the Ministry of Finance (MoF) outlined these measures, which included the launch of the Bursa Malaysia Quality 50 Index (BMQ) and Bursa Malaysia Quality 50 Shariah Index (BMQ-S) on January 12. These indices aim to increase the visibility of financially resilient local companies.
The Economic Outlook 2027 report from the ministry highlighted that these new benchmarks identify 50 financially stable Main and ACE Market companies not included in the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI). The criteria are based on profitability, capital structure, and earnings quality, offering investors a standardized tool for identifying fundamentally strong companies.
In March 2026, the Capital Market Masterplan 2026-2030 (CMP) was launched, with a goal of expanding Malaysia's capital market to between RM5.8 trillion and RM6.3 trillion by 2030. The plan also focuses on strengthening Malaysia's global leadership in Islamic finance through innovations driven by Maqasid al-Shariah.
The MoF stated that the five-year strategic plan includes 56 initiatives aimed at enhancing market vibrancy, increasing capital access, broadening investment opportunities, accelerating sustainable and Islamic finance, and strengthening regional market connectivity.
In the same month, the SC introduced the Silver Economy Scheme and a profit-sharing incentive led by venture capital/private equity as part of the Malaysia Co-Investment Fund (MyCIF), to support the growth of micro, small, and medium enterprises (MSMEs).
Bursa Malaysia also signed a memorandum of understanding with Hong Kong Exchanges and Clearing Ltd (HKEX) on March 27, aiming to strengthen regional market connectivity. This collaboration led to the introduction of the HKEX Bursa Malaysia Large Cap Index.
In April, Bursa Malaysia reclassified equities trading data to increase transparency and provide detailed insights into retail and institutional fund flows.
A landmark measure was the issuance of Malaysia's first tokenised sukuk by Khazanah Nasional Bhd, worth RM100 million, in collaboration with the SC on April 28. This initiative lays the groundwork for future tokenised issuances, reinforcing Malaysia's leadership in Islamic capital market innovation.
Another initiative involved enhancements to the FBM KLCI and FTSE Bursa Malaysia Mid 70 Index (FBM70), announced by Bursa Malaysia and FTSE Russell on August 20. The FBM KLCI will expand from 30 to 50 constituents, increasing Main Market capitalisation coverage from approximately 60% to 70%, and will include sectors like technology, energy, and real estate investment trusts for the first time. The FBM70 will be reduced to 50 constituents and renamed the FTSE Bursa Malaysia Midcap Index.
These enhancements are set to be implemented in phases starting December 21 and are expected to be completed by June 21, 2027.