Malaysia stronger than a decade ago after fiscal reforms, says SC chairman

KUALA LUMPUR, Sept 14 — Malaysia has strengthened its position over the past decade due to significant fiscal measures implemented by the government, including subsidy reductions and a focus on economic advancement, according to Securities Commission Malaysia (SC) chairman Datuk Mohammad Faiz Azmi. The country's enhanced financial standing is also evident in the successful pricing of its US dollar Government Sukuk issuance, which has garnered stronger international acknowledgment.

During the recent Asean Investment Roadshow, Faiz highlighted that Malaysia boasts a robust and diversified capital market surpassing banking assets, a distinguished position in Islamic finance, robust regulatory and governance frameworks, and a steadfast dedication to enhancing cross-border connectivity. He emphasized that ongoing efforts to elevate Malaysia's capital market are underway under the Capital Market Masterplan 2026-2030 (CMP), which encompasses initiatives such as MY Value Up with Bursa Malaysia, targeting the nation's leading 88 publicly-listed corporations.

Recently, the SC signed a memorandum of understanding (MoU) with the Hong Kong Securities and Futures Commission to establish a framework for single-prospectus dual-listed initial public offerings and cross-listing of eligible Real Estate Investment Trusts (REITs) and Exchange-Traded Funds (ETFs). This initiative aims to broaden market access, offer more choices for issuers and investors, and bolster cross-border participation.

Faiz also noted that Asean regulators unanimously agreed on five key initiatives last year, including establishing uniform voluntary carbon market standards, implementing Asean Taxonomy Version 4, creating an ESG disclosure guide for SMEs, and developing a pilot project guide for blended finance in adaptation and resilience funding.

The ACMF Action Plan 2026-2030 consists of five strategic thrusts, 11 key priorities, and 18 initiatives focused on intensifying regional integration and elevating Asean's global standing. Among these, four initiatives specifically emphasize bolstering regional integration and global positioning. These include promoting Asean Diamonds, developing Asean indices, intensifying Islamic Finance with improved shariah screening tools, and facilitating intra-Asean activities, products, and connectivity.

Faiz stressed the importance of establishing a committee to promote Asean as an asset class, currently spearheaded by the Philippines and Singapore, as greater regional connectivity and international involvement are crucial for Asean's subsequent growth phase. He urged investors to reassess Asean as a strategic long-term investment destination.