Equities

The Malaysian stock exchange enjoys a diverse investor pool with strong support from domestic institutional investors, domestic retail investors and just under 25% investors reflect foreign institutional investors.  Total market capitalisation from the Malaysian stock exchange is at RM1.711 billion as of December 2019 with Shariah-compliant companies accounted for 77% of the total Malaysian market capitalisation according to Bursa Malaysia. A large number of Malaysian listed companies have established themselves regionally and globally though organic growth and strategic acquisitions. The top performing listed companies are from industries such as finance, telecommunications, healthcare, transportation and agriculture. Today, Bursa Malaysia is one of the largest bourse in ASEAN with over 900 listed companies. Listed products include equities, derivatives, Exchange Traded Funds (ETFs), Real Estate Investment Trusts (REITs) and Exchange Traded Bonds and Sukuk (ETBS).

The Malaysia stock exchange has three main markets:

01
Main Market is a prime market for larger companies with strong track record of operations and profitability and are able to demonstrate a minimum size measured by market capitalisation.

02
ACE Market is a sponsor-driven market designed for smaller companies that may have a shorter period of track record but record strong growth prospects.

03
Lastly, the LEAP Market which was introduced in 2017, is an adviser-driven market which enables emerging small and medium sized enterprises (SMEs) with greater fund raising access and visibility via public markets. Note however a significant difference in this market is that it is accessible only to sophisticated investors.

The combination of the three boards enable a wide spectrum of companies in terms of size and track record, raise funds through public equity market. Given Malaysia’s position as the second largest global exporter of palm oil. Bursa is naturally a hub for palm oil futures. In addition, capitalising on Malaysia’s leadership is Islamic Finance, Bursa is one of the notable exchanges to provide end-to-end Shariah Investing platform and the world’s first end to end Shariah compliant commodity trading platform. Recognising the importance of sustainable and responsible investments, Bursa introduced the FTSE4Good Index to enable investors to measure Malaysian companies’ performance relative to ESG standards.

Qualified investor refers to:

  • an individual whose total net personal assets exceed RM3 million or its equivalent in foreign currencies
  • a corporation with total net assets exceeding RM10 million or its equivalent in foreign currencies based on the last audited accounts
  • a unit trust scheme or prescribed investment scheme
  • a company registered as a trust company under the Trust Companies Act 1949 which has discretion in the investment of trust assets of a trust with total net assets exceeding RM10 million or its equivalent in foreign currencies
  • a corporation that is a public company under the Companies Act 1965 or under the laws of any other country, which has been allowed by the SC to be a trustee for the purposes of the CMSA and has discretion in the investment of trust assets of a trust with total net assets exceeding RM10 million or its equivalent in foreign currencies
  • a pension fund approved by the Director General of Inland Revenue under section 150 of the Income Tax Act 1967
  • a holder of a Capital Markets Services Licence carrying on the business of dealing in securities
  • any other fund manager
  • a person who acquires securities pursuant to an offer, as principal, if the aggregate consideration for the acquisition is not less than RM250,000 or its equivalent in foreign currencies for each acquisition
  • a licensed institution
  • an Islamic bank
  • an insurance company licensed under the Insurance Act 1996
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