MALAYSIA’s capital market will continue to support public and private sector financing needs. Corporate fundraising is anticipated to remain highly favourable, driven by investments in business expansion, infrastructure, construction, utilities, and technology-related projects.

A key growth catalyst is the Capital Market Masterplan 2026-2030, launched by the Securities Commission in March 2026, which aims to accelerate capital formation, expand market vibrancy, and elevate the market’s global competitiveness.

Some of its key structural initiatives such as the MY Value Up Programme, public market segmentation framework reviews and the phased expansion of the FBM KLCI from 30 to 50 constituents starting December this year aims to broaden market representation and enhance listing quality.

Cross-border regulatory cooperation between Malaysia and Hong Kong regarding dual initial public offering (IPO) listings and mutual recognition of investment funds is set to deepen international connectivity and attract global capital.

Concurrently, net public sector bond issuances are expected to moderate as government fiscal consolidation progresses.

The Islamic Capital Market will also remain a pivotal pillar, propelled by sustained demand for syariah-compliant solutions and upcoming sustainable sukuk frameworks.

In the first seven months of 2026, fundraising activities in the domestic capital market exhibited vibrant momentum, supported by strong investor appetite and conducive domestic conditions.

Total gross private sector fundraising jumped by 58.9% to RM120.7bil as equity market fundraising expanded by 34.4% to RM5.8bil driven by 42 IPOs across diverse sectors. Corporate bond issuances surged by 60.4% to RM114.9bil, dominated by medium-term notes (96.9% of issuances) and heavily concentrated in financial services, construction and utilities.

Gross public sector fundraising via Malaysian Government Securities and Government Investment Issues rose by 8% year-on-year to RM110.6bil in the seven months of the year.

However, due to higher debt redemptions, net public sector funds raised moderated to RM56.7bil, bringing overall net capital market funds raised to RM105.2bil.