KUALA LUMPUR: The Malaysian capital market achieved a historic milestone in 2024, reaching a record RM4.2 trillion in total market size, up from RM3.8 trillion in the previous year. This growth was driven by the expansion of stock market capitalisation, as well as increased bonds and sukuk issuances, according to the Securities Commission Malaysia (SC) in its Annual Report 2024 released.
The fund management industry also witnessed significant progress, with assets under management (AUM) surpassing RM1.1 trillion, crossing the RM1 trillion mark for the first time. This was largely attributed to the strong performance of global equity markets.
Robust Fundraising and IPO Activity
The capital market demonstrated its strength as a fundraising platform, with total fundraising increasing to RM138.9 billion in 2024, marking an 8.7% rise from RM127.7 billion in 2023. This included a record 55 initial public offerings (IPOs), which collectively raised RM7.42 billion, more than doubling the RM3.6 billion raised in 2023 from 32 IPOs.
SC Chairman Dato’ Mohammad Faiz Azmi highlighted the resilience of the market, emphasizing that strong bond and sukuk issuances played a key role in maintaining capital market stability and facilitating economic growth.
Looking ahead, the SC is formulating a new five-year capital market masterplan, focusing on enhancing financial security for retirees and promoting sustainable financing.
“Building on our market’s strengths, the SC remains committed to fostering an inclusive and vibrant capital market, while facilitating innovation and enhancing regulatory efficiency,” Dato’ Faiz stated.
Key Highlights from the SC Annual Report 2024
Market Growth & Fundraising
- Total fundraising from the equity and corporate bond market grew by 8.7% to RM138.9 billion.
- Record-breaking IPO activity with 55 IPOs raising RM7.42 billion.
- Bond & sukuk issuances totaled RM124.2 billion, including RM13.3 billion in sustainability-linked issuances (2023: RM8.7 billion).
- Islamic capital market (ICM) expanded by 8.5% to RM2.6 trillion, supported by a 7.1% rise in sukuk outstanding and a 3.6% increase in market capitalisation of Shariah-compliant equities.
- Alternative financing avenues for micro, small, and medium enterprises (MSMEs) gained momentum, with RM4.1 billion raised through peer-to-peer (P2P) financing, equity crowdfunding (ECF), and venture capital/private equity (VC/PE).
Investor Activity & Market Sentiment
- The average daily trading value surged to RM3.44 billion in 2024, compared to RM2.29 billion in 2023, reflecting improved investor sentiment.
- AUM in the fund management industry surpassed RM1 trillion, driven by a buoyant global equity market.
- The Private Retirement Scheme (PRS) saw net asset value growth of 18% year-on-year, reaching RM7.61 billion.
- Digital Investment Management (DIM) AUM reached RM1.9 billion, increasing more than 500 times since its inception in 2018.
- Digital asset exchange (DAX) trading volume grew 2.6 times, highlighting the rising interest in digital assets.
Key Market Development Initiatives
- Launched the Single Family Office (SFO) Incentive Scheme in Forest City to position Malaysia as a premier wealth management hub.
- Introduced the National Sustainability Reporting Framework (NSRF) to align corporate sustainability disclosures with global standards.
- Rolled out the Catalysing MSME and MTC Access to Capital Market 5-Year Roadmap (2024-2028) to facilitate SME financing.
- Streamlined IPO approval processes, reducing time-to-market from over six months to three months through the Focus Scope Assessment framework.
- Expanded the Regulatory Sandbox, allowing controlled testing of innovative financial products beyond existing regulatory frameworks.
Strengthening Market Integrity and Enforcement
The SC took decisive actions in 2024 to enhance market integrity and protect investors:
- One criminal conviction and RM9.87 million in civil penalties imposed.
- 125 administrative sanctions issued, including RM13.72 million in fines.
- Heightened surveillance against financial scams and unlicensed activities, leading to 273 entities added to the Investor Alert List, 153 website blocks, and 261 social media takedowns.
AOB Annual Report 2024: Strengthening Audit Oversight
The Audit Oversight Board (AOB) continued its efforts to uphold audit quality and corporate governance. Key measures included:
- Registration and recognition of 42 audit firms and 393 individual auditors.
- Inspections of 40 audit engagements across 13 firms to ensure compliance with auditing and ethical standards.
- Enforcement actions against two audit firms and four individual partners, resulting in RM275,000 in penalties.
- Capacity-building initiatives, including subsidizing 100 accountants for the GRI Professional Certification Programme.
Capital Market Stability Review 2024: Resilience Amid Global Uncertainty
Despite external economic pressures such as interest rate adjustments, foreign exchange fluctuations, and geopolitical risks, Malaysia’s capital market remained stable and resilient. Stress tests on investment funds affirmed the market’s ability to withstand redemption shocks even in extreme conditions.
Corporate earnings, particularly in the energy, property, and construction sectors, contributed to index performance and revenue growth for stockbroking firms. Meanwhile, cybersecurity remained a key focus, with enhanced measures introduced to safeguard against digital threats.
Looking Ahead: Key Initiatives for 2025
The SC has outlined several priorities for 2025:
- Strengthening Malaysia’s leadership in ASEAN capital markets, including finalizing the ACMF Action Plan 2026-2030.
- Developing the Capital Market Masterplan 4 (CMP4) to ensure long-term market competitiveness.
- Enhancing Malaysia’s Islamic finance leadership, including defining Maqasid al-Shariah-based indicators for the equity market.
- Preparing for two key assessments: The Financial Action Task Force (FATF) Mutual Evaluation and the Corporate Governance (CG) Watch 2025.
- Reviewing regulatory fees to create a more sustainable regulatory environment that supports market growth.
With a strong foundation in place, the Malaysian capital market is poised for continued growth, innovation, and resilience in the years ahead.
