The Securities Commission Malaysia (SC) has released its Annual Report 2025, Audit Oversight Board Annual Report 2025, and Capital Market Stability Review 2025.
Malaysia’s capital market grew 3.2% in 2025 to a record RM4.3 trillion, up from RM4.2 trillion in 2024, supported by stronger corporate bond issuances and higher fund management inflows.
The SC said the performance was achieved despite heightened global market volatility caused by trade tensions and geopolitical uncertainty.
Average daily trading value in the Malaysian equity market fell 19.7% to RM2.76 billion in 2025 from RM3.44 billion in 2024, reflecting cautious investor sentiment.
SC chairman Dato’ Mohammad Faiz Azmi said the Malaysian capital market remained resilient despite the challenging global environment.
He said the results reflect the market’s strong fundamentals, with the SC continuing to balance market development with integrity while providing a stable and innovative environment for stakeholders.
He added that while global uncertainty, geopolitics and technological disruption remain challenges, the Capital Market Masterplan 2026–2030 positions Malaysia to continue reforms, improve competitiveness, strengthen governance and enhance investor protection.
Key Highlights from 2025:
- Malaysia’s Islamic Capital Market grew 4.31% to RM2.7 trillion.
- Assets under management in the fund management industry rose 6.9% to a record RM1.14 trillion.
- Total funds raised through the capital market jumped 35.4% to RM187.7 billion.
- A record 60 IPOs were listed in 2025, surpassing 55 in 2024.
- Venture capital and private equity committed funds increased 21.66% to RM30.05 billion.
- Alternative financing channels raised RM5.7 billion for MSMEs and mid-tier companies.
Regional Competitiveness:
Malaysia strengthened its regional position in 2025 through:
- Recognition by the IFRS Foundation as one of the first ASEAN jurisdictions to adopt ISSB Standards under the National Sustainability Reporting Framework.
- Introduction of the Single-Family Office incentive framework, which has so far secured nine conditional approvals representing nearly RM670 million in indicative assets under management.
Investor Protection and Enforcement:
The SC said it continued to strengthen investor protection and enforcement in 2025.
- Malaysia achieved “Regular Follow-up” status under the Financial Action Task Force (FATF), the highest possible rating.
- The SC initiated 96 criminal charges against 16 individuals for securities law breaches.
- Courts secured nine convictions, with jail terms of up to three years and fines totalling RM13.1 million.
- Civil enforcement actions recovered RM11.14 million through disgorgement and penalties.
- A total of RM1.98 million was returned to 239 investors, with another RM8.63 million earmarked for 993 affected individuals.
- The SC also imposed 99 administrative sanctions, including RM8.28 million in penalties.
Market Stability:
The Capital Market Stability Review 2025 found that domestic markets remained fair and orderly, with no systemic risks identified.
The report said intermediaries remained well-capitalised, equity and derivatives markets functioned smoothly, no corporate bond defaults were recorded, and listed companies continued to show resilience.
Audit Oversight Board:
There are currently 41 audit firms and 397 individual auditors registered under the Audit Oversight Board (AOB).
In 2025, the AOB inspected 41 audit engagements involving 40 auditors from 14 audit firms.
The AOB also took enforcement action against two audit firms and six auditors for breaches of auditing standards, imposing penalties totalling RM423,750. It also suspended one audit firm and two partners for serious audit quality issues.
SC Priorities for 2026:
The SC said future initiatives under the Capital Market Masterplan 2026–2030 will focus on market vibrancy, inclusivity, sustainability and regional opportunities.
Upcoming measures include:
- Revised Malaysian Code on Corporate Governance 2026
- Enhanced Main Market and ACE Market value proposition
- Improved LEAP Market framework
- Stronger Digital Asset Exchange framework
- Greater tokenisation of securities
The SC has also launched the MY Value Up Programme, a private debt framework for MSMEs, and expanded ETF rules to allow Digital Asset ETFs.
