The Securities Commission Malaysia (SC) has released a consultation paper seeking industry feedback on a series of proposed enhancements aimed at strengthening the attractiveness and effectiveness of Malaysia’s public equity markets.
The consultation focuses on potential updates to the listing frameworks for both the Main Market and the ACE Market. According to the SC, the proposals are designed to make it easier for companies to access the capital market while ensuring that each market segment remains clearly defined and supported by regulations that are appropriate to its purpose.
Key areas highlighted in the consultation paper include:
• Enhancing listing pathways for the Main Market
This includes refining the profit test criteria and strengthening the infrastructure project corporation (IPC) test to better accommodate companies with different business models and growth trajectories.
• Introducing flexibility for operating cash flow requirements
The SC is considering adjustments to the requirement for positive operating cash flow for Main Market applicants, allowing more companies with strong prospects, but uneven cash flow patterns, to qualify for listing.
• Reinforcing the ACE Market as a launchpad for smaller companies
Proposals include aligning certain ACE Market listing requirements with its existing sponsor-driven structure, ensuring the market continues to serve as an effective stepping stone for small and medium-sized enterprises (SMEs) to eventually transition to the Main Market.
The SC has encouraged participation from investors, listed companies, advisors, industry groups, and the broader public to help ensure that the review process is inclusive and reflects the needs of Malaysia’s capital market ecosystem.
The regulator aims to finalise the reforms and implement the updated listing frameworks for both markets in the first half of 2026.
