MALAYSIA’S capital market grew 3.2% to an all-time high of RM4.3 tril (2024: RM4.2 tril), underpinned by higher corporate bond issuances and a rise in fund management inflows.
Nevertheless, the average daily trading value in the Malaysian equity market was RM2.76 bil in 2025, down 19.7% from RM3.44 billion in 2024 due to cautious investor sentiment, according to Securities Commission Malaysia (SC)
In the words of SC chairman Datuk Mohammad Faiz Azmi, the Malaysian capital market still showed its resilience despite a volatile environment globally.
“The 2025 results reflect the fundamental strength of the Malaysian capital market,” he pointed out in conjunction with the SC’s release of its Annual Report 2025 (AR2025), the Audit Oversight Board Annual Report 2025 and Capital Market Stability Review 2025 (CMSR).
“By balancing market development while safeguarding market integrity, the SC continues to provide a stable, innovative environment for all stakeholders.”
Moving forward, the SC is cognisant of market turbulence amid the global uncertainties, geopolitics and technological disruption.
“However, with the forward-looking Capital Market Masterplan 2026-2030 in place, the SC is optimistic that the Malaysian capital market will stay on course in delivering reforms, boosting market competitiveness and inclusiveness, strengthening governance frameworks and enhancing investor protection,” added Faiz.
Below are some key Highlights from the SC Annual Report 2025:
- The Islamic Capital Market (ICM) remained strong, growing by 4.31% to reach RM2.7 tril in 2025.
- The fund management industry’s assets under management rose by 6.9% to a record high of RM1.14 tril on the back of better returns for fixed-income securities and higher valuations.
- Total funds raised via the capital market jumped 35.4% to RM187.7 bil.
- A record 60 IPOs (initial public offerings) were listed in 2025, surpassing the 55 recorded in the previous year.
- Total committed funds in the venture capital and private equity industry edged up by 21.66% to RM30.05 bil.
- Alternative financing avenues continued to facilitate financing to MSMEs (micro, small medium enterprises) and MTCs (mid-tier companies) with RM5.7 bil raised in 2025.
“In 2025, Malaysia’s regional value proposition was strengthened via the country’s recognition by IFRS Foundation as one of the first ASEAN jurisdictions to adopt the ISSB Standards with limited transition pursuant to the National Sustainability Reporting Framework (NSRF),” noted the SC.
“The introduction of the Single-Family Office (SFO) incentive framework has generated further interest among regional family offices. To date, nine conditional approvals were granted, representing nearly RM670 mil in indicative AUM (assets under management).” – April 22, 2026
