The Malaysian capital market displayed resilience in 2023, witnessing a growth of 5.6% to reach RM3.8 trillion, up from RM3.6 trillion in the previous year. This growth was primarily attributed to increases in both equity market capitalization and bonds and sukuk outstanding.
According to the Securities Commission Malaysia’s (SC) Annual Report 2023, the fund management industry also experienced robust growth, with total assets under management (AUM) reaching RM975.5 billion, a significant rise from RM906.5 billion in 2022, largely driven by positive valuation effects.
Dato’ Seri Dr. Awang Adek Hussin, Chairman of the SC, highlighted the significance of 2023 as the SC’s 30th anniversary, emphasizing the institution’s maturity and resilience amidst global economic challenges and varying monetary policies in major economies.
Key highlights from the Annual Report 2023 include:
- Fundraising in equity and corporate bond markets moderated to RM127.7 billion, with corporate bond and sukuk issuance at RM118.3 billion and secondary equity fundraising at RM5.8 billion;
- IPOs improved to RM3.6 billion, while alternative financing activities saw encouraging growth, supporting the funding needs of Micro, Small, and Medium Enterprises (MSMEs) with total funds raised amounting to RM3.8 billion;
- The Malaysian Islamic capital market (ICM) grew by 4.5% to RM2.4 trillion, with sukuk outstanding and Shariah-compliant equities experiencing notable growth;
- The SC secured criminal convictions, fines, disgorgements, and imposed administrative sanctions, amounting to RM19.5 million, showcasing its commitment to regulatory enforcement; and
- Efforts to enhance surveillance and supervision capabilities led to the development of PLC360, an AI-powered tool for robust oversight of Public Listed Companies (PLCs).
Additionally, the report highlighted initiatives to promote good corporate governance, improve gatekeeping functions, and protect investors against scams and unlicensed activities.
The SC’s Audit Oversight Board Annual Report 2023 and Capital Market Stability Review 2023 were also released, showcasing Malaysia’s leadership in audit quality and stable capital market operations.
Looking ahead, the SC aims to advance Malaysia’s capital market by refining the SRI Taxonomy, developing the National Sustainability Reporting Framework, and launching a five-year MSME Roadmap.
Furthermore, efforts will continue to enhance investor protection, combat money laundering and terrorism financing risks, and support capital market talent development through programs like investED.
