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THE Securities Commission announced today that Malaysia’s capital market surged to an unprecedented RM4.2 trillion in 2024, marking a significant increase from RM3.8 trillion in 2023.
This growth was driven by a strong performance in both the stock market and the bond and sukuk sectors, according to the Securities Commission Malaysia (SC) Annual Report 2024, released today.
The growth in 2024 underscores its resilience and adaptability in a rapidly changing global economic landscape.
Notably, the assets under management (AUM) in the fund management sector also reached a record high, crossing the RM1 trillion threshold to hit RM1.1 trillion, up from RM975.5 billion in 2023. This was largely propelled by positive global equity market trends.
The SC highlighted that the Malaysian market has remained resilient, demonstrating its capacity to facilitate capital formation and support the national economy, even amid the challenges presented by global economic volatility.
IPO and Fund-Raising Activity Soar in 2024
Fund-raising activities experienced notable growth, climbing 8.7% to RM138.9 billion in 2024, up from RM127.7 billion the previous year. The stock market saw a record 55 Initial Public Offerings (IPOs), raising a combined RM7.42 billion, a dramatic increase from the 32 IPOs that raised RM3.6 billion in 2023.
SC Chairman, Dato’ Mohammad Faiz Azmi, on the market’s performance, said, “The sustained growth, supported by robust bond and sukuk issuances, demonstrates that the capital market remains resilient. It continues to play a vital role in facilitating capital formation, which in turn supports Malaysia's broader economic agenda.”
The Islamic Capital Market (ICM) saw particularly strong performance, growing by 8.5% to reach RM2.6 trillion, largely due to a 7.1% increase in sukuk issuance and a 3.6% rise in the market capitalisation of Shariah-compliant equities.
In addition, alternative financing for Malaysia’s micro, small, and medium enterprises (MSMEs) also saw a strong showing, with RM4.1 billion raised through peer-to-peer (P2P) financing, equity crowdfunding (ECF), and venture capital/private equity (VC/PE) platforms. The breakdown included RM1.5 billion in VC/PE, RM97.6 million in ECF, and RM2.5 billion in P2P.
Investor sentiment remained strong, reflected in a rise in trading activity. The average daily trading value in 2024 surged to RM3.44 billion, up from RM2.29 billion in the previous year.
Additionally, the fund management industry saw significant growth, with AUM surpassing RM1 trillion, buoyed by global market performance.
Private Retirement Scheme (PRS) assets grew 18% year-on-year to RM7.61 billion, and Digital Investment Management (DIM) AUM grew over 500 times since its inception in 2018, reaching RM1.9 billion.
The Digital Asset Exchanges (DAX) also witnessed increased investor interest, with the average daily trading value climbing 2.6 times in 2024.
The SC has introduced several key initiatives to further bolster the capital market. This includes the launch of the National Sustainability Reporting Framework (NSRF), which aligns corporate practices with global sustainability standards.
Further initiatives also included the development of a roadmap to enhance MSMEs’ access to the capital market, and a revamped IPO approval process to shorten time-to-market for new listings.
Strengthening Market Integrity and Oversight
The SC also reinforced its commitment to market integrity through robust enforcement and regulatory measures. In 2024, a criminal conviction was handed down, alongside civil penalties totalling RM9.87 million, and 125 administrative sanctions, including fines amounting to RM13.72 million.
To combat fraud, scams, and unlicensed activities, the SC received 4,859 complaints, a 49% increase from the previous year.
Proactive surveillance resulted in the identification of 796 potentially illegal URLs, with interventions leading to 153 websites and 261 social media pages being blocked.
The Audit Oversight Board (AOB) also strengthened its audit standards, inspecting 40 audit engagements and taking enforcement actions against audit firms and individual auditors for breaching standards. These efforts aim to enhance corporate governance in public-listed companies (PLCs) and increase investor confidence in the reliability of audited financial statements.
Looking Ahead: Key Initiatives for 2025 and Beyond
Mohammad Faiz outlined a forward-looking agenda for 2025, which includes the development of the Capital Market Masterplan 4 (CMP4). This strategic roadmap aims to ensure that Malaysia’s capital market remains competitive and resilient in the face of evolving economic, social, and technological trends.
The SC will also continue its leadership role in regional capital market initiatives under the ASEAN Capital Markets Forum (ACMF), focusing on sustainability-related taxonomies and guidelines.
Moreover, Malaysia will undergo key assessments in 2025, including the Financial Action Task Force (FATF) Mutual Evaluation and the biennial Corporate Governance (CG) Watch, both of which are expected to enhance the country’s regulatory landscape.
“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,” he added. – March 20, 2025