Bursa Malaysia Securities Berhad, commonly known as Bursa Malaysia, stands as the primary stock exchange of Malaysia and one of Southeast Asia’s most established financial markets. 

Founded in 1973 as the Kuala Lumpur Stock Exchange, the institution underwent significant transformation and modernization before rebranding to Bursa Malaysia in 2004. 

Today, it operates as a fully integrated exchange offering a comprehensive suite of services including securities trading, derivatives trading, offshore international Islamic capital market products, and market data services, positioning itself as a crucial gateway for both domestic and international investors seeking exposure to Malaysia’s dynamic economy.

Bursa Malaysia hosts over 900 listed companies across its Main Market and ACE Market segments, representing diverse sectors from traditional industries like palm oil and rubber to emerging technology and healthcare companies.

Moreover, the exchange’s strategic location and favourable regulatory environment have made it an attractive listing destination for companies throughout the ASEAN region.

Through strategic partnerships and continuous infrastructure development, Bursa Malaysia continues to strengthen its role as a bridge between East and West, facilitating cross-border investment flows and supporting the broader economic development goals of Malaysia and the Southeast Asian region.

Structure and operations

This section covers the basic structure and key operational details of Malaysia’s stock exchange.

Market segments

Bursa Malaysia provides three listing platforms: the Main Market, the ACE Market, and the LEAP Market. 

The Main Market is for established firms that can meet profitability or market capitalisation tests, while the ACE Market is sponsor-driven and tailored to growth companies without strict profit requirements. 

The LEAP Market is designed for SMEs and start-ups, accessible only to sophisticated investors.

Listing requirements

Main Market applicants must qualify under one of three routes: the profit test, the market capitalisation test, or the infrastructure project corporation test. 

Under the profit test, companies need cumulative profits of at least RM20 million over three to five years. 

Under the market capitalisation test, they must have a minimum value of RM500 million with at least 25 percent of shares held by 1,000 or more public shareholders. 

ACE Market listings rely on Sponsor assessments of business prospects, while LEAP Market access is limited to investor groups with higher risk tolerance.

Securities and trading

The exchange supports trading in ordinary and preference shares, warrants, bonds and sukuk, real estate investment trusts (REITs), exchange-traded funds (ETFs), and structured products. 

Trading runs in two sessions: 09:00–12:30 and 14:30–17:00, preceded by a pre-opening phase from 08:30. 

All trades are cleared and settled through the Central Depository System on a T+2 cycle, ensuring secure custody, timely transfer of ownership, and effective oversight of trading activities.

Key statistics

This section covers key data points with respect to Malaysia’s stock exchange.

Market capitalisation

Over the past year, Bursa Malaysia’s total market capitalisation moved within a narrow range. 

It began at RM2,035.63 billion (US$433.12 billion) in August 2024, climbed to a peak of RM2,080.51 billion (US$442.66 billion) in December 2024, before sliding sharply in early 2025.

The low point was recorded in March 2025 at RM1,871.06 billion (US$398.11 billion), a drop of nearly 8 percent from the December high. 

Recovery in the second half of the year lifted the total to RM1,994.26 billion (US$424.31 billion) by September 2025 month-to-date.

Overall, Bursa Malaysia shed about RM41.37 billion (US$8.80 billion), or roughly 2 percent, over the twelve-month period.

This performance tracked the FBMKLCI index, which also saw weakness in late 2024 and early 2025, followed by a moderate rebound.

Number of listed companies

As of the end of 2024, Bursa Malaysia’s full market composition included a broad range of companies and investment products. 

The Main Market hosted 791 companies, forming the core platform for established corporations. 

The ACE Market supported 201 companies, catering to growth businesses, while the LEAP Market listed 47 companies, focused on SMEs and start-ups.

Beyond equities, the exchange provided a wide product mix: 20 real estate investment trusts (REITs), 17 exchange-traded funds (ETFs), and 1 exchange-traded bond and sukuk (ETBS). 

It also listed 1 closed-end fund, 1 stapled security, and 1 special purpose acquisition company (SPAC).

Derivatives-linked instruments were especially prominent, with 1,100 structured warrants available, highlighting Bursa Malaysia’s role in offering leveraged products alongside its traditional equity and fund listings. 

Together, these segments illustrated the exchange’s position as a diversified marketplace serving both domestic and international investors.

Foreign vs domestic participation

Total trading reached RM58.2 billion (US$12.38 billion) in value and 57.3 billion units in volume, excluding direct business transactions, in August of 2025.

By value, foreign institutional investors dominated with 41.93 percent, equal to about RM24.4 billion (US$5.19 billion). 

Local institutional investors followed at RM19.7 billion (US$4.19 billion) or 33.85 percent, while local retail investors accounted for RM8.9 billion (US$1.89 billion) or 15.30 percent. 

Local nominees contributed RM5.0 billion (US$1.06 billion), and foreign retail investors just RM0.2 billion (US$43 million)

By volume, local institutions were the largest participants with 30.80 percent, equal to about 17.6 billion units, followed closely by local retail investors at 17.2 billion units (29.94 percent). 

Foreign institutions traded 14.7 billion units (25.75 percent), local nominees 7.6 billion units (13.19 percent), and foreign retail investors just 0.2 billion units (0.33 percent)

Major listed companies and sectors

This section covers some of the key sectors and businesses traded on Malaysia’s stock exchange.

Banking sector dominance

The banking sector forms the backbone of Bursa Malaysia’s largest companies by market capitalisation. 

Maybank is Malaysia’s largest bank by market capitalisation and total assets and one of the largest banks in Southeast Asia, with total assets exceeding US$203 billion and a net profit of US$1.98 billion for 2019. 

These major banking institutions represent the financial services sector that drives much of Malaysia’s capital market activity.

Key industrial and consumer sectors

Beyond banking, Bursa Malaysia hosts major companies across diverse sectors including utilities, gaming, and property development. 

Tenaga Nasional Berhad is a Malaysian electric company. 

The company provides electrical power to Malaysia’s population and employs more than 31,000 people, making it one of the largest utility companies in Southeast Asia. 

Genting is a leading multinational corporation with a presence in a range of industries including gaming, plantations, and energy. 

Genting Group is a Malaysian conglomerate with operations spanning leisure and hospitality (through Genting Malaysia hereafter), plantations and agribusiness, power generation and distribution, exploration and production of oil and gas.

Sectoral breakdown and market performance

The exchange represents Malaysia’s economic diversity through companies spanning energy, mining, manufacturing, technology, and consumer goods sectors. 

These largest companies on Bursa Malaysia collectively represent key sectors that drive the Malaysian economy, from traditional industries like palm oil plantations and commodities to modern services including banking, telecommunications, and technology. 

The exchange’s sectoral diversity makes it an attractive destination for investors seeking exposure to Southeast Asia’s economic growth across multiple industries.

Recent performance and trends

These largest companies on Bursa Malaysia collectively represent key sectors that drive the Malaysian economy, from traditional industries like palm oil plantations and commodities to modern services including banking, telecommunications, and technology. 

The exchange’s sectoral diversity makes it an attractive destination for investors seeking exposure to Southeast Asia’s economic growth across multiple industries.

Recent Performance and Trends

This section covers key indexes covering Malaysia’s stock exchange.

FBMKLCI

Over the last 12 months, the FTSE Bursa Malaysia KLCI (FBMKLCI) — the benchmark index of 30 large-cap companies — started at 1,678.80 in August 2024 and fell to a low of 1,508.35 in May 2025. 

By September 2025 (MTD) it recovered to 1,598.23, leaving it 4.8 percent lower year-on-year. 

The index reflected weaker sentiment in late 2024 and early 2025 before stabilising mid-2025.

FTSE Bursa Malaysia 100

Over the same 12-month period, the FTSE Bursa Malaysia 100 index, which tracks the largest 100 companies, moved from 12,187.62 in August 2024 to a trough of 11,061.00 in May 2025. 

It has since rebounded to 11,647.31 in September 2025 (MTD), ending the period about 4.4 percent lower than a year earlier. 

The pattern closely mirrored the KLCI.

FTSE Bursa Malaysia EMAS

The FTSE Bursa Malaysia EMAS index, representing nearly all Main and ACE Market companies, also declined over the last 12 months. 

It began at 12,484.46 in August 2024, bottomed at 11,299.80 in May 2025, and rose to 11,896.43 in September 2025 (MTD). 

This was a net loss of 4.7 percent year-on-year, reflecting broad market weakness and only a partial recovery by late 2025.

Foreign ownership rules and restrictions

Malaysia’s stock market, Bursa Malaysia, is open to foreign investment and allows foreign corporations to issue shares. 

The government has progressively liberalised its capital markets, and in many sectors foreign investors may hold up to 100 percent equity in new projects, subject to licensing and sector-specific approvals. 

However, ownership rules remain uneven across industries.

Foreign issuers with the majority of their operations in Malaysia must comply with Bumiputera equity requirements. 

Upon listing, at least 12.5 percent of the enlarged issued share capital must be allocated to Bumiputera investors. 

In the banking sector, aggregate foreign shareholding is capped at 30 percent for commercial banks, while Islamic banks and investment banks may allow up to 70 percent foreign equity, subject to regulatory approval.

Sectoral limitations

Although Malaysia generally encourages foreign participation, sectoral caps continue to apply. 

Transportation and related services, for example, often limit foreign ownership to minority stakes, sometimes around 49 percent, depending on the licence. 

Privatisation programmes are also structured to ensure Bumiputera participation, though the exact allocations are set case by case rather than by a single universal rule.

Regulatory framework and compliance

Malaysia does not have a single overarching law that regulates foreign acquisitions on a “national interest” basis. Instead, foreign investment is governed by a combination of sectoral statutes, regulatory approvals, and licensing conditions. 

While Malaysia does not publish sanctions targeting specific countries for investment in its capital markets, investors from higher-risk jurisdictions may face practical barriers such as difficulties establishing banking relationships.

Investment access and procedures

Foreign investors can access Bursa Malaysia through direct shareholdings, participation in IPOs, or portfolio flows via investment funds. 

The exchange’s infrastructure, including modern clearing and settlement systems, facilitates international participation, provided investors comply with the relevant sectoral ownership requirements and regulatory approvals.

Regulation and oversight

This section covers key regulatory frameworks governing the operations of Malaysia’’s stock exchange.

Legal framework

Bursa Malaysia Securities Berhad is governed by the Capital Markets and Services Act 2007 (CMSA), which provides the statutory basis for securities, futures, and capital markets regulation in Malaysia. 

The Act gives the Securities Commission Malaysia (SC) authority over the exchange, including approval of its rules, supervision of market conduct, and protection of investors. 

Amendments to the rules of the exchange and the introduction of new products require approval from the SC under the CMSA.

External oversight

The SC oversees Bursa Malaysia to ensure compliance with its obligations under the CMSA. 

This supervision includes regulatory assessments, approval of listing rules and market products, and audits of Bursa’s regulatory functions. 

The SC also monitors disclosure standards, investigates market misconduct, and evaluates Bursa’s enforcement activities, ensuring the exchange operates in line with national financial policies and international standards.

Internal regulation

Within Bursa Malaysia, the Regulation Functional Group, led by a Chief Regulatory Officer, is responsible for surveillance, inspections of brokers, enforcement of rules, and oversight of issuers and trading participants. 

To reinforce accountability, Bursa has established regulatory committees such as the Listing Committee, Market Participants Committee, and Appeals Committee. 

These bodies, which include independent directors and external experts, review listing applications, rule breaches, and appeals, providing checks and balances in the exchange’s regulatory framework.

Malaysia stock market news sources

There are a range of sources where investors can find Malaysia stock market news. 

These include:

Official source

The official source for news is Bursa Malaysia, which provides announcements, market updates, and disclosures from listed companies. It is the primary platform for regulatory filings, trading statistics, and official press releases.

Domestic financial media

Among domestic outlets, The Edge Malaysia is the leading financial and business publication, covering corporate earnings, capital market trends, IPOs, mergers and acquisitions, and policy developments affecting Bursa Malaysia. 

The Star publishes daily reporting on stock market movements, sector performance, and commentary on listed companies, while the New Straits Times (Business Times) adds coverage of market activity, banking, and investment news relevant to Bursa Malaysia.

International outlets

Reuters provides timely updates on Bursa Malaysia and its listed companies, often with regional or global context.

Bloomberg follows Malaysian market performance, foreign fund flows, and macroeconomic data influencing the exchange. 

Nikkei Asia reports on Malaysia’s capital markets within broader ASEAN trends.

Specialised finance and industry news

Asia Banking & Finance focuses on banking, financial services, and regulation, which are central to Malaysia’s banking-heavy exchange. 

MalaysiaKini offers independent reporting and analysis on corporate governance, policy changes, and the wider business environment.

Regional Comparison

Within ASEAN, Bursa Malaysia sits in the middle tier of stock exchanges. 

It is more established and diversified than the Philippines and Vietnam, more predictable in regulation than Indonesia, but less liquid and internationalised than Singapore and Thailand. 

Its comparative advantage lies in Islamic finance leadership, commodity-linked industries, and a regulatory environment that balances development with investor protection.

Singapore

The Singapore Exchange (SGX) is the region’s most developed and internationalised market. It attracts global institutional investors through advanced products, including derivatives, real estate investment trusts, and exchange-traded funds. 

In comparison, Bursa Malaysia has strong domestic participation and a unique Islamic finance niche but is less international in scope and scale than SGX.

Thailand

The Stock Exchange of Thailand (SET) is more liquid than Bursa Malaysia, with consistently higher daily turnover and significant foreign investor participation. 

Bursa, while smaller in trading activity, provides greater depth in Islamic financial instruments and has a broader representation of commodity-linked industries, especially palm oil and plantations.

Indonesia

The Indonesia Stock Exchange (IDX) is ASEAN’s largest by listed companies and reflects the country’s scale and domestic demand. It is characterised by strong energy, mining, and banking sectors. 

Bursa Malaysia is smaller in absolute size but offers more regulatory predictability and has positioned itself as a hub for Shariah-compliant listings, giving it a differentiated profile.

Philippines

The Philippine Stock Exchange (PSE) is smaller and less liquid than Bursa Malaysia, with fewer listed companies and heavier concentration in property and banking. 

Bursa offers greater sectoral diversity and higher overall market capitalisation, supported by stronger institutional frameworks and deeper product offerings.

Vietnam

Vietnam’s stock market has grown rapidly and now rivals Bursa Malaysia in dynamism, though it remains less mature in regulatory frameworks and product depth. 

Vietnam is attractive for high-growth manufacturing exposure, while Bursa’s appeal lies in its stability, established governance, and integration of Islamic finance.

Summary

Bursa Malaysia is the country’s primary stock exchange and one of Southeast Asia’s more established markets, rebranded from the Kuala Lumpur Stock Exchange in 2004. 

It operates as a fully integrated platform covering equities, derivatives, Islamic finance products, clearing, and settlement, with over 900 listed companies spanning sectors from plantations and energy to technology and healthcare. 

The exchange is distinctive for its global leadership in Islamic capital markets, offering Shariah-compliant equities and sukuk, and maintains a regulatory framework overseen by the Securities Commission Malaysia. 

With a market capitalisation exceeding RM2 trillion, Bursa Malaysia functions as a regional financial hub, balancing strong domestic participation with growing foreign investor interest.

That said, Southeast Asian economies can be dynamic and change quickly.

With this in mind, the best way to keep up to date with the changing business environment is to make sure to subscribe to Vieter.

(US$1 = RM 4.7)