The Malaysia Securities Commission published its Annual Report 2025, the Audit Oversight Board Annual Report 2025 and the Capital Market Stability Review 2025, reporting that the Malaysian capital market expanded 3.2% in 2025 to a record RM4.3 trillion while continuing to operate in a fair and orderly manner with no systemic stability concerns observed. The release also sets out supervisory and enforcement outcomes and summarises priority initiatives under the Capital Market Masterplan 2026-2030. Key metrics in the Annual Report include a 19.7% fall in average daily equity trading value to RM2.76 billion, Islamic Capital Market growth of 4.31% to RM2.7 trillion, and a 6.9% increase in assets under management to RM1.14 trillion. Total funds raised rose 35.4% to RM187.7 billion and 60 IPOs were listed, while venture capital and private equity committed funds increased 21.66% to RM30.05 billion and alternative financing raised RM5.7 billion for MSMEs and MTCs. The SC highlighted Malaysia’s recognition by the IFRS Foundation as an early ASEAN adopter of the International Sustainability Standards Board Standards with limited transition under the National Sustainability Reporting Framework, and noted nine conditional approvals under the Single-Family Office incentive framework representing nearly RM670 million in indicative AUM. On market integrity, Malaysia achieved “Regular Follow-up” status under the Financial Action Task Force assessment; the SC initiated 96 criminal charges against 16 individuals, secured nine convictions with custodial sentences of up to three years and RM13.1 million in fines, obtained RM11.14 million in disgorgement and civil penalties, restituted RM1.98 million to 239 investors with RM8.63 million earmarked for 993 more affected individuals, and imposed 99 administrative sanctions including RM8.28 million in monetary penalties. The stability review found intermediaries well-capitalised with capital adequacy ratios above regulatory requirements, no corporate bond defaults, and stress testing indicating investment funds could withstand redemption shocks, while the AOB reported 41 registered audit firms and 397 auditors, inspections of 41 audit engagements, enforcement actions against two audit firms and six auditors totalling RM423,750, and its first suspension of an audit firm and two partners for serious audit quality issues. Looking to 2026, deliverables are framed around the Capital Market Masterplan 2026-2030 pillars of vibrancy, inclusivity, sustainability and regional opportunities, building on initiatives already launched including the MY Value Up Programme, a new private debt notes framework for MSMEs, and an extended ETF framework to permit Digital Asset ETFs and provide regulatory clarity for digital asset broking. Planned initiatives include a revised Malaysian Code on Corporate Governance 2026, enhancements to the MAIN, ACE and LEAP market frameworks, an enhanced Digital Asset Exchanges framework, and measures to facilitate greater tokenisation of securities.

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