KUALA LUMPUR, March 9 (Bernama) -- Malaysia’s capital market is projected to grow to between RM13.8 trillion and RM20 trillion by 2045, while expanding organically to between RM5.8 trillion and RM6.3 trillion over the next five years, supported by the implementation of the Capital Market Masterplan 2026–2030 (CMP).
The country’s capital market expanded to RM4.3 trillion in 2025 from RM2.8 trillion in 2015.
Built on a 20-year horizon, the latest CMP outlines a clear roadmap guided by four interconnected themes: vibrancy, inclusivity, sustainability, and regional opportunities, according to the masterplan.
The fourth iteration of the CMP by the Securities Commission (SC), launched today by Prime Minister Datuk Seri Anwar Ibrahim, aims to further align Malaysia’s capital market with broader economic and policy frameworks.
These include structural reforms, targeted tax and investment incentives, and continued liberalisation of the capital account.
The first CMP (2001–2010) laid the foundation for a modern capital market in the aftermath of the Asian financial crisis. CMP2 (2011–2020) restored market confidence post-global financial crisis, while CMP3 (2021–2025) emerged in the wake of the COVID-19 pandemic.
The latest edition targets assets with foreign underlying exposure to reach between RM100 billion and RM110 billion by 2030, and between RM200 billion and RM300 billion by 2045.
By 2030, it also aims to mobilise between RM90 billion and RM100 billion in cumulative financing for projects delivering measurable environmental and social impact, rising to RM550 billion–RM800 billion by 2045.
“Through the CMP, we seek to position Malaysia as a regional leader in responsible investment, where ESG principles, Shariah-compliant instruments, and socially responsible investing are not peripheral considerations but bona fide investment propositions,” the Prime Minister said in the CMP’s foreword.
Anwar, who is also Finance Minister, said the masterplan will enable entrepreneurs to access the capital market, allow investors to scale solutions, and help rakyat participate meaningfully in wealth creation.
Expansion into New Asset Classes
The CMP envisions expanding the market to cover new asset classes and financing models.
“Digital assets, private credit, and alternative investments will be tapped to unlock new pathways for innovation and enterprise growth,” the document said.
Technology and innovation will also reshape investor engagement, lower friction costs, enable product innovation, and unlock disruptive models.
“Digital platforms, tokenised instruments, and artificial intelligence (AI)-enabled advisory services will help reduce costs, broaden participation, and provide tailored solutions to investors,” it added.
Competitiveness will increasingly hinge on cost efficiency, pushing market players to streamline operations and innovate across the value chain.
“Business models and intermediaries will need to evolve as digital platforms, AI, and decentralised models reshape traditional roles and shift the industry towards more personalised, service-driven models.”
The regulator and intermediaries will play their respective roles in fostering innovation and strengthening market infrastructure to drive broader adoption of technology.
The market is also expected to become more borderless and integrated. SC said deeper regional linkages and enhanced cross-border connectivity will pave the way for greater foreign participation, broaden the investor base, and improve market access.
“This will strengthen liquidity and reinforce Malaysia's position as a regional hub for investment flows. As sector boundaries blur, larger institutions will integrate across multiple business lines, while niche players will differentiate through specialisation in areas such as impact finance and tokenisation.”
Capital Market for All Malaysians
Guided by the 13th Malaysia Plan and the MADANI Economy Framework, Malaysia emphasises building an inclusive and resilient economy. This underscores the nation’s commitment to “raising the floor” to uplift living standards, strengthen social protection, ensure sustainable progress, and promote inclusive development.
The CMP’s overarching vision is to democratise access to the capital market, serving the needs of all Malaysians and small businesses to the fullest extent possible, SC said.
Currently, individual participation in the Malaysian capital market stands at 25 per cent.
“This needs to be raised to meet the requirements of an inclusive society. Around 60 per cent of non-investors are below the age of 40, reflecting limited financial awareness and engagement among younger Malaysians,” the report said.
A lack of trust remains an obstacle, with more than half (53 per cent) of non-investors citing fear of scams as their main reason for staying out of the market. These concerns highlight the urgent need for holistic and effective financial education.
The CMP outlines inclusivity priorities to realign access in a manner consistent with the changing investment preferences of next-generation investors.
— BERNAMA
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