Analysis: CMP 2026-2030 to increase vibrancy of capital markets

KUCHING (March 10): Analysts are optimistic after the Securities Commission announced its Capital Market Masterplan (CMP) 2026-2030, designed to turn objectives into measurable outcomes without losing the agility needed to respond to new realities.

At its heart are four interconnected outcomes, which are Vibrancy, Inclusivity, Sustainability and Regional Opportunities whereby all are underpinned by Regulatory and Governance Excellence and differentiated by Malaysia’s global leadership in the Islamic Capital Market (ICM) guided by Maqasid al Shariah.

By end 2025, Malaysiaís capital market had grown to RM4.3 trillion with equity market capitalisation at RM2.1 trillion; with bonds and sukuk outstanding at RM2.2 trillion (sukuk account for about 64 per centof outstanding bonds). This exceeds the size of banking assets.

CMP targets a market size of RM5.8 trillion to RM6.3 trillion, RM90 billion to RM100 billion in cumulative sustainability financing, and RM100 billion to RM110 billion of assets with foreign underlying anchored in Malaysia, by 2030.

CMPís response to a fast-changing market is to reshape the marketís foundations with ethics, purpose, technology, talent and recalibrate its direction towards new asset classes, next gen intermediation and cross border connectivity.

Researchers with MBSB Investment Bank Bhd (MBSB Research) were positive on the release of the latest CMP, as it looks to increase the vibrancy of Malaysiaís capital market.

“We believe that the 2030 targets are ambitious but not outlandish given the strong baseline,” it said yesterday.

“However, the CMP’s upper bound 2030 scenario will depend on whole nation alignment such as calibrated tax and investment incentives, continued transformation, pragmatic capital account flexibilities, and clear policy signals on sustainability, AI and digital.”

The key to successful implementation, MBSB Research highlighted, is execution.

Nevertheless, the reward for disciplined execution is meaningful: a market that allocates capital to its highest and best use, that broadens participation and retirement security for Malaysians, that channels funding to climate transition and resilience, and that serves as a gateway for Asean and Asia at large.

MBSB Research was pleased to see that the CMP contained a MY Value Up initiative, as it viewed this the CMP’s centre-piece for public markets.

“It rightly places responsibility on boards/management to deliver value creation, pushes clear key performance indexes, and contemplates incentives (premium index, fee rebates) alongside tough love for persistently non-compliant or dormant PLCs.

“The planned early-warning supervision and action-plan windows can prevent value destruction from becoming chronic.”

On balance, the research firm said MY Value Up should raise market quality and valuations if paired with refreshed MCCG expectations (some ‘apply or explain’ items made mandatory); and improved research coverage/liquidity tools for small and mid-caps so operational progress translates into price discovery.

“We also believe that this may inadvertently lead to corporates looking to enhance and construct a more efficient balance sheet going forward, including shareholding metrics (such as shares outstanding and share capital).

“While we are positive on the long-term plan of the CMP, we recognise that the market is currently facing short-term headwinds, mainly from geopolitics and conflict between Iran and US-Israel.

“We believe that this will be the major influence on markets until the cessation of hostilities. However, it is still uncertain the duration of conflict at current juncture.”