The launch of the MY Value Up Guidebook by the Securities Commission Malaysia (SC) and Bursa Malaysia has received a positive reception from market observers, with analysts viewing the programme as a potentially meaningful catalyst for improving corporate value creation and investor engagement across Malaysia’s listed companies.
According to Kenanga Research, the newly unveiled guidebook provides a principles-based framework aimed at helping public listed companies (PLCs) articulate long-term growth strategies, improve capital allocation discipline and strengthen communication with investors under the Capital Market Masterplan 2026-2030.
More importantly, the research house highlighted the commitment by major Government-Linked Investment Companies (GLICs) to allocate capital towards companies that demonstrate a strong commitment to MY Value Up principles, describing it as a significant incentive that could drive broader participation among corporates.
“The implementation details suggest the programme should be sufficiently robust to avoid becoming a mere box-ticking exercise,” Kenanga said in a report.
GLIC Support Seen as Key Catalyst
The programme received a major boost following confirmation that key institutional investors, namely the Employees Provident Fund (EPF), Retirement Fund Inc (KWAP) and Permodalan Nasional Berhad (PNB), will actively support companies that embrace the initiative.
Collectively, the three GLICs account for an estimated RM430 billion of investments and hold approximately 26% of the market capitalisation of the top 88 listed companies targeted under the programme.
Kenanga noted that while Malaysia’s approach differs from South Korea’s Value Up initiative, where a dedicated Value Up Index was introduced to channel liquidity into well-managed companies, the participation of major GLICs could serve as a similarly effective catalyst.
“The financial muscle of these institutions represents a powerful incentive for companies to strengthen value creation efforts and improve corporate disclosures,” the report said.
The brokerage estimates that about one in five of the largest 88 listed companies on Bursa Malaysia currently has a GLIC as its largest shareholder, while nearly 90% already count at least one GLIC among their investors.
Potential Beneficiaries
Kenanga believes increased GLIC participation could enhance investor interest in companies that currently have relatively limited GLIC ownership.
Among the stocks highlighted as potential beneficiaries are Kelington Group Berhad, Econpile Holdings Berhad and QL Resources Berhad.
These names add to the brokerage’s earlier list of MY Value Up beneficiaries, which includes S P Setia Berhad, Sime Darby Property Berhad, IJM Corporation Berhad, PPB Group Berhad, Genting Malaysia Berhad and Yinson Holdings Berhad.
Learning from Regional Success Stories
Kenanga said Malaysia stands to benefit from a “second-mover advantage” by drawing lessons from similar initiatives in Japan, South Korea and Taiwan.
The guidebook encourages companies to focus not only on financial performance but also on operational efficiency and sustainable value creation metrics. Suggested measures include dividend payout ratios, return on equity relative to cost of equity, market valuation indicators and sector-specific performance benchmarks.
The research house noted that the programme places strong emphasis on board accountability, governance and succession planning, while encouraging companies to align executive incentives with long-term corporate objectives.
“This should encourage management teams to prioritise sustainable earnings growth rather than short-term decisions that may undermine long-term value creation,” Kenanga said.
Flexibility Brings Opportunities and Challenges
While supportive of the initiative, Kenanga said investors will be watching how effectively companies implement the programme, given the flexibility afforded to participating firms.
MY Value Up remains voluntary, with companies allowed considerable discretion in developing and disclosing their plans. The guidebook does not prescribe a specific planning horizon, such as a mandatory three-year strategy, leaving implementation largely company-led.
However, Kenanga believes safeguards built into the framework should help maintain accountability. These include encouraging sector-specific disclosures to improve comparability among peers and requiring companies to explain any significant deviations from their stated plans.
The brokerage expects most companies to adopt a conservative approach when setting targets, particularly given the expectation that participating firms will begin publicly disclosing their MY Value Up plans from 2027 onwards.
Overall, Kenanga remains optimistic that the combination of regulatory guidance, stronger board accountability and the prospect of increased GLIC investment support could help improve corporate governance standards and unlock long-term shareholder value across Bursa Malaysia.
