Bursa Malaysia may consider making participation in the MY Value Up Programme mandatory for listed companies if voluntary adoption remains lukewarm through 2027, according to CGS following a recent engagement with the exchange operator.
The research house said public-listed companies are expected to begin submitting their value-up plans towards end-2026, with the disclosures to be uploaded onto a dedicated microsite that is still under development.
Participation will remain voluntary, at least during 2026 and 2027, although Bursa has not ruled out introducing mandatory requirements if the response from listed companies falls short of expectations.
CGS said the programme is also broader than the 88 companies initially targeted by Bursa, with participation open to all public-listed companies, including smaller-cap companies.
Of the initial 88 companies, about 20 — mostly banks — already exhibit many of the characteristics sought under MY Value Up, particularly in areas such as shareholder returns and disclosure standards, according to Bursa.
Some Companies Face Challenges Setting Financial Targets
CGS said Bursa’s engagement with the 88 companies had not encountered significant resistance to the initiative.
However, some companies have raised concerns over the difficulty of committing to specific financial targets when earnings are heavily influenced by external factors outside management’s control.
Plantation companies, for example, may find it difficult to provide firm earnings targets because profitability can be affected materially by movements in crude palm oil prices.
Bursa is also considering establishing a MY Value Up Index comprising companies that perform strongly against the programme’s criteria, although details have yet to be finalised.
Another potential source of support comes from Malaysia’s major government-linked investment institutions.
The Employees Provident Fund, Permodalan Nasional Bhd and Kumpulan Wang Persaraan have indicated that they will allocate part of their capital towards companies demonstrating strong commitment to value creation and MY Value Up principles.
Programme Targets Long-Term Shareholder Value
The MY Value Up Programme was officially launched by the Securities Commission Malaysia and Bursa Malaysia on April 20, 2026.
Chief executive officer Fad’l Mohamed said the initiative will help improve the visibility of corporate performance and strengthen market signals.
He added that clearer articulation of strategy, stronger performance discipline and deeper investor engagement would support more effective price discovery and contribute to a more vibrant capital market.
It is intended to encourage listed companies to focus more strongly on long-term value creation, communicate their growth strategies more clearly, enhance forward-looking disclosures, improve investor engagement and strengthen Malaysia’s attractiveness as an investment destination.
The initial group of 88 companies represented approximately 80% of Bursa Malaysia’s total market capitalisation, with each generally having a market value of around RM4 billion or more when the programme was launched.
The Securities Commission and Bursa subsequently introduced the MY Value Up Programme Guidebook on June 9, providing guidance on developing medium- and long-term value creation plans, setting growth targets and capital allocation priorities, improving disclosures and investor communication, and implementing the plans.
Four Principles To Guide Value-Up Plans
CGS said the framework is built around four core principles — voluntary participation, forward-looking planning, proportionality and board accountability.
Under the voluntary principle, companies retain flexibility over whether to develop and disclose their value-up plans as well as the amount of detail provided.
Plans are also expected to be forward-looking, extending beyond historical financial performance to outline medium- and long-term value drivers, strategic priorities and how progress will be communicated.
The proportionality principle allows implementation to be tailored according to each company’s size, maturity and capacity, while boards are expected to take responsibility for ensuring management capability, succession planning and incentive structures are aligned with value creation objectives.
CGS said the programme could ultimately strengthen the transmission of corporate information to investors and encourage listed companies to become more explicit about how they intend to maximise shareholder value.
The research house also believes stronger adoption could help improve investor confidence and market participation, particularly if companies provide clearer long-term strategies, capital allocation plans and measurable value-creation objectives.
