The Securities Commission Malaysia (SC) has welcomed Budget 2027’s measures to strengthen Malaysia’s capital market, including incentives for dual listings, expanded wealth management opportunities and RM270 million in alternative financing support for micro, small and medium enterprises (MSMEs).
SC Chairman Dato’ Mohammad Faiz Azmi said the initiatives would accelerate the implementation of the Capital Market Masterplan 2026–2030 (CMP), which aims to strengthen Malaysia’s position as a regional investment and fundraising hub while promoting greater market inclusivity and sustainable financing.
“Targeted Budget 2027 measures for companies and capital market instruments mark the first step in delivering on our CMP aspirations to raise the ceiling via market growth as well as the floor by deepening market inclusivity,” he said in a statement.
He said the measures would support economic growth through more efficient capital formation and mobilisation, while enhancing the vibrancy, sustainability and regional competitiveness of Malaysia’s capital market.
Dual-Listing Incentives To Help Malaysian Firms Access Regional Capital
Among the key announcements welcomed by the SC is a matching grant for companies pursuing dual listings on Bursa Malaysia and the Stock Exchange of Hong Kong.
Mohammad Faiz said the initiative would provide Malaysian businesses with access to a wider pool of regional capital, enabling them to expand beyond the domestic market.
The measure complements a simplified dual initial public offering (IPO) listing framework introduced through a single-submission arrangement developed by the SC and Hong Kong’s Securities and Futures Commission (SFC).
He said both regulators had recently issued guidelines to operationalise the framework, potentially easing the listing process for companies seeking exposure to both markets.
The SC also noted strong interest among prospective Hong Kong fund managers in listing exchange-traded funds (ETFs) on Bursa Malaysia, with the regulator anticipating the first such listing in the near future.
Meanwhile, employment pass facilitation under the MyABE Scheme is expected to help eligible publicly listed companies attract talent and expand their regional operations across ASEAN.
Mohammad Faiz said these initiatives would provide Malaysian businesses with a clearer pathway to accessing regional capital and establishing a stronger international presence.
Family Office Assets Reach RM20.8 Billion
The SC also welcomed the government’s move to enable the Multi-Family Office (MFO) model alongside the existing Single Family Office (SFO) Incentive Scheme.
Mohammad Faiz said the initiative signals Malaysia’s ambition to become a comprehensive wealth management hub catering to international families and asset owners.
The existing SFO scheme has attracted indicative assets under management totalling RM20.8 billion to date.
The introduction of the MFO model is expected to broaden Malaysia’s wealth management offerings and strengthen its ability to attract international investment capital.
RM90 Billion To RM100 Billion Sustainable Financing Target By 2030
On sustainable finance, the SC said Budget 2027’s tax incentives would support its target of raising RM90 billion to RM100 billion in sustainable financing by 2030 under the CMP.
Among the measures is a tax deduction for eligible issuance costs associated with SC-approved Sukuk PRISMA, aimed at encouraging sustainable Islamic financing and attracting international investors.
The government also announced an income tax exemption on grants received under the Sustainable and Responsible Investment (SRI) Sukuk Scheme and Bond Grant Scheme, effective Jan 1, 2027.
The SC said these incentives would help reduce issuance costs and encourage greater adoption of sustainable financing instruments.
Additionally, the extension of tax incentives for Islamic fund management is expected to reinforce Malaysia’s competitiveness as a regional Islamic wealth and asset management hub.
Mohammad Faiz said these measures would further strengthen Malaysia’s position as a global leader in Islamic finance while supporting the expansion of the domestic Islamic capital market.
RM270 Million To Expand MSME Access To Alternative Financing
The SC also highlighted the government’s RM270 million allocation to improve financing accessibility for MSMEs through equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms.
The initiative is intended to provide smaller businesses with alternative sources of funding, reducing their dependence on traditional bank financing while improving access to capital for business expansion.
The extension of fiscal support for ECF and P2P financing is also expected to strengthen Malaysia’s alternative financing ecosystem.
The SC said the measures would enable businesses at different stages of development to secure funding while encouraging entrepreneurship and greater participation in the capital market.
Overall, Mohammad Faiz said Budget 2027 provides an important foundation for advancing the CMP’s objectives of regional competitiveness, market vibrancy, sustainability and inclusivity.
The SC reaffirmed its commitment to implementing the initiatives in support of the Ekonomi MADANI agenda, with the aim of building a more robust, inclusive and high-value economy while positioning Malaysia as a competitive regional capital market destination.
