PORTALBERITA.CO.ID - The Malaysian government has initiated a strategic pivot in capital deployment, mandating state-linked funds to prioritize investments in publicly listed entities that showcase robust governance frameworks and superior value creation. This significant policy directive was formally announced in Kuala Lumpur on Tuesday, June 9, 2026, during the launch of the "MY Value Up" program guidebook and Invest Malaysia 2026 proceedings.
This "MY Value Up" initiative is designed to elevate the overall standard of corporate conduct and enhance the quality and depth of the domestic capital market landscape. Key institutional backers of this strategic shift include major national entities such as the Employees Provident Fund, the Retirement Fund, and the state-owned investment manager, Permodalan Nasional.
The framework specifically targets the top 88 companies listed on Bursa Malaysia, which collectively account for approximately 80 percent of the exchange's total market capitalization. These firms are now expected to embed and clearly articulate medium- to long-term value-creation agendas as part of their operational strategy.
This program forms an integrated component of the broader Capital Market Masterplan spanning from 2026 to 2030, aiming to significantly boost the appeal of Malaysian equities to both domestic and international investors. Deputy Prime Minister Ahmad Zahid Hamidi emphasized the role of incentivizing high standards through institutional backing.
"This (initiative) will ensure that companies embracing stronger governance, better capital allocation and higher standards of transparency are recognized not only by the market, but also by the nation's largest institutional investors," stated Deputy Prime Minister Ahmad Zahid Hamidi.
This policy adjustment represents a calculated move by policymakers to cultivate a capital market characterized by greater accountability, discipline, and sustainability. The goal is to deepen the market's functionality to effectively underpin national economic expansion amid evolving global investment trends.
The Deputy Prime Minister further articulated the evolving role of the financial infrastructure in national development. "Our capital market is no longer simply a financing platform. It is the national growth engine," said Deputy Prime Minister Ahmadزهid Hamidi.
As reported by Businesstimes, the capital market’s scale reached RM4.3 trillion in 2025, with RM187.7 billion raised through 60 initial public offerings in the preceding year. However, structural performance issues persist despite this growth, according to the Securities Commission.
Securities Commission Executive Chairman Mohammad Faiz Azmi noted that only about 200 of the 1,100 listed firms managed to achieve a return on equity above the 8 percent benchmark. "When we studied the issue, we found some surprising gaps," said Executive Chairman of the Securities Commission Mohammad Faiz Azmi.
