Foreign funds pulled out over 20 billion last year, and the exchange is rolling out six moves to lure capital back.

(Kuala Lumpur, 29th)
Foreign investors recorded net selling of more than RM22 billion in Malaysian equities last year. In response, Bursa Malaysia (BURSA, 1818, Main Market Financial Services) said it plans to attract foreign funds back through six strategic initiatives aimed at improving market appeal and participation.

The six measures include:

1. targeting large IPOs (market cap above RM1 billion);
2. positioning Malaysia around high-growth sectors, especially the tech ecosystem;
3. strengthening investor relations (IR) efforts;
4. creating channels for investors to engage directly with policymakers;
5. upgrading market infrastructure and overall market quality; and
6. enhancing the fundamentals of listed companies.

Bursa Malaysia CEO Datuk Fad’l said one of the exchange’s key priorities is to bring in IPOs with market capitalizations above RM1 billion, as many foreign institutions require a minimum investable size. Speaking at the exchange’s results briefing, he said Bursa wants more sizeable companies with stronger investor participation—particularly in the technology ecosystem—and is actively supporting larger listings. “There are quite a number of companies in the pipeline, and we’re working to bring them to market,” he added.

To improve visibility and engagement, Fad’l said Bursa is also stepping up IR activities so foreign and institutional investors can better understand companies’ strategies, growth potential, and forward plans.

He noted that Malaysia’s “Invest Malaysia” approach differs from markets such as Singapore, Hong Kong, and New York: it not only introduces investors to companies, but also provides opportunities to meet policymakers and obtain first-hand insight into macroeconomic conditions, policy direction, and strategic priorities—information he believes is particularly valuable to foreign investors.

Beyond that, Bursa aims to raise market quality by supporting price discovery, reducing trading friction, strengthening listed-company fundamentals, and making market access easier for investors.

On external headwinds such as geopolitical tensions and economic uncertainty, Fad’l acknowledged these have become the “new normal.” Still, he said Malaysia’s market performance remains on track: GDP growth is expected at around 4.5% this year, capital flows are shifting toward ASEAN, and Malaysia is among the key beneficiaries. Year-to-date, foreign net inflows into Malaysian equities have exceeded RM1.1 billion, supported by clear policy direction and stability—factors investors tend to value.