Malaysia

ASEAN Investment Conference Highlights Malaysia’s Regional Role

Kuala Lumpur served as the venue for the ASEAN Investment Conference (AIC) 2025, which highlighted inclusive development and resilient growth across the region. The conference underscored Malaysia’s strategic role as ASEAN Chair, with initiatives to strengthen intra-ASEAN trade and foster growth in emerging sectors such as artificial intelligence and green energy. Discussions also addressed financial integration, fintech innovation, and deeper economic engagement with China, Japan, and South Korea. The launch of the ASEAN Simplified ESG Disclosure Guide for SMEs reaffirmed ASEAN’s commitment to sustainable development and support for small businesses. Date of Release: 8 April 2025 Implementation on: N/A Applicable to: ASEAN stakeholders, SMEs, investors, fintech and sustainability sectors 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM)

Gathering regional finance leaders and policymakers, the 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) took place in Kuala Lumpur, co-chaired by Malaysia’s Finance Minister II and the Governor of Bank Negara Malaysia. The meeting addressed regional economic resilience amid global uncertainties, endorsed initiatives on sustainable finance, payment connectivity, and financial integration, and supported the ASEAN Power Grid and SME green transition. Ministers also welcomed governance reforms, enhanced regional cooperation, and emphasised the private sector’s role in driving innovation and financing for ASEAN’s inclusive and sustainable future. Date of Release: 10 April 2025 Implementation on: N/A Applicable to: ASEAN finance ministries, central banks, financial sector stakeholders SC Malaysia Launches Third Cohort of Shariah Mentorship Programme

A significant step in strengthening Malaysia’s Islamic capital market was marked by the launch of the third cohort of the Shariah Mentorship Programme (SMP) by the SC. Introduced in 2023 and administered by ISRA Consulting with support from the Capital Market Development Fund, the eight-month programme combines classroom learning with industry placements. The SC noted that more than 70% of SMP alumni are currently employed in Islamic finance institutions and are expected to register as Shariah advisers. Date of Release: 22 April 2025 Implementation on: Already launched Applicable to: Islamic capital market professionals, financial institutions

SC Proposes Framework for Tokenised Capital Market Products

In an effort to promote innovation in the capital market, the SC issued a consultation paper on a proposed framework for the tokenisation of capital market products. The proposal aims to leverage distributed ledger technology while ensuring investor protection through clear disclosure, governance, and risk management requirements. Date of Release: 6 May 2025 Implementation on: To be determined (post-consultation) Applicable to: Capital market intermediaries, fintech players, token issuers, SC Warns Public of Scam Involving Impersonation of Officials

Public vigilance was reinforced when the SC warned of a scam involving fraudsters impersonating SC officials. The scheme included false claims that individuals were under investigation and demands for “guarantee deposits” of up to RM500,000 to avoid legal action. The SC reiterated that it does not solicit payments in relation to investigations and urged the public to verify such claims through official channels. Date of Release: 8 May 2025 Implementation on: Immediate advisory Applicable to: General public SC Signs Enhanced IOSCO MMoU to Strengthen Cross-Border Enforcement

International enforcement cooperation was strengthened by the SC through its signing of the International Organisation of Securities Commissions’ (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU). This agreement expands SC’s powers to obtain audit papers, compel testimony, freeze assets, and access internet and telephone records, thereby enhancing cross-border collaboration in combating securities violations. Date of Release: 14 May 2025 Implementation on: Effective upon signing Applicable to: SC enforcement division, cross-border regulatory partners

SC Warns of Fake Public Register Scam

Investor protection remained a priority as the SC issued an alert on a cloned “public register” scam involving a fraudulent website with fabricated company registration numbers and licence details. Victims were deceived into transferring funds to mule bank accounts, and the SC confirmed that the fraudulent sites have been taken down. Date of Release: 5 June 2025 Implementation on: N/A Applicable to: General public

Malaysia’s Sustainability Reporting Practices Recognised by ISSB

Malaysia’s position in sustainability reporting was internationally acknowledged when the IFRS Foundation confirmed its alignment with the International Sustainability Standards Board (ISSB) standards. This recognition reflects Malaysia’s commitment to global reporting standards and transparency in environmental, social, and governance (ESG) disclosures. Date of Release: 13 June 2025 Implementation on: Already aligned Applicable to: Listed companies Launch of Climate Finance Innovation Lab

Collaboration between Bank Negara Malaysia and the SC resulted in the establishment of the Climate Finance Innovation Lab, designed to address funding gaps for climate-aligned projects, promote innovative green finance products, and strengthen climate resilience within the financial sector. Date of Release: 18 June 2025 Implementation on: 18 June 2025 Applicable to: Financial institutions and climate-focused investors

SC Hosts InvestSmart® Outreach in Pahang

The SC advanced its financial literacy and investor protection efforts through its InvestSmart® programme in Pahang, which promoted responsible investing and raised awareness of investment scams. The programme featured seminars, exhibitions, and advisory sessions to support informed decision-making among the public.

Date of Release: 20 June 2025 Implementation on: 20 June 2025 Applicable to: General public and retail investors

Unauthorised Transactions Have Been Quantified and are Limited to a Few Brokers

The Securities Commission Malaysia (SC) and Bursa Malaysia jointly announced several measures following the unauthorised trades incident on 24 April 2025. The regulators emphasised their commitment to maintaining market integrity, investor confidence, and cyber resilience. The joint actions include requiring affected brokers to enhance cybersecurity controls, mandating prompt reporting of suspicious activities, and strengthening investor education on online trading safety. The SC and Bursa Malaysia also reiterated the importance of collective industry responsibility in ensuring robust trading system defences.

Date of Release: 25 April 2025 Implementation on: Implementation not expected Applicable to: Brokers and market participants

Bursa Malaysia Announces RM68.4 Million Profit After Tax, Zakat, and Minority Interest for the First Quarter of 2025

Bursa Malaysia reported a profit after tax, zakat, and minority interest of RM68.4 million for the first quarter ended 31 March 2025. The Exchange attributed its performance to healthy trading activity across the securities and derivatives markets, coupled with prudent cost management. Bursa Malaysia reaffirmed its focus on strengthening its core business, driving sustainability initiatives, and supporting the capital market’s long-term growth.

Date of Release: 28 April 2025 Implementation on: Implementation not expected Applicable to: Market participants and listed companies

Bursa Malaysia and BoardRoom Group Collaborate to Scale Adoption of the Centralised Sustainability Intelligence (CSI) Solution

Bursa Malaysia announced a collaboration with BoardRoom Group to promote wider adoption of the Centralised Sustainability Intelligence (CSI) Solution among Malaysian public listed companies (PLCs). The CSI Solution, developed to support Malaysia’s low-carbon transition, helps companies streamline sustainability reporting in line with the International Sustainability Standards Board’s IFRS S1 and S2 requirements under the National Sustainability Reporting Framework. Through this partnership, Bursa Malaysia and BoardRoom aim to strengthen the quality of sustainability disclosures, improve regulatory readiness, and assist companies in navigating evolving reporting requirements. Since its launch in June 2024, about 180 PLCs have adopted the CSI platform, which also offers emissions calculators, supplier management tools, and other value-added services.

Date of Release: 26 May 2025 Implementation on: Implementation not expected Applicable to: Public listed companies, mid-tier companies, and SMEs

Bursa Malaysia Establishes Industry Working Group to Strengthen Cyber Resilience Across the Stockbroking Sector

Bursa Malaysia established an industry working group dedicated to improving cyber resilience within the Malaysian stockbroking ecosystem. The initiative follows the unauthorised trading incident in April 2025 and aims to bolster cybersecurity standards, operational readiness, and regulatory frameworks. The group, chaired by Bursa Malaysia’s Chief Regulatory Officer, includes representatives from bank-backed and non-bank Participating Organisations as well as cybersecurity experts. It will assess existing practices, identify vulnerabilities, and develop industry-wide standards for ICT risk management and incident response. A recommendation paper is expected within four months, after which implementation will begin. Additionally, Bursa Malaysia has mandated all stockbroking firms to implement multi-factor authentication by end-2025 to enhance investor account security.

Date of Release: 20 June 2025 Implementation on: End-2025 (for multi-factor authentication requirement) Applicable to: Stockbroking firms and market participants

Official Launch of Cross-Border QR Payment Phase 2 between Malaysia and Cambodia Bank Negara Malaysia (BNM) and the National Bank of Cambodia (NBC) officially launched Phase 2 of the cross-border QR payment linkage between Malaysia and Cambodia. This initiative allows users from both countries to make and receive instant retail payments via QR codes, enhancing convenience and efficiency in cross-border transactions. The expansion builds upon the success of the initial phase, further promoting financial inclusion and supporting tourism and trade between the two nations.

Date of Release: 2 April 2025 Implementation on: 2 April 2025 Applicable to: Financial institutions, payment service providers, and consumers in Malaysia and Cambodia Bank Negara Malaysia and Bank of Thailand Strengthen Partnership to Enhance Cyber Resilience Bank Negara Malaysia (BNM) and the Bank of Thailand (BOT) signed a Memorandum of Understanding (MoU) to enhance cross-border cooperation on cybersecurity in the financial sector. The agreement aims to strengthen information sharing, crisis management coordination, and joint capacity-building initiatives. Both central banks reaffirmed their commitment to safeguarding financial stability and ensuring the resilience of payment and settlement systems amid evolving cyber threats. Date of Release: 8 April 2025 Implementation on: Implementation not expected Applicable to: Financial institutions under the supervision of BNM and BOT BNM Enhances Flexibility for Corporates with a Full Rollout of the Qualified Resident Investor Programme Bank Negara Malaysia (BNM) announced the full rollout of the Qualified Resident Investor (QRI) Programme to provide greater investment flexibility for Malaysian corporates. The programme allows approved resident corporations to invest abroad more flexibly, subject to prudential safeguards. It aims to support businesses’ diversification and expansion strategies while maintaining sound risk management practices. The move reflects BNM’s commitment to facilitating a more dynamic and outward-looking corporate investment environment. Date of Release: 12 June 2025 Implementation on: 12 June 2025 Applicable to: Resident corporations and institutional investors

Public Consultation Paper No. 1/2025 – Proposed Regulatory Framework for Offering and Dealing in Tokenised Capital Market Products This consultation paper by the Securities Commission Malaysia proposes a regulatory framework for tokenised capital market products, focusing first on digital twin tokens (i.e. tokenised versions of existing securities) while deferring regulation of native tokens for future consideration. It outlines obligations for issuers, recognised market operators (RMOs), licensed persons, and registered persons, covering governance, technology risk, disclosure, record-keeping, third-party service providers, compliance with existing capital markets laws, and the need for consultative engagement with the SC. The framework seeks to balance innovation with investor protection by applying technology-agnostic principles and extending existing securities regulations to the tokenised context. Consultation Period: Comments due by 16 June 2025 Applicable to: Issuers of capital market products, Recognised Market Operators (RMOs), Capital Markets Services Licence (CMSL) holders, and registered persons conducting regulated activities in tokenised capital market products

Public Consultation Paper No. 2/2025 – Proposed Framework for Sustainability Assurance This consultation paper from the Advisory Committee on Sustainability Reporting (ACSR), chaired by the Securities Commission Malaysia, proposes a sustainability assurance framework aligned with international standards. It sets out rules for oversight of assurance providers, competency requirements for assurance engagement leaders, adoption of ISSA 5000 and ISQM 1 standards, and a phased timeline for mandatory external reasonable assurance of sustainability disclosures (including GHG emissions, core content of IFRS S1) for listed issuers and large non-listed companies. Consultation Period: Responses due by 6 August 2025 Applicable to: Main & ACE market listed issuers on Bursa Malaysia, and large non-listed companies with revenue ≥ RM2 billion

Public Consultation Paper No. 3/2025 – Proposed Amendments to Guidelines on Recognised Markets (Digital Asset Exchange) This consultation paper by the Securities Commission Malaysia proposes enhancements to the RMO Guidelines for Digital Asset Exchanges (DAXs), aiming to reinforce investor protection, improve competitiveness, and strengthen the operational resilience of DAX operators. Key proposals include stricter rules on safeguarding client assets (e.g. requiring ≥ 90% of assets in offline wallets and full collateral for hot wallets), enhanced governance controls, revised listing processes (removing SC concurrence for certain listings under a liberalised framework), higher financial and capital requirements, and stricter competency and experience criteria for shareholders and key persons. Consultation Period: 30 June 2025 to 11 August 2025 Applicable to: Operators of digital asset exchanges (DAXs), recognised market operators, and

No consultation found for this quarter