Better for Bursa in 2026

THE average trading volume may have decelerated for much of this year, but Malaysia’s key economic and policy initiatives will help market liquidity to improve in 2026, Bursa Malaysia Bhd says.

The exchange says Budget 2026 measures, the Visit Malaysia Year 2026 campaign and the 13th Malaysia Plan (13MP) target of 4.5% to 5.5% annual gross domestic product (GDP) growth from 2026 to 2030 can stimulate economic activities and bolster investor confidence.

“These factors provide a favourable backdrop for equity markets. Growth is likely to be led by high-value manufacturing and services, underpinned by investment, digital transformation, and domestic demand, with contribution from export activity,” Bursa Malaysia tells StarBiz 7 in an email interview.

The country’s investment environment will need Bursa Malaysia’s optimism to rub off on it, particularly after the exchange itself posted softer earnings for the third quarter ended September (3Q25).

Bursa has attributed the results to global developments that have impacted market sentiment for the first nine months of the year.

On the other hand, its chief executive Datuk Fad’l Mohamed said in a press release on the exchange’s 3Q25 results that there is already improvement as greater clarity emerged from the United States tariff negotiations, with the Securities Market trading revenue rising 13.3% quarter-on-quarter.

Building up from a subdued 9M25

Expounding further on the slower trading activity seen for the first three quarters of the year (9M25), Bursa Malaysia observes that the moderation in its 3Q25 Securities Market results was due to last year’s high levels, and cautious investor sentiment.

Global uncertainties and tariff- related volatility also led to a decline in average trading volume.

“The cautious sentiment is observed in the regional markets and is not specific to Bursa Malaysia.

“Investors gravitated towards defensive and domestic-driven sectors where banking and financial sectors remained resilient.

“Construction sectors benefited from infrastructure and data centre investments, while utilities and property sectors delivered a moderate recovery driven by digitalisation trends,” it points out.

Offering a deeper analysis of its performance up to September, Bursa Malaysia reports that derivatives trading and Islamic capital markets had demonstrated resilience, revealing that there was robust activity in crude palm oil futures, while Islamic market products such as Bursa Suq Al-Sila also recorded an increase in average trading volume.

“Bursa Gold Dinar trading more than doubled, underscoring the benefits of Bursa Malaysia’s multi-asset strategy,” it adds.

The exchange says it is taking decisive steps, focusing on innovation and diversification to strengthen resilience and unlock new growth opportunities.

In addition, Bursa Malaysia says it is maintaining its position as one of the most active initial public offering (IPO) markets in Asean.

“One key driver has been the improvement in the ACE Market process.

“Since 2022, Bursa Malaysia has served as the one-stop centre for ACE IPO approvals and prospectus registration. This streamlined structure has made the process faster, clearer, and more predictable.

As a result, ACE listings have been robust, strengthening the longer-term Main Market pipeline,” says the exchange.

Adjustment of pre-tax profit target

Despite keeping its IPO target intact, Bursa Malaysia has notably lowered its pre-tax profit target by 15% to RM314mil for 2025.

This move, it says, reflects prudence and aligns with market conditions for the year.

“When the initial pre-tax profit target was set, the uncertainties surrounding global trade were less pronounced, as it was prior to tariffs announced by President Donald Trump,” says Bursa Malaysia.

However, it still believes that investor confidence in Malaysia’s capital markets remains intact, because 3Q25 has shown encouraging signs of recovery, including improving economic indicators and a quarter-on-quarter increase in average trading volume.

The exchange expects gradual recovery in the quarters ahead thanks to policies and initiatives to stimulate key sectors.

These include the implementation of major frameworks like the New Industrial Master Plan 2030, National Energy Transition Roadmap, and National Semiconductor Strategy, which are all central to the 13MP.

Benchmarking against other bourses

Bursa Malaysia says its strategy to drive market vibrancy and position the exchange as the preferred fundraising platform is anchored on creating long-term value for its stakeholders.

It focuses on companies that meet robust disclosure and quality standards, which it says is a critical factor for sustainable growth, as this ensures that listings attract long-term institutional investors.

“The exchange has streamlined the ACE Market process, making it faster and more predictable, which has helped more companies access capital efficiently,” it says.

Meanwhile, Bursa Malaysia says it is actively working with government agencies, principal advisers, and industry stakeholders to bring large-cap and strategic listings to market, including sectors aligned with national priorities such as energy transition, industrial transformation, and semiconductors.

“For instance, SkyeChip Bhd, a leading Malaysian semiconductor design company focused on artificial intelligence and high-performance chips, is planning a Main Market listing, which reflects confidence in Bursa Malaysia,” it says.

International appeal is another differentiator, says the exchange, as it draws attention to precision engineering player UMS Integration Ltd, who in August this year became the first Singapore Exchange-listed company to secure a secondary listing on Bursa Malaysia.

Bursa Malaysia says this signals that regional issuers see value in tapping Malaysia’s investor base for liquidity and future fundraising.

It adds: “This cross-border listing capability positions Bursa Malaysia as a gateway for companies seeking diversified capital pools within Asean.”

Bursa Malaysia remains confident in sustaining this momentum into 2026, supported by a strong IPO pipeline of companies across sectors.

“In addition, we will continue to capitalise on our position as the preferred platform for syariah-compliant listings and investing.

“As at Oct 31, approximately 80% of companies listed in Bursa Malaysia and 65.8% of the daily trading value are syariahcompliant,” it says.

2026 and beyond

Bursa Malaysia expects trading vibrancy to keep up in 2026 as global trade conditions stabilise, premised on positive sentiment from accommodative monetary policy and foreign fund inflows that should support improvement in equity volumes.

Derivatives are expected to sustain momentum, while new business initiatives will continue to drive revenue diversification.

“Retail participation is projected to grow in 2026, aided by low-cost digital trading platforms, extensive investor education and engagement, and targeted products such as Exchange Traded Funds and structured warrants.

These initiatives aim to build long-term confidence among retail investors, lower barriers to entry, and attract younger participants,” it says.

More importantly, it projects that foreign investor interest is anticipated in sectors such as technology and renewable energy.