KUALA LUMPUR: The Securities Commission Malaysia (SC) aims to strengthen capital market connectivity, attract long-term international investors and build a more integrated regional investment ecosystem.
Today’s signing of a memorandum of understanding (MoU) with the Hong Kong Securities and Futures Commission (SFC), SC chairman Datuk Mohammad Faiz Azmi said, aligns with the aspirations of the SC’s Capital Market Masterplan 2026-2030.
He said the agreement is a practical framework between the SC’s jurisdictions to facilitate initial public offering (IPO) dual listings, both primary and secondary, mutual recognition of investment funds and expanded cross-border investment opportunities and regulatory collaboration.
According to Faiz, the framework will expand investment opportunities for investors in both markets.
He noted that Hong Kong Exchanges and Clearing hosts more than 2,900 listed companies, exchange-traded funds (ETF) and real estate investment trusts, while Bursa Malaysia offers more than 1,130 comparable investment products.
“It also offers a potentially extensive range of options for investors in both countries. We hope that market players will leverage this arrangement to introduce more bespoke regionally-focused offerings including ETFs,“ he said at the signing ceremony.
Faiz said the collaboration is expected to spur greater foreign portfolio investment between the two markets while enhancing issuers’ access to regional investors and capital. “Other developmental objectives include enhancing issuer access to regional investors and capital and providing participating asset managers greater distribution opportunities.”
The success of the partnership should not be judged solely by improvements in market liquidity or connectivity, Faiz said. “Ultimately, success will be measured not only by headline indicators such as market liquidity and connectivity. It will also be the opportunities and benefits created on the ground for businesses, investors and the industry.”
Describing Hong Kong as a natural partner in realising this vision, Faiz said the city has strengthened its position as one of Asia’s leading international financial centres and remains a well-established fundraising hub with a deep institutional base.
He added that Malaysia complements Hong Kong as a gateway to Asean, supported by a diverse and well-regulated capital market.
“As a global leader in Islamic capital market products, we offer a competitive edge in ethical and sustainable investments, making us well-placed to advance the global sustainability agenda,“ Faiz said.
The complementary strengths of both markets will strengthen regional financial integration, the SC chairman said.
“Together, we can create compelling investment pathways that connect Asean, Greater China and the wider Asian region,“ he said.
Faiz noted that the MoU builds on a long-standing relationship between the two regulators through cooperation under the International Organization of Securities Commissions, regular bilateral engagements and exchanges of regulatory expertise.
“Today’s signing is therefore a natural next step in our collaboration,“ he said.
Calling on all stakeholders to ensure the partnership delivers meaningful results, Faiz urged regulators, exchanges, intermediaries and investors to work together. “We must work together to translate today’s commitments into tangible outcomes that create lasting value for both our markets and economies.”
Under the simplified dual IPO listing framework, companies seeking simultaneous listings in Malaysia and Hong Kong will be able to submit a single set of offering documents, including a prospectus, to both regulators.
The mutual recognition framework will also allow ETF and REIT authorised in either jurisdiction to be offered to investors in the other market through a secondary listing, subject to regulatory requirements.
