CMP To Boost Vibrancy Of Malaysia’s Capital Market -- MBSB

KUALA LUMPUR, March 10 (Bernama) -- MBSB Investment Bank Bhd is positive on the Capital Market Masterplan (CMP) 2026–2030, saying the blueprint could enhance the vibrancy of Malaysia’s capital market.

In a research note today, the bank said the 2030 targets, including a market size of RM5.8 trillion - RM6.3 trillion, are ambitious but achievable given the strong baseline of RM4.3 trillion in 2025, equivalent to about 2.1 times gross domestic product.

However, it said the CMP’s upper-bound 2030 scenario of a RM6.3 trillion market size would depend on whole-of-nation alignment, including calibrated tax and investment incentives, continued reforms, pragmatic capital account flexibility, and clear policy signals on sustainability, artificial intelligence (AI) and digitalisation.

“The key to successful implementation is execution.

“Nevertheless, the reward for disciplined execution is meaningful — a market that allocates capital to its highest and best use, broadens participation and retirement security for Malaysians, channels funding to climate transition and resilience, and serves as a gateway for ASEAN and Asia at large,” it said.

The bank also views the 'MY Value Up' programme as the CMP’s centrepiece for public markets.

It said the initiative rightly places responsibility on boards and management to deliver value creation, introduces clear key performance indicators, including total shareholder return, return on invested capital (ROIC) and innovation, and proposes incentives such as a premium index and fee rebates, alongside stricter measures for persistently non-compliant or dormant public listed companies.

“The planned early-warning supervision and action-plan windows can prevent value destruction from becoming chronic,” it said.

Overall, the bank said 'MY Value Up' could raise market quality and valuations if paired with expectations under the Malaysian Code on Corporate Governance, as well as with improved research coverage for small- and mid-cap companies, so that operational progress translates into price discovery.

“We also believe this could encourage corporates to pursue more efficient balance sheets going forward, including improvements in shareholding metrics such as shares outstanding and share capital,” MBSB said.

While positive on the CMP’s long-term prospects, the bank noted that markets are currently facing short-term headwinds, mainly from geopolitical tensions and the conflict involving Iran and US-Israel.

It said these developments are likely to remain a key influence on markets until hostilities cease, although the duration of the conflict remains uncertain.

Given the uncertainty, the bank recommended investors tactically seek shelter in defensive sectors.

These include real estate investment trusts, utilities, healthcare and consumer staples, which typically offer stable earnings and consistent dividends regardless of broader market conditions.

“We also believe investors may take a trading view on oil and gas stocks,” it added.

-- BERNAMA