This article seeks to unpack the CMP4 objectively, the issues it addresses and what it does not. And whether the measures as outlined can really fix what has ailed Bursa for more than a decade.
The strategies outlined in Malaysia’s Capital Market Masterplan 2026-2030 (CMP4) released by the Securities and Exchange Commission in March checked many of the boxes as one would expect from similar mid- to long-term blueprints; that is, in terms of vision, broad guidelines and goals. The overarching target is to grow the nation’s capital market at a faster pace than gross domestic product (GDP) and to reach RM5.8 trillion ($1.87 trillion) to RM6.3 trillion by 2030, from RM4.3 trillion in 2025. Whether the actual policy measures — and how well they are executed — bring the desired outcomes, however, remains to be seen. The proof, as they say, is in the pudding.
We have written many articles on the reasons behind Bursa Malaysia’s chronic underperformance. The biggest of these are corporate governance, specifically the lack of trust that boards and management will maximise value for all shareholders; the number of investable (quality) companies in terms of growth, size and liquidity as well as government-linked investment company/government-linked company (GLIC/GLC) dominance on Bursa, their weak returns and conflicting mandates. And last but not least, initial public offerings (IPOs) in Malaysia that are often exit strategies for near-mature businesses rather than fundraising for start-ups and high-growth companies. This leads to poor performance post-IPO, in terms of both profit and share price, further denting investor confidence in the broader market.
