KUALA LUMPUR: Malaysian companies are increasingly being encouraged to look beyond domestic funding avenues and tap global capital markets, particularly in the United States, as traditional financing channels become more constrained.
At a media luncheon ahead of the Capital Markets & M&A Forum 2026, ARC Group executives said shifting investor priorities and tighter private market conditions are prompting companies to rethink how they raise capital and scale their businesses.
ARC Group partner Datuk Seri Paul Chong said private equity and venture capital funds are becoming more selective, with capital increasingly concentrated in sectors such as artificial intelligence and advanced technologies.
“This makes it more difficult for companies outside these areas to secure funding, especially in emerging markets,” he said, noting that some firms are now being offered structured financing instead of equity investments.
As a result, companies are being pushed to consider earlier entry into public markets, including overseas listings, to sustain growth.
US markets offer deeper liquidity and valuation upside
Chong said listing in the United States offers several advantages, including access to a
broader and more diverse investor base, higher liquidity, and potentially stronger valuations.
He noted that, unlike some regional exchanges, US markets do not impose strict profitability requirements for listings, allowing high-growth companies to raise capital based on future potential.
“There is significantly more liquidity and a wider pool of institutional investors, which enables companies to raise funds more efficiently and return to the market for further financing,” he said.
ARC Group president Sergio Camarero added that the firm has been focused on helping Asian companies, including Malaysian firms, navigate the complexities of cross-border listings and connect with global investors.
Meanwhile, ARC Group Securities chief executive Ian Hanna said the group’s US-based broker-dealer platform plays a key role in facilitating listings on exchanges such as Nasdaq and the New York Stock Exchange, while ensuring compliance with regulatory requirements.
Malaysia is facing a valuation and funding gap
While Malaysia’s capital markets remain active, Chong acknowledged that local exchanges tend to be more conservative in terms of valuation and listing requirements.
This can pose challenges for younger or high-growth companies that may not meet profitability thresholds but require capital to expand.
“There is still a gap between what companies can achieve locally and what they may be able to access globally, particularly in terms of valuation and investor reach,” he said.
He added that companies need to think beyond domestic markets, particularly if local funding options become limited.
Strong investor interest in Malaysia remains
Despite global uncertainties, ARC Group said Malaysia continues to attract investment interest, particularly within South-East Asia.
The firm noted that while global foreign direct investment flows have declined, inflows into ASEAN have remained resilient, with Malaysia seeing significant growth over the past several years.
ARC Group representatives also pointed to increasing interest from investors in sectors such as digital infrastructure, advanced manufacturing and clean energy, driven in part by supply chain diversification and geopolitical shifts.
Forum to spotlight cross-border capital opportunities
The Capital Markets & M&A Forum 2026 – Malaysia Edition will take place on May 7 at EQ, Equatorial Plaza, Kuala Lumpur, bringing together senior executives, investors and advisors from across the region.
The programme will feature keynote presentations and panel discussions covering global capital markets trends, cross-border mergers and acquisitions, and strategies for companies seeking international listings.
A key highlight will be participation from Nasdaq, where representatives are expected to share insights on IPO readiness, investor engagement and pathways for South-East Asian companies to access US capital markets.
ARC Group said the forum aims to serve as a platform to connect Malaysian and regional companies with global investors, amid growing interest in cross-border dealmaking and international expansion.
