KUALA LUMPUR: Malaysia is increasingly being viewed as a two-way capital market — one where high-growth companies are looking outward to access global liquidity, while international investors are looking inward, drawn by the country’s strong fundamentals and its growing role as a strategic hub in South-East Asia.
That was the central message from senior executives at ARC Group at a closed-door media luncheon in Kuala Lumpur on Tuesday (May 5), held on the eve of the Capital Markets & M&A Forum 2026, where the firm outlined how the capital markets landscape is evolving for Malaysian and regional companies.
ARC Group Partner Datuk Seri Paul Chong said the tightening of private markets is not a temporary cycle — it is a structural shift that Malaysian businesses must plan around.
“Private equity and venture capital are concentrating their firepower in AI and advanced technology. For companies outside those areas, the funding environment has become genuinely difficult,” he said, adding that some firms are now being offered structured debt instead of equity — a sign that traditional investors are pulling back.
The result, he said, is that companies can no longer afford to wait for the right moment to approach public markets. The decision to list — and where to list — now needs to be made earlier and more deliberately.
US markets offer deeper liquidity and valuation upside
For ARC Group Securities CEO Ian Hanna, the case for a US listing goes beyond just access to capital.
“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.
Hanna noted that US exchanges such as Nasdaq and the New York Stock Exchange do not impose the same profitability thresholds as some regional bourses, making them accessible to high-growth companies that are still in their expansion phase.
Nigel Wong, Head of Asset & Wealth Management at ARC Group, said the cross-border listing process is more accessible than many local companies realise.
“We have been helping Asian companies navigate these complexities for years. The pipeline from Southeast Asia to global capital markets is real, and it is growing,” Wong said.
The valuation gap Malaysian companies cannot ignore
Datuk Seri Paul Chong was direct about the limitations of Malaysia’s domestic capital markets for certain categories of companies.
“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.
Local exchanges, he noted, tend to apply more conservative valuation frameworks and stricter listing criteria — conditions that can disadvantage fast-growing businesses that do not yet meet profitability thresholds but have strong growth trajectories and international ambitions.
His advice to Malaysian entrepreneurs was clear: think beyond the domestic market before the funding window narrows, not after.
Malaysia remains a bright spot for inbound capital
The capital flow, the executives stressed, is not only outbound. Malaysia itself has become one of the most attractive destinations for foreign direct investment in South-East Asia, driven by its position as a beneficiary of supply chain diversification, growing digital infrastructure investment, and a stable regulatory environment.
ARC Group noted that while global FDI flows declined in 2024, inflows into ASEAN — and Malaysia in particular — remained resilient. Sectors drawing the most attention include digital infrastructure, advanced manufacturing and clean energy.
Nigel Wong, Head of Asset & Wealth Management at ARC Group, said the firm is seeing growing appetite from international family offices and institutional investors looking to deploy capital into ASEAN-focused opportunities — a trend he expects to accelerate as Malaysia’s profile as a regional hub continues to rise.
“The conversation is no longer one-directional. We are seeing genuine two-way interest — Malaysian companies wanting to go global, and global investors wanting exposure to Malaysia and South-East Asia,” Wong said.
For ARC Group, that two-way flow is precisely where the firm operates: helping Malaysian companies access global markets, while connecting international capital with ASEAN’s most compelling growth opportunities.
Forum to deepen the conversation
The Capital Markets & M&A Forum 2026 – Malaysia Edition takes place on May 7 at EQ, Equatorial Plaza, Kuala Lumpur.
The forum will bring together senior executives, investors and advisors from across the region for panel discussions on global capital markets trends, cross-border M&A, and international listing strategies. Nasdaq will also participate, with representatives sharing insights on IPO readiness and investor engagement pathways for South-East Asian companies.
