PETALING JAYA: Analysts are positive about the newly launched Capital Market Masterplan 2026-2030 (CMP4), viewing it as a significant step toward strengthening the country’s capital market ecosystem and improving the valuation of listed companies.
CIMB Research described CMP4 as a roadmap aimed at expanding the capital market from about RM4.3 trillion currently to between RM5.8 trillion and RM6.3 trillion by 2030, implying a growth rate of roughly 6% to 8% annually.
The masterplan is designed to deepen market participation, broaden funding channels and strengthen the country’s position as a regional capital market hub.
A central component of the strategy is the MY Value Up programme, which seeks to address the long-standing issue of subdued valuations among listed companies.
“We view the MY Value Up programme as a potential catalyst for a market re-rating by improving corporate performance, governance and transparency, which could strengthen investor confidence and attract more capital to Malaysia.
“However, near-term market sentiment may remain weak owing to escalating Mid-East tensions and higher oil prices, which could raise inflation and weigh on global growth,” it said.
In line with this, the research house has maintained its FBM KLCI target of 1,754 points and advised investors to stay defensive until geopolitical risks ease.
Similarly, an analyst told StarBiz: “While the blueprint is ambitious and structurally positive, its success will ultimately hinge on execution and the ability to navigate near-term geopolitical uncertainties.”
MBSB Research viewed the masterplan positively, describing it as both a long-term vision extending to 2045 and a five-year action plan intended to translate policy ambitions into measurable outcomes.
By the end of 2025, Malaysia’s capital market had reached RM4.3 trillion, equivalent to about 2.1 times gross domestic product and larger than the country’s banking assets.
“We believe that the 2030 targets such as the RM5.8 trillion to RM6.3 trillion market size are ambitious but not outlandish, given the strong baseline.
“However, the CMP’s upper bound 2030 scenario (RM6.3 trillion market size) will depend on whole nation alignment such as calibrated tax and investment incentives, continued transformation, pragmatic capital account flexibilities, and clear policy signals on sustainability, artificial intelligence and digital,” it said.
Within public markets, MY Value Up is seen as the masterplan’s centrepiece.
MBSB Research emphasised that the initiative placed clear responsibility on boards and management to deliver stronger corporate performance, supported by measurable key performance indicators and improved disclosure to investors.
The programme also introduced a differentiated approach depending on the condition of listed companies, with specific measures for undervalued firms, low-liquidity counters and weaker companies requiring structured turnaround plans.
To reinforce the initiative, regulators could introduce incentives such as a premium index highlighting high-performing companies, listing fee rebates or subsidised advisory support.
At the same time, authorities may tighten oversight of persistently underperforming or dormant listed companies, including potentially enhanced statutory powers to oversee orderly exits where necessary.
MBSB Research said such measures could help lift valuations and improve market quality, particularly if accompanied by stronger governance requirements and better research coverage for small and mid-cap companies.
An analyst with a local research house, however, expected bouts of market volatility and recommended investors seek shelter in defensive sectors such as utilities, real estate investment trusts, healthcare and consumer staples while maintaining a “tactical trading” view on oil and gas stocks.
