MY Value Up to boost capital allocation methods

CIMB Research said the reform initiative marks a positive step but requires greater clarity to achieve its objectives.

PETALING JAYA: The MY Value Up programme is expected to gradually improve corporate capital allocation practices, although investors may need to remain patient as tangible gains in company valuations are likely to emerge over a longer time horizon.

In the meantime, stock selection is expected to remain centred on companies already demonstrating disciplined capital management and strong shareholder returns.