KUALA LUMPUR: The simplified dual initial public offering (IPO) listing framework between Malaysia and Hong Kong will take effect next month, further strengthening capital market linkages between the two economies.
Transport Minister Anthony Loke Siew Fook said the framework was among the latest developments in Malaysia-Hong Kong economic ties, following a memorandum of understanding (MoU) signed by the Securities Commission Malaysia (SC) and Hong Kong’s Securities and Futures Commission on July 23.
"The MoU widens mutual recognition of funds to cover exchange-traded funds (ETFs) and real estate investment trusts (REITs), and opens a simplified dual IPO listing framework that will come into effect next month,” he said.
He said this in his special remarks at the opening session of "Think Business, Think Hong Kong 2026” here today.
Loke said Bursa Malaysia had also been recognised as a Recognised Stock Exchange by Hong Kong Exchanges and Clearing Ltd (HKEX), enabling public limited companies listed on Bursa Malaysia to apply for a secondary listing in Hong Kong.
He said the development would provide Malaysian companies with greater access to Hong Kong’s capital market and investors.
"Regulators can sign agreements and governments can open offices, but none of it counts until a Malaysian company actually files for that dual listing, or a Hong Kong fund manager actually brings a product to Malaysian investors,” he said.
Loke also highlighted the growing connectivity between Malaysia and Hong Kong, noting that Kuala Lumpur and Hong Kong are less than four hours apart by air and share the same time zone.
He said Cathay Pacific had added a fourth daily service on the Kuala Lumpur-Hong Kong route since March, reflecting growing commercial demand, while Malaysia Airlines added direct services from Kuala Lumpur to Shenzhen and Changsha in July, bringing its Greater China network to nine gateways.
On cargo connectivity, Loke said Hong Kong International Airport was among the world’s busiest cargo gateways, while Port Klang sits along one of the world’s most heavily used shipping lanes.
He said the combination of Hong Kong’s strengths in logistics, trade finance, arbitration and professional services with Malaysia’s growing exports of electronics, semiconductors and other high-value goods presented further opportunities for businesses in both markets.
Loke also urged businesses attending the symposium to leverage the opportunities created through the closer capital market linkages between Malaysia and Hong Kong.
He said the relationship between the two economies was considerably stronger than commonly perceived, with Hong Kong having been among Malaysia’s significant investors for decades, while Malaysia is among Hong Kong’s leading trading partners in ASEAN.
He added that closer cooperation in capital markets, trade and investment would continue to strengthen economic ties between Malaysia and Hong Kong.- Bernama
