KUALA LUMPUR: Bursa Malaysia Bhd
and FTSE Russell will expand the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) to 50 constituents from 30 currently, as part of changes aimed at better reflecting the growth and diversification of the Malaysian equity market.
The changes will be implemented in two phases beginning Dec 21, 2026, following a public consultation held between March 31 and April 24.
In a joint statement, Bursa Malaysia and FTSE Russell said the expanded FBM KLCI would increase its representation of Main Market capitalisation to about 70% from 60%, based on simulations using June 2026 data.
The FTSE Bursa Malaysia Mid 70 Index (FBM70), meanwhile, will be reduced to 50 constituents from 70 and renamed the FTSE Bursa Malaysia Mid Cap Index (FBMMCAP).
The FTSE Bursa Malaysia Top 100 Index will remain unchanged at 100 constituents.
Bursa Malaysia chief executive officer Datuk Fad’l Mohamed said Malaysia's equity market had evolved considerably, with growth sectors gaining scale alongside established sectors.
“By increasing representation across sectors and companies, the enhanced FBMKLCI will provide a broader reflection of Malaysia's economic landscape while preserving the relevance investors expect from our flagship benchmark,” he said.
He added that the changes would increase the visibility of a wider range of Malaysian companies.
Meanwhile, FTSE Russell group head of equity and multi assets Gerald Toledano said the enhancements would help ensure Malaysia's flagship benchmark remained “representative, investable and aligned with the needs of domestic and international investors.”
“The strong support received during the consultation process underscores the importance of maintaining benchmarks that keep pace with market developments. We look forward to working closely with Bursa Malaysia and market participants to support a smooth transition and implementation of these changes.”
Based on simulations using data as at end-June 2026, the expanded FBM KLCI would include technology, energy and real estate investment trusts (REITs) for the first time, while reducing the concentration of financial services stocks.
Bursa Malaysia and FTSE Russell said the actual constituent and sector composition would depend on eligibility at the relevant review dates.
Under the first phase, effective Dec 21, the 20 new constituents will be added to the FBM KLCI at 50% of their final index weight.
In the second phase, effective June 21, 2027, the new constituents will reach 100% of their final index weight, completing the expansion to 50 stocks.
The FBM70 will be reduced to 50 constituents on Dec 21 in conjunction with the index review.
Bursa Malaysia and FTSE Russell said the phased implementation would help reduce concentrated trading flows and minimise market impact while facilitating portfolio rebalancing.
The expansion marks the first change to the FBM KLCI's methodology since July 2009, when the benchmark was reduced from 100 constituents to its current 30.
