Bursa Malaysia courts young firms and investors in bid to rejuvenate local stock market

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Bursa Malaysia is aiming to list 42 companies in 2024.

SINGAPORE – Malaysia’s stock exchange wants to list more small and medium-sized enterprises as it takes steps to bring younger companies, as well as a new generation of investors, to the local stock market, a senior executive at the bourse said.

But Mr Umar noted that Malaysia is backed by a growing real economy, and foreign investors have been returning to the market.The country’s benchmark stock index is up by more than 20 per cent since January, closing at 1,596.68 on May 31. Meanwhile, shares of Bursa Malaysia have jumped by 22 per cent since May.

Malaysian companies that have secondary listings on the SGX include glovemaker Top Glove, IHH Healthcare, oil palm plantation TSH Resources and Malaysia Smelting Corp. In December 2023, Bursa Malaysia and credit ratings firm RAM Holdings launched a debt fund-raising platform for SMEs, allowing them to raise debt funding of up to RM5 million over a minimum tenure of one year.

A liquid market allows transactions to be completed quickly and at stable prices. Companies with liquid stocks can also draw more investors, enhancing their ability to raise capital.

 

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