Kuala Lumpur, 9 March 2026 – Malaysia aims to grow its cross-border investment assets to RM110 billion under a new capital market blueprint designed to strengthen the country’s position as a regional financial hub and deepen integration with international markets.
The target forms part of the upcoming Capital Market Masterplan 2026–2030, which will outline strategic priorities for Malaysia’s capital market over the next five years, including expanding overseas investment opportunities and strengthening regional financial connectivity.
The initiative reflects the government’s broader push to position Malaysia as a competitive centre for capital market activities in Southeast Asia while enabling domestic investors to access global investment opportunities.
Expanding Cross-Border Investments
The new masterplan aims to increase the value of cross-border assets under management to RM110 billion by encouraging Malaysian fund managers to expand their regional and international portfolios.
Regulators believe stronger cross-border investment flows will help diversify Malaysia’s capital market while attracting global investors to participate in locally structured investment products.
To support this goal, the Securities Commission Malaysia (SC) is expected to collaborate closely with regulators across the ASEAN region to promote regional investment products and cross-border capital flows.
Such cooperation may include regionally themed investment funds, cross-listing arrangements and mutual recognition frameworks that allow investment products to be distributed across multiple jurisdictions.
Strengthening Malaysia’s Position as a Regional Investment Hub
The capital market masterplan is also expected to build niche strengths in areas such as sustainable finance, ethical investment and infrastructure financing, sectors that are gaining strong demand from global investors.
Malaysia already holds a leading position in Islamic capital markets, particularly in the issuance of sukuk and Shariah-compliant investment products. Expanding cross-border investment activity could further reinforce the country’s role as a gateway for Islamic finance within Asia.
Regulators believe that strengthening these niche segments will allow Malaysia to attract more international capital while supporting domestic economic development.
Capital Market Blueprint for the Next Growth Phase
The upcoming masterplan will succeed the previous capital market development roadmap, which focused on broadening investor participation and improving market accessibility.
The new blueprint is expected to emphasise three major themes shaping global finance:
- Regionalisation of capital markets
- Sustainable and responsible investment
- Digital innovation in financial services
By expanding cross-border assets and strengthening Malaysia’s capital market ecosystem, policymakers aim to ensure the country remains competitive in an increasingly interconnected financial landscape.
Supporting Malaysia’s Economic Transformation
The capital market plays a critical role in Malaysia’s broader economic transformation strategy by mobilising investment into strategic sectors and supporting businesses seeking funding for growth.
Stronger cross-border investment flows can help Malaysian companies expand regionally while also enabling investors to diversify portfolios across global markets.
As Southeast Asia continues to emerge as one of the fastest-growing economic regions, Malaysia’s ability to attract and deploy capital efficiently will be crucial in sustaining long-term economic growth.
