Capital Markets

Capital Market Masterplan 2

The Capital Market Masterplan 2 (CMP2) was built based on the foundation in the Capital Market Masterplan 1 (2001-2010) that aimed to create a capital market that would be competitive in meeting the country’s capital, and investment needs to support long-term nation-building efforts.

CMP2 outlines the strategies to transform the competitive dynamics of the capital market over the next ten years. It outlines growth strategies to address critical structural challenges and essential linkages to foster a more diverse and innovative intermediation environment and to nurture new growth opportunities that would expand Malaysia’s capital markets.  Additionally, CMP2 outlines governance strategies to ensure robust regulatory oversight and active stakeholder participation to enhance confidence in the integrity and soundness of Malaysia’s capital market.

Financial innovation can create market-based solutions to mobilize investments in technology and projects that promote sustainable and inclusive development. There is room to expand the role of the capital market in developing innovative approaches to finance environmental projects such as the development of alternative energy sources or clean technologies. A broad range of financing instruments can also be designed to finance community infrastructure development and the building of educational, healthcare and cultural facilities. The momentum of socially responsible investing (SRI) funds reflects the growing interest of institutional investors to build a sustainable economy that generates long-term wealth.

Capital Market Masterplan 2 (CMP2)

Policy/Measure owner

Securities Commission Malaysia

Launch date

12 April 2011

To create a conducive environment to enlarge the role of the private sector and the financing of entrepreneurial and innovative economic activities that are critical to the future of the Malaysian economy
Time frame
Ten years
Key targets/focus areas


  • Promote capital formulation
  • Expand intermediation efficiency and scope
  • Deepen liquidity and risk Intermediation
  • Facilitate internationalization
  • Build capacity and strengthen information infrastructure


  • Enhance product regulation to manage risks
  • Expand accountabilities as intermediation scope widens
  • A robust regulatory framework for a changing market landscape
  • Effective oversight of risks
  • Strengthen corporate governance
  • Broaden participation in governance
Key stakeholders

Capital markets

Sustainable and Responsible Investment for the Malaysian Capital Market

On 26 November 2019, the Securities Commission Malaysia (SC) launched the Sustainable and Responsible Investment Roadmap for the Malaysian Capital Market (SRI Roadmap) to boost the development of the SRI ecosystem. The SRI Roadmap is pivotal in charting the role of the capital market in driving Malaysia’s sustainable development.

The five-year SRI Roadmap identified 20 strategic recommendations, which maps against the 5i-Strategy introduced by the SC in 2014. The 5i-Strategy was fundamental in driving the development of a facilitative SRI ecosystem in the Malaysian capital market. It focused on widening the range of SRI instruments, increasing SRI investor base, building a strong SRI issuer base, instilling influential internal governance culture, and designing information architecture in the SRI ecosystem.

The SRI Roadmap builds on SC’s initiatives to strengthen Malaysia’s position as a regional leader in sustainable investment.

Sustainable and Responsible Investment (SRI) Roadmap

Policy/Measure owner

Securities Commission Malaysia

Launch date

26 November 2019

To create a facilitative SRI ecosystem and chart the role of the capital market in driving Malaysia’s sustainable development.
Time frame
Five years
Key targets/focus areas
  • Widening the range of SRI instruments
  • Increasing SRI investor base
  • Building a strong SRI issuer base
  • Instilling strong internal governance culture
  • Designing information architecture
Key stakeholders
Industry representatives, Associations and Regulatory bodies

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