Despite weaker trading volumes, Bursa secures strong IPO momentum and eyes recovery in H2 2025.
Bursa Malaysia is emerging as a top IPO destination in Southeast Asia, drawing interest from Singapore-based companies despite a profit dip and ongoing market volatility.
Singapore Companies Eye Bursa Listings
Bursa Malaysia has become an attractive listing venue for Singapore companies seeking secondary or dual listings. Recent interest comes from firms like UMS Integration, which debuts on August 1, supported by a market-making arrangement. Oiltek International and Q&M Dental Group have also proposed secondary listings, signaling strong regional confidence in Malaysia’s capital market.
CEO Fad’l Mohamed highlighted the exchange’s IPO leadership in ASEAN, capturing over 67% of IPO proceeds in the first half of 2025. With 32 IPOs raising RM4 billion, Bursa outperformed its 2024 figures and is on track for 60 listings and RM40.2 billion in market capitalization by year-end.
Profit Dip From Lower Trading Activity
Despite its IPO success, Bursa’s H1 2025 net profit fell 19.3% year-on-year to RM125.5 million, with revenue sliding 7.8% to RM357 million. Weaker trading volumes and a 24% drop in securities trading revenue weighed on performance.
Average daily trading value declined to RM2.5 billion, while trading velocity dropped to 32%. Nevertheless, the bourse declared a 14 sen interim dividend, reflecting a 90% payout ratio.
H2 2025: Optimism and Strategic Focus
Fad’l remains optimistic about the second half, expecting improved market sentiment and increased cash deployment by fund managers. He noted that local funds are holding record cash levels, positioning the market for a potential rebound.
Bank Negara Malaysia’s recent interest rate cut and the KLCI trading at a 17% discount to its 10-year average also support expectations for stronger liquidity.
Diversifying Revenue Streams
Bursa is expanding its non-trading income to mitigate market volatility, targeting 5–7% growth by year-end and double-digit growth over the next three years. Segments like derivatives, Islamic capital markets, and data services reported healthy gains, driven by crude palm oil futures trading and rising demand for sustainability data.
Additionally, strategic initiatives such as the Vibrancy Initiative Programme and Sustainability Accelerator Programme aim to enhance liquidity and climate-related disclosures.
Positioning for Future Growth
Looking ahead to 2025–2026, Bursa’s six strategic pillars will reinforce its role as a fundraising platform, leverage technology, and advance sustainability. Plans include boosting SME listings, expanding the Bursa Carbon Exchange, and developing products in gold and Shariah-compliant markets.
Despite a challenging start to the year, Bursa is confident of achieving its profit-before-tax target of RM369 million to RM408 million. The bourse is betting on improved sentiment and upcoming IPOs to drive growth into 2026.
Bursa Malaysia’s resilience, strong IPO pipeline, and strategic focus are attracting Singaporean firms despite current profit pressures. For regional investors, these developments reaffirm Malaysia’s position as a competitive capital market hub poised for recovery.
Sources: Business Times (2025), , The Edge Malaysia (2025)
Keywords: Bursa Malaysia, IPO Market, Singapore Firms, ASEAN Economy, Market Sentiment
