Bursa Malaysia Strengthens Cooperation With Regulators To Reduce Risk Of Foreign Fund Sell-Offs

KUALA LUMPUR, Nov 6 (Bernama) — Bursa Malaysia, together with regulatory authorities, is working closely to enhance market efficiency, vibrancy, and accessibility for investors — including foreign investors — to reduce the risk of sell-offs and foreign fund outflows from the equity market.

The Ministry of Finance (MoF) said Bursa Malaysia is actively engaging and collaborating with intermediaries to facilitate access and information sharing with foreign investors through programmes such as Invest Malaysia (IM) and IM Away.

According to the ministry, these programmes are specifically designed to enhance Malaysia’s profile and visibility, as well as that of its public-listed companies, among foreign investors, while encouraging demand for the various opportunities available in the market through continuous investor relations engagement.

“In addition to traditional marketing and promotional efforts, Bursa Malaysia has focused on core areas and initiatives aimed at strengthening competitiveness relative to regional peers.

“These include advancing the environmental, social and governance (ESG) and sustainability agenda for the capital market; introducing the Bursa Research Incentive Scheme Plus (RISE+); and implementing the IR4U Programme,” it said in a reply published on the Parliament’s website today.

The ministry was responding to a question from Datuk Azman Nasrudin (PN-Padang Serai) regarding the main factors, both global and domestic, that have contributed to foreign fund sell-offs and withdrawals from the local stock market.

He also asked about measures that could be taken by the relevant authorities to mitigate such risks.

The MoF added that this integrated effort reflects the government’s (Ministry of Finance’s) and market authorities’ (Securities Commission and Bursa Malaysia) ongoing commitment — alongside industry players — to maintain stability, enhance investment attractiveness, and strengthen Malaysia’s position as a leading investment destination in the region.

Meanwhile, the ministry noted that the United States’ monetary policy supporting a 25-basis-point reduction in the federal funds rate in mid-September 2025 has been a key catalyst for improving sentiment across emerging markets.

“Investors view this move as a signal that the Federal Reserve may adopt a policy of maintaining low interest rates, thereby increasing interest in equities in markets such as Malaysia,” it said.

— BERNAMA 

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