Bursa Malaysia Chairman Optimistic IPO Market Will Remain Resilient Amid Global Headwinds
Despite Global Uncertainties, IPO Market Expected to Remain Resilient
Despite persistent global uncertainties and external shocks, Malaysia’s initial public offering (IPO) market is expected to remain resilient with continued listings throughout the year, said Bursa Malaysia chairman Tan Sri Abdul Wahid Omar.
Building Resilience Among Malaysian Companies and the Broader Economy
He acknowledged the prevailing turbulence in the global economy stemming from fluctuating tariffs, policy shifts and geopolitical tensions.
“On global headwinds and turbulence, we do not really know what will be coming next because of what is being implemented and adjusted. However, the importance is on building resilience among Malaysian companies and the broader economy,” he told reporters at the Bursa Malaysia, Economic Club Kuala Lumpur and CIMB roundtable today.
Public Listed Companies Transformation Programme
Central to this effort is the Public Listed Companies Transformation Programme, which was launched three years ago to enhance their fundamentals and performance.
“The programme now includes 326 companies, representing 64% of the total market capitalisation. It focuses on five key areas, including being purpose-driven, improving performance, enhancing ethics, prioritising environmental, social and governance and deepening investor engagement,” he noted.
Strong Fundamentals Can Mitigate External Shocks
The Bursa chairman expressed optimism on strong fundamentals, companies can mitigate the impact of external shocks.
“If listed companies continue to focus on their fundamentals and performance, the effects of externalities can be minimised,” he said.
IPO Pipeline Remains Resilient
Abdul Wahid also addressed concerns about how current uncertainties may affect the IPO pipeline.
“Last year, we successfully listed 55 companies. This year, we are targeting 60. So far, 15 companies have been listed – two on the Main Market and 13 on the ACE Market. Another company, MSG Global Bhd, will be listed on April 15, bringing the total to 16,” he said.
US Tariffs and Sector-Specific Impact
On the issue of US tariffs and their sector-specific impact, he said the effects vary depending on the industry.
“In sectors like electronics, there are still many exemptions, so the impact is currently minimal. But the volatility and policy changes create uncertainty, particularly in terms of production and order flows.”
Trade Discussions and Maintaining a Balanced Diplomatic and Trade Stance
Looking ahead to Malaysia’s participation in trade discussions in Washington on April 23, Abdul Wahid reiterated the importance of maintaining a balanced diplomatic and trade stance.
“It is crucial for Malaysia to continue positioning itself as a neutral country, not aligned to any single bloc. We must engage with all parties and continue expanding Asean and bilateral trade relations. Any decisions in international negotiations must be grounded in Malaysia’s national interest. Whatever we manage must be based on the interest of Malaysia as a country,” he said.
Conclusion
In conclusion, despite the prevailing global uncertainties and external shocks, Bursa Malaysia chairman Tan Sri Abdul Wahid Omar remains optimistic about the IPO market’s resilience. With the Public Listed Companies Transformation Programme and strong fundamentals, companies can mitigate the impact of external shocks. The IPO pipeline remains resilient, and Malaysia’s participation in trade discussions will be crucial in maintaining a balanced diplomatic and trade stance.
FAQs
Q: What is the outlook for Malaysia’s IPO market amidst global uncertainties?
A: Bursa Malaysia chairman Tan Sri Abdul Wahid Omar remains optimistic about the IPO market’s resilience, despite global uncertainties.
Q: What is the Public Listed Companies Transformation Programme?
A: The programme was launched three years ago to enhance the fundamentals and performance of listed companies.
Q: How many companies have been listed so far this year?
A: 15 companies have been listed – two on the Main Market and 13 on the ACE Market, with another company, MSG Global Bhd, set to list on April 15, bringing the total to 16.