Malaysia’s First SRI-Qualified ETF Launched by Bursa Malaysia and AmInvest
Bursa Malaysia Bhd and AmInvest have officially launched the FTSE4Good Bursa Malaysia ETF, a landmark product that marks Malaysia’s first and currently only sustainable and responsible investment (SRI)-qualified exchange-traded fund available in the market.
This significant addition to the country’s financial offerings is designed to meticulously track the performance of the FTSE4Good Bursa Malaysia Index.
The index’s constituents are selected from the broader FTSE Bursa Malaysia EMAS Index, but they undergo a stringent and transparent screening process.
This process utilizes a well-defined Environmental, Social, and Governance (ESG) methodology, in addition to standard liquidity criteria.
This methodology was developed collaboratively by the global index provider FTSE Russell and Bursa Malaysia.
Datuk Fad’l Mohamed, the chief executive officer of Bursa Malaysia, emphasized that this collaboration is a clear reflection of both organizations’ shared and deep commitment to product innovation, investor empowerment, and the fundamental advancement of sustainability within Malaysia’s capital market ecosystem.
This strategic move aligns with the exchange’s broader goal of creating a marketplace that offers greater choice, deeper liquidity, and more diverse opportunities for investors to successfully achieve their financial goals, whether they pursue these through traditional securities, derivatives or exchange-traded funds like this new ETF.
Expanding Investment Choice with ESG-Focused Products
The launch of the FTSE4Good Bursa Malaysia ETF is a pivotal moment for the Malaysian exchange, as it significantly adds to the growing and increasingly diverse array of exchange-traded funds currently listed on Bursa Malaysia.
Datuk Fad’l Mohamed noted that, with this addition, the exchange now hosts a total of 15 ETFs.
This diverse range spans from funds focused on domestic and regional equities to those covering fixed income, commodities, and Shariah-compliant assets, and now crucially includes an ESG-focused index product.
This broadening of product offerings underscores Bursa Malaysia’s strategic effort to cater to the evolving preferences of modern investors, who are increasingly integrating sustainability and ethical criteria into their investment decisions.
Meanwhile, Jamie Ling, the chief executive officer of AmBank Group, hailed the launch as a major milestone for AmInvest itself, firmly positioning it within the AmBank Group’s ongoing commitment to seamlessly embedding sustainability across all facets of its business operations.
He stated that this new ETF not only successfully broadens AmInvest’s existing suite of responsible investment solutions but also effectively reinforces the firm’s ambitious goal of leading the market in actively shaping a more sustainable financial ecosystem for the region.
AmInvest’s history demonstrates a long-standing and successful track record of introducing innovative investment solutions, including the previously launched ABF Bond Index Fund, which remains Malaysia’s first and only bond ETF currently available in the market.
AmInvest Solidifies Leadership in the ETF Market
The successful launch and subsequent listing of Malaysia’s first SRI-qualified ETF further solidifies AmInvest’s dominant position within the local exchange-traded fund market.
The firm currently stands as the largest ETF provider in the country when measured by total assets under management (AUM).
AmInvest boasts an impressive total ETF AUM of approximately RM1.8 billion, a figure that commands an overwhelming market share of about 75.4%.
This dominant market position, coupled with the introduction of the new ESG-focused product, highlights AmInvest’s capability not only to manage scale but also to lead in product innovation that meets global standards for sustainable investing.
The successful collaboration with Bursa Malaysia and FTSE Russell to develop and implement a transparent and robust ESG screening methodology for the index constituents ensures that the new ETF adheres to high international standards of responsible investment.
The availability of such a product provides retail and institutional investors alike with an accessible and liquid tool to align their portfolios with ESG criteria, making it easier to participate in the growing trend of sustainable investing.
This marks a critical step forward in maturing Malaysia’s capital market, providing depth and variety, particularly in the increasingly important area of ethical and sustainable financial products.
