Malaysia Forecast to Dominate ASEAN IPO Market in 2026
Malaysia is strongly positioned to retain its leadership as the top destination in ASEAN for Initial Public Offering (IPO) listings and subsequent capital raising activities throughout 2026, according to analysis from CGS International Securities Malaysia Sdn Bhd (CGS Malaysia). This optimistic forecast is built upon significant momentum established in the preceding year, with seven more listings anticipated in the pipeline for 2025, culminating in a projected total of 59 IPOs for the year.
Khairi Shahrin Arief Baki, the chief executive officer of CGS Malaysia, stated that the strong interest in the Malaysian market is expected to remain exceptionally high, especially in light of the Securities Commission Malaysia’s (SC) recent consultation paper. This paper proposes major and highly anticipated updates to the listing requirements for both the Main and ACE Markets, changes that are scheduled to take effect in 2026 and are drawing significant attention from both local and regional capital markets.
These markets will closely monitor the outcome of these proposed revisions to gauge how effectively the changes will further strengthen Malaysia’s competitive edge as a premier location for new listings. CGS Malaysia maintains a constructive and positive outlook on the overall Malaysian market moving into 2026, driven by a combination of receding external economic headwinds and expanding, powerful domestic tailwinds.
The firm expresses confidence in Malaysia’s potential to function as a stable safe haven against ongoing global uncertainties, such as the tensions between the US and China, and simmering conflicts involving major powers like China and Japan. This resilience is underpinned by Malaysia’s strategic geographical location, supportive governmental policy direction focused on high-growth and high-value economic sectors, and a robust focus on domestic development.
Strong Fundamentals and Regulatory Efficiency Drive Investment
CGS Malaysia’s findings, detailed in its comprehensive annual Navigator Report 2026, provide a detailed preview of the market expectations and key themes likely to shape the landscape post-Malaysia’s Chairmanship of ASEAN. The report also meticulously outlines expectations for the upcoming Budget 2026 and its associated policy priorities, alongside the anticipated rollout of the 13th Malaysia Plan (13MP), all of which are critical factors that will profoundly impact the markets in the coming year.
Khairi Shahrin Arief emphasized that the substantial investment growth observed in Malaysia throughout 2025 is firmly anchored in the country’s strong fundamental underpinnings. These foundational strengths include political stability, consistent policy direction, rigid fiscal discipline, and robust governance practices, all of which are essential in building and maintaining sustained investor confidence.
The strong regulatory foundation and market efficiency, bolstered by a diverse and healthy listing pipeline, have set a powerful stage for continued growth. This pipeline draws from a wide array of key economic sectors, including consumer goods, healthcare, logistics, and technology, ensuring that the local capital market is well-equipped to capture and convert investor interest into tangible IPO deals and successful capital raising events.
CGS Malaysia reaffirmed its commitment to supporting these national economic strengths through its demonstrated capital-market leadership. This includes a dedicated focus on driving greater collaborations across its ASEAN and China networks, which are crucial for attracting cross-border Investment, while also contributing actively to the growing global dialogue and thought leadership surrounding sustainability and Environmental, Social, and Governance (ESG) Investment criteria.
Tourism Revival and Sectoral Investment Opportunities
The analysis presented by CGS Malaysia highlights the significant role that the upcoming Visit Malaysia 2026 (VM2026) campaign is expected to play in fueling market opportunities and driving the national Economy. With 2026 earmarked for this major tourism push, the country has set ambitious targets of attracting 31 million tourist arrivals and generating RM147.1 million in tourist receipts.
This targeted growth translates into an impressive two-year compounded annual growth rate (CAGR) of 19 per cent for arrivals and 20 per cent for receipts, relative to the 2024 baseline figures. This anticipated boom in the tourism sector is expected to create immediate and highly attractive Investment opportunities across related industries.
CGS Malaysia specifically noted that stocks and entities operating within the tourism landscape should garner substantial investor interest. Key sectors highlighted include aviation, consumer retail, healthcare services, and real estate investment trusts (REITs) that hold prime commercial assets like major shopping malls and upscale hotels.
These sectors stand to benefit directly and immediately from the surge in tourist traffic and spending. Furthermore, the report pointed out that recently listed companies, such as Aquawalk Group, offer a compelling and timely investment proxy to participate directly in the expected VM2026 play, making it a clear example of a sector-specific opportunity emerging from the domestic tailwinds.
The successful execution of the VM2026 campaign is expected to significantly contribute to the overall resilience and growth of the Malaysian Economy, further strengthening the case for increased foreign and domestic Investment in the country’s various capital markets, solidifying the forecast for IPO dominance.
Regional Market Impact: Regulatory Arbitration and Capital Magnetism
The forecast of Malaysia retaining its ASEAN leadership in the IPO space is less a simple projection of momentum and more an acknowledgment of a strategic regulatory move that creates capital magnetism through “listing arbitration.” The anticipated updates to the SC’s listing requirements for the Main and ACE Markets are the pivotal factor.
If these revisions streamline the path to listing for specialized entities—particularly high-growth, high-value firms in sectors like Fintech and advanced manufacturing that possess large intangible assets but may lack traditional profitability metrics early on—Malaysia will gain a material competitive advantage over neighboring exchanges. In the regional Finance ecosystem, this regulatory agility allows Malaysia to position its ACE Market as a more attractive and faster funding route for the next generation of ASEAN unicorns, potentially diverting listings that might have historically gone to Singapore or Jakarta.
This success creates a strong positive externality for the broader Malaysian Economy; a deep and efficient IPO market is crucial for facilitating the “exit” required by private equity and venture capital funds, which in turn encourages them to inject more upstream Investment into local startups. The confidence expressed by CGS Malaysia, particularly its mention of collaboration across ASEAN and China networks, underscores the role of the Malaysian capital market as a strategic conduit for Chinese capital seeking ASEAN exposure while mitigating broader geopolitical risk.
This capital inflow not only bolsters domestic Investment but also increases the liquidity and valuation stability of the Bursa Malaysia composite index, reinforcing Malaysia’s role as a resilient and strategically important regional Business and Finance hub.
