SC Annual Report 2025 : An Analysis

The Securities Commission of Malaysia's 2025 Annual Report reveals a paradox: record-breaking 60 IPOs and RM187.7 billion in fundraising, yet a RM66.6 million net operating deficit. In response, the SC is shifting from subsidized funding to a market-based fee model tied to revenue and assets under management—triggering a tenfold fee increase for small fund managers like Tradeview Capital, which now pays RM20,000 annually versus RM2,000–3,000 before. Despite strong domestic institutional inflows, foreign investors remain net sellers, driven not by macroeconomic fear but by deep-seated concerns over corporate governance, particularly the 'corporate mafia' issue that undermines confidence. Ng Zuhan, CEO of Tradeview Capital, argues that suspending implicated companies, enforcing fit-and-proper criteria, and establishing a state-backed activist fund—similar to the defunct ValueCap—are essential to lift underperforming stock valuations. He also stresses that cracking down on unlicensed finfluencers requires real enforcement, not just rules, to be credible. The new Capital Market Master Plan 2026–2030 aims to boost vibrancy through governance reforms and sector diversification, but without active market intervention, progress will remain superficial.