- 2 hours ago
Malaysia’s capital market is now worth RM4.3 trillion, with ambitions to reach RM6.3 trillion by 2030. As younger investors enter the market through digital platforms, social media and AI-driven tools, how can Malaysia build a stronger and more sustainable retail investor base? Stephanie Tan Kar Mun of Bursa Malaysia Berhad joins Niaga Spotlight to discuss investor behaviour, financial literacy, market participation and the future of retail investing.
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00:07Hello, I'm Tamina Khosji and this is Niagara Spotlight.
00:11Today our spotlight is on the new retail investor.
00:14Malaysia's capital market is currently worth a record 4.3 trillion ringgit, roughly,
00:19with ambitions to reach as much as 6.3 trillion ringgit by 2030.
00:23Now getting there will require more than new listings and higher trading volumes.
00:28It also depends on the depth as well as the quality of the investor base behind that growth.
00:34Now retail investors are certainly part of that equation
00:37and Malaysians' investment habits have really been rapidly changing
00:42due to digital platforms, social media and currently AI in investing.
00:47So what does a stronger retail market for Malaysia require
00:51and are investor capability and also regulation keeping pace?
00:55Welcoming to the studios for this timely discussion.
00:58We have now with us Stephanie Tan-Kamun,
01:00who is Director for Group Commercial and Market Coverage with Bursa Malaysia, Berhad.
01:05A very good morning to you, Stephanie.
01:07Thank you for being with us.
01:09Thank you. Thank you, Tamina.
01:10It's a pleasure to be here today.
01:12Fantastic. So Stephanie, let's talk about Malaysia's equity market,
01:15which was worth about 2.1 trillion by the end of 2025.
01:18And average daily trading value back then, it fell almost 20% to 2.76 billion ringgit.
01:25But at the same time, we've seen things really catch up and come to pace.
01:29There's also, of course, the Capital Market Master Plan,
01:32which aims to take things much bigger, 6.3 trillion, hopefully by 2030.
01:37But let's talk about what Bursa is really looking at
01:41when we want to be better measuring the breadth and the depth of our market.
01:46Yeah. So Tamina, thank you.
01:48I think I would measure the health of the retail market,
01:52not just by how much trades we have on a daily basis.
01:56I think I'll measure it in terms of how resilient and meaningful
01:59that participation is over time, right?
02:02So of course, trading activity will naturally rise and fall with market cycles.
02:05Market cap also depends on institutional flows,
02:09foreign participation, corporate actions, overall market conditions.
02:12So I think neither number on its own tells us whether retail participation is becoming healthier.
02:18But for Bursa, there are several things that we look at, right?
02:21So first, I think we look at the contribution of retail investors to our market.
02:26So if you look at the retail investor contribution to our market over the last three years,
02:30it has remained steady at 27% to 33% of the market.
02:34So that continued participation actually matters because it provides an important source of liquidity,
02:40you know, even when overall activity moderates.
02:43So that sustained participation is encouraging.
02:45I think second is the investor base itself.
02:47If you look at the new investors that are continuing to come to the market,
02:51we are seeing a growth, right?
02:52So in 2024, we saw about 480,000 new CDS account openings.
02:58In 2025, that number moved to 522,000.
03:01And if you look at the first eight months of this year itself,
03:06we have about 420,000 new CDS account openings.
03:10And encouragingly as well, that tells us that the funnel is still expanding, right?
03:16And third, I think increasingly important is how the investors are participating in the market, right?
03:21We are seeing a meaningful shift in retail participation towards the large and blue chip companies, right?
03:29If you look at the numbers, in 2021, micro and small cap stocks accounted for about 47% of retail
03:36trade value.
03:38That number year to date has fallen to 18%.
03:41And at the same time, the large cap and blue chip stocks have increased from 27% to that 51%.
03:48So I think that is an interesting development because it does show that retail investors are becoming more selective in
03:54how they deploy the capital.
03:55And it's not about one segment being better than another,
03:58but it's about investors broadening their understanding of market participation
04:02and making decisions, you know, based on businesses and fundamentals.
04:07So ultimately, four things that I would see.
04:09One is a growing investor base.
04:11Two is meaningful participation.
04:14Three is resilience across market cycles.
04:17And lastly, increasingly informed and diversified behaviour.
04:21So that is the kind of participation that we want to see in the market.
04:24Exactly.
04:25And that roughly one third liquidity that is showing as a pretty consistent trend throughout the years
04:31is also really encouraging because, of course, there's not always going to be a rally year.
04:35There are quieter years as well.
04:38Stephanie, moving into the fact that let's now look at a different arena of the demographic,
04:43which is looking at the age of the retail investor out there.
04:49Now, Bursa's research is not telling us something too definitive, but it is a lot more nuanced.
04:54We're looking at 25 to 34 years old.
04:56They're representing, it's coming on close to about 25% of the active Bursa investors.
05:03So tell us more about the youth factor, especially.
05:08Yeah.
05:08So you're right.
05:09I think we are seeing more young Malaysians enter the capital market.
05:14If you look at the proportion of active investors aged, I think, 25 to 34,
05:20in 2023, that number was 23%, right?
05:23Now it's moved to 26% as of August this year.
05:27And as I mentioned earlier as well, we are seeing around 60% of new CDS accounts
05:32opened by investors aged 35 and below, so the younger generation.
05:37And that compares to 2021 levels of about 37%.
05:40So we are seeing more and more new CDS accounts being opened by the younger investors.
05:46But the generation, no shift, I think, is very visible at the entry point.
05:50But I think I want to distinguish from who currently deploys the most capital, right?
05:56So, of course, a 28-year-old beginning his career is unlikely to have the same financial capacity
06:01as someone who is a 50-year-old who probably has spent some time building up his wealth and his
06:07assets.
06:07So I would not expect that age distribution of trading value to change overnight,
06:12simply because younger people are opening accounts.
06:15But the more important question that we have is what happens next, right?
06:20Exactly.
06:20What is actually going to help convert that initial participation funnel into far more sustained investing, right?
06:27That's right.
06:28So I think we ask ourselves a lot in this kind of question to say, basically,
06:33how do we make that first experience a positive one?
06:36How do we help a young investor move from opening an account to understanding the risk
06:42and to actually investing consistently and eventually build a meaningful portfolio as their income grows?
06:48So I think for me, it starts with confidence and understanding, yeah?
06:52So that's why for BUSA, we have investor education efforts across different stages of the journey, right?
06:59We have initiatives for as young as 8 to 14-year-olds.
07:03It's called Bermond Trader, yeah?
07:05So it's a game that was modeled after Pokemon.
07:09But it basically introduces financial literacy and scam awareness in a fun way to the younger audiences.
07:16Absolutely essential today as well, considering the volume of scams that are going around, right?
07:22Yeah, so we want to ensure that we build that financial literacy at a young age.
07:25So when they come to market, they are informed, yeah?
07:28Then there is also the – we also run this BUSA Intervasti Stock Challenge.
07:32So the BUSA Intervasti Stock Challenge is for university students, right?
07:36So during the challenge, the challenge will compose of fundamental research analysis.
07:43So they need to write research reports.
07:45They will also be guided by a licensed research analyst, right?
07:49And with that, they will then do a stock simulator and trading, and then they will win the competition and
07:55all that, right?
07:55So all of this is also to teach that financial literacy to the university students as well.
08:00And of course, we recently just completed last weekend our inaugural Invest Smart BUSA Marketplace Fair.
08:07So we wanted to bring together, you know, these two large fairs that SC and BUSA has done to basically
08:15cover a larger market, you know?
08:18And that event, you know, brought together, brought all the trusted sources at one place, yeah?
08:24So there was like financial planners, you know, there was, you know, brokers basically there for opening of CDS accounts.
08:32There was a lot of experts, speakers, seminars, talks.
08:35And all that is to basically bring in more resources to the retail investor.
08:41So I think our objective is – I think it's not simply to make the market younger, you know,
08:47but it's to help that younger investors develop that knowledge, you know, the confidence and the habit.
08:52And I think if we get that right, today's young investor is not just a new account.
08:56They will become a long-term participant in Malaysia's capital market and ultimately a long-term wealth builder.
09:03Exactly, because that long-term also comes with sustained additional income being diverted towards, hopefully, retail investments too.
09:11From there, Stephanie, now Malaysia has a little over 1,000 listed companies following a record 60 IPOs, which occurred
09:19last year in 2025.
09:21So, of course, more listings, they do expand our investment ecosystem, but it does not necessarily mean that creates more
09:27liquidity or even effective price discovery for retail investors out there.
09:32Some thoughts on this and what Bursa's data is telling us now at this very interesting juncture of the market.
09:38Yeah, sure. So I think, of course, having more listed companies will give investors more choice, you know, it gives
09:44companies access to capital.
09:46But I think the more important point is to look at the market as an ecosystem, right?
09:50For a company to have effective price discovery and liquidity, investors need to remain invested in the business, yeah?
09:57They need to understand what's the information available to them and they need to be willing to participate over time,
10:02right?
10:02So, naturally, some stocks and sectors will attract more attention at certain points of time.
10:07And in fact, earlier on, I mentioned our own data actually shows retail investors are increasingly gravitating towards large cap
10:14and blue chip companies.
10:15But I think the opportunity now is for us to deepen that participation across the market as investors become more
10:21experienced in the market.
10:22So, this is where information becomes particularly important and I think this is a shared responsibility across our ecosystem, right?
10:31Bursa's role here is to provide access to, you know, market information, authoritative market information.
10:36In fact, maintain that infrastructure and framework that supports a fair, orderly and transparent market.
10:43Brokers have an important role to engage and educate the investors.
10:46And listed companies have a role in communicating clearly with shareholders and improve their investor engagement.
10:53So, I would not frame the retail participation, you know, as concentrated, you know, in certain stocks.
10:59I mean, some concentration is normal.
11:01But I think the bigger opportunity is to make that participation deeper and more informed as the investor base grows,
11:08right?
11:08So, I mean, in fact, I guess listing gives investors more doors to choose from.
11:13But the next step is helping the investors with the knowledge and confidence to actually walk through that door.
11:18And also then to make other decisions as well, which helps to continue ensuring that it's not just a relatively
11:24narrow group of stocks.
11:26So, just before we break, now, Bursa's research also found really different motivations across different age groups as well, Stephanie,
11:33from passive income amongst younger working adults to there's also the retirement kitty among older investors.
11:40So, what are some of the challenges which, in Bursa's opinion, are preventing more Malaysians from treating equities as part
11:47of longer term wealth accumulation in 2026?
11:51So, I don't think there is one single barrier because Malaysians are at very different stages of the wealth accumulation
11:58journey, right?
12:00Our retail investors' research actually shows that motivations change with age and life stages, right?
12:08So, if you look at among the 25 to 34-year-olds, 57% of them, you know, in our
12:15survey actually cited passive income as a motivation for investing.
12:18If you look at the 55 to 64 age group, retirement planning becomes more prominent with 68% citing it,
12:25right?
12:26So, I would not say that Malaysians are, you know, that there's a big barrier.
12:30But I think it depends on the financial capacity, the confidence and the investment needs, right?
12:35So, if you look at for younger Malaysians, of course, disposable income is understandably an important consideration.
12:41And our survey also found that investors allocate around 8.4% of income to investments on average with salary
12:49and savings being the main source of investment funds, right?
12:53So, that means accessibility matters for the younger investor.
12:57Investors need to feel that they can begin at a level appropriate to their own circumstances.
13:01That's right. Stephanie, thanks for the conversation so far. We do take a quick break. Don't go anywhere.
13:06We'll be right back with the rest of the interview on Niaga Spotlight.
13:25Welcome back to Niaga Spotlight. Still with me, Tamina Kausji.
13:28And the focus this week is on looking at Malaysia's new retail investment, together with Stephanie Tankamun, who is of
13:34Bursa Malaysia.
13:35Burhan, right here in the studios with us. Stephanie, jumping straight back into the conversation.
13:40Now, you can't discuss retail investment, of course, without the huge presence of digital platforms.
13:47And this has dramatically shortened the gap between receiving any kind of information and making those trades.
13:53For, honestly, actually, retail investors of all age groups.
13:58What is Bursa seeing about the current relationship between easier acquisition, but interestingly, decision quality of our retail investments?
14:07Yeah. So, I think if you look at, you know, the changes that we see now, I mean, there's a
14:14lot of, obviously, more information in the market, right?
14:16Absolutely. Yeah. And having information glut in some ways.
14:20Yes. I mean, I would view information as fundamentally positive for the market.
14:26And when we looked at our retail investor research, it also gives some encouraging insights.
14:31So, around 48% of our investors said they use research reports in making investment decisions.
14:36Yeah. 47% look at company performance and another 47% use chart analysis.
14:43Now, in this survey, investors could select multiple sources of information, right?
14:48So, we should not read those percentages as mutually exclusive groups, but rather that many investors are actually combining different
14:56analytical tools when making that decision,
14:59rather than relying solely on market sentiment or price movements.
15:02That's showing a lot more sophistication than even five years ago, right?
15:06Correct. Correct. Yeah. So, I think that's encouraging.
15:09But the more interesting question is what happens between receiving that information and actually taking that action, yeah?
15:15So, information does not automatically, obviously, produce better decision, right?
15:19So, the clear point to make is investors still need to assess the quality of the information, yeah?
15:25Understand the context and distinguish credible information from opinions, speculation or rumours, yeah?
15:32So, I think that's particularly important today because investors, you know, may receive, you know, and may interpret, you know,
15:41information wrongly, you know,
15:42through social media, through chat groups, through online forums.
15:45So, I think it's clear that we need to do the research.
15:48Our research also reflects a mixed information environment, you know?
15:52Okay.
15:52Yeah. So, around 30% of our investors actually say they listen to friends and family, yeah?
15:57They rely on mysia recommendations and they actually follow online forums, right?
16:04So, our answer here is we don't want to limit the information available to investors,
16:08but we want to give them access to more credible and relevant information and more timely information.
16:13So, if an investor sees a stock trending online, the next step should not be automatically, you know,
16:19oh, we should buy or sell it, you know, but it should be what is the source of that information?
16:23Is there a company announcement?
16:25What are the fundamentals?
16:27And is this, in fact, an interpretation or a rumour, right?
16:30So, that's why platforms like MyBusa is useful, you know?
16:34They provide access to market information, company announcements, research and tools.
16:38And ultimately, I think digitalisation should not just make investing faster,
16:42but it should make investors more informed when they act so that they do so with greater confidence and understanding.
16:48Exactly.
16:48And on that same note, though, Stephanie, the market has really widened when it comes to the information touch points.
16:56For example, a new company or even an existing one, it could be discovered by younger investors,
17:03especially it could be via TikTok, a YouTube video.
17:06They may be then listening to a Finfluencer, a financial influencer.
17:11They may be having analysis done on the stock by generative AI before they even trade it via a broker.
17:18So, that actually really increases the number of touch points.
17:23Now, when credible research and persuasive content are really competing for the investor's attention,
17:30what are some, you know, gold-lined recommendations?
17:33Yeah.
17:34So, I think, you know, the important question is, you know, when an investor discovers an idea somewhere else,
17:41you know, where do they go to establish the facts?
17:43I think this is where Busa is important, you know?
17:46And also what we did with InvestFare, Busa Marketplace Fair, right?
17:49So, Busa should still be the primary source for official company disclosures, market announcements and any material information released to
17:57the market, right?
17:58So, even if an idea originates elsewhere, the investors should always go back to their trusted place to verify the
18:05underlying information.
18:06And we need to distinguish awareness from analysis, right?
18:09Social media can be effective to create awareness and discussion, you know, but credible research serves a different purpose.
18:16It helps the investors understand a company, the investment view through facts, analysis and transparent assumptions.
18:22So, I think for investment conversations, as they increasingly move online, investors should also be more conscious on who is
18:30providing the advice or promoting an investment opportunity.
18:34They should verify whether that intermediary or agent is authorized or licensed and actually make use of securities commissions, relevant
18:42investor protection tools, right?
18:43So, they have a SE investment checker and an investor alert list, right?
18:47So, our role here is not to compete, you know, with every platform for attention, you know, nor is it
18:53the control, but our role here is to strengthen the quality and accessibility of the information ecosystem for the market,
18:59right?
19:00So, that makes authoritative information even more important and especially with generative AI now, you know, AI can summarize, you
19:08know, but they cannot verify, you know.
19:09So, that becomes very important.
19:12It would still be really important for those especially new to the investment company to go back to bursa because
19:17that's where you can find your original, your company disclosures, verify it and go through it with a fine-tooth
19:23comb, right?
19:24Yeah, that's right, that's right.
19:25So, I think as technology changes, you know, the way investors discover and consume information, you know, trusted source of
19:33data becomes very important and, you know, we want to make sure that they establish the facts behind those ideas.
19:39And bursa remains a source they know they can rely on.
19:43Absolutely.
19:44So, moving into looking at domestic retail investors.
19:48So, they were fairly small net buyers of Malaysian equities.
19:52That was in 2025 and that was to the tune of roughly RM160 million after they had been net sellers
19:59to the tune of RM5.83 billion in 2024.
20:03But at the same time, though, overall trading activity was still pretty moderated.
20:08What has bursa learned about what makes retail investors remain engaged through slightly weaker or less exciting markets?
20:16Let's go a little deeper into that, Stephanie.
20:19Okay, okay.
20:19So, I think it's important to put those fund flow numbers in context, yeah.
20:25Fund flow data on its own does not tell us why investors made certain decisions, right?
20:30I think what is encouraging is that despite a more cautious environment and slower overall trading activity, retail investors remain
20:38net buyers in 2025, you know, rather than stepping away from the market entirely.
20:43So, I think more broadly, trading activity will always respond to sentiment, you know.
20:48But the real question is what keeps the people engaged through those cycles, right?
20:53Education is certainly a part of it.
20:55We also have this national investment program, you know, where we are helping Malaysians build investment knowledge, understand risks and
21:01make more informed decisions.
21:03But education, of course, in itself is not enough, right?
21:06So, we do need quality information and investment opportunities.
21:09And platforms such as MyBusa can help provide market information, company announcements and educational resources all in one place.
21:16We need to bridge that information and engagement gap between retail and institutional investors.
21:22Because traditionally, institutional investors would have more opportunities to interact directly with the company.
21:30But we are doing initiatives such as the Retail Corporate Day, which is actually designed to give retail investors greater
21:38access to listed companies, senior management and market experts.
21:42And we are doing that nationwide, right?
21:43We are going to Sabah, Sarawak, Trengganu, and we're doing targeted approaches to ensure the investors remain informed and they
21:51know where to go to.
21:53So, the other thing is, I would say, it's a combination of four things for retail sustained participation.
22:00One, I think it's knowledge.
22:02Two, it's access.
22:04Three, opportunity.
22:05And lastly, confidence.
22:07So, again, we want to see, you know, investors understanding the market, assessing credible information, seeing that relevant investment opportunities,
22:17having the integrity of the marketplace and then better equipped to remain engaged through the different market cycles.
22:22So, this is the kind of participation that we want on Bursa.
22:26Absolutely.
22:26And also, it is about ensuring that you're decentralising always so it's not only urban market focus.
22:32It's very interesting to hear that, of course, Bursa has been ensuring adequate coverage and leaving no one behind, including
22:39from East Malaysia as well.
22:41Is the response different in that sense when Bursa goes on the ground outside of, of course, greater urban Kuala
22:48Lumpur, Slangor?
22:49Yeah, for sure, for sure.
22:50I think when we did the Retail Corporate Days or the Bursa Marketplace Fairs in Sabah and Sarawak, we did
22:57see about 60% to 80% increase in CDS account openings.
23:01And with that, we are tracking as well in terms of, you know, the activity that is happening in that
23:06region as well.
23:07I think the key point is we want to make investing inclusive.
23:13And I think one key point is also lowering the barriers to entry, yeah.
23:18So, lowering the barriers to entry in the sense of, you know, that's why we have, you know, initiate.
23:24I mean, that's why, you know, now we have fractional investing.
23:27We also have other products, you know, like we have the Bursa Gold Dina, right, which is a fractional Sharia
23:35Gold product, you know.
23:36So, where an investor can invest from as low as RM10, right.
23:40So, we also have BR Capital.
23:42So, BR Capital is a fixed income fundraising, debt fundraising platform, which basically allows for a retail investor to invest
23:51in a piece of an SME for as low as RM100.
23:55So, we are trying to bring that journey, you know, for an investor that suits different risk profiles, right.
24:02So, if you are, you know, if you're just beginning your investor journey, you know, you can start to invest
24:07in gold, you know.
24:09And then as you move up the journey, then only go into equities.
24:12We also have derivatives products, which is, you know, at the other end of the spectrum, where we also came
24:17up with Mini FKLI, which is a smaller size contract derivative product, you know.
24:22So, all this is actually to lower the barriers of investing, but ensure that it's informed investing and sustained over
24:29a long period of time.
24:31Exactly. So, it's really trying to balance out the market and ensure that everyone gets the opportunity appropriate to them
24:38at that particular life stage.
24:40In closing, would you say there are any other ways that Bursa is looking at for Malaysia to build a
24:46genuinely stronger retail investor base, not simply looking at account numbers, right?
24:51Yeah. So, I think not simply looking at account numbers, I think is we want more Malaysians to participate more
24:58meaningfully in the capital market, not simply, you know, just trade more frequently,
25:02but to invest consistently, diversify and build your wealth over time, yeah.
25:08So, you know, I think the first is, you know, to see whether we can convert the not participating to
25:14participating.
25:15Because if you look at our CDS accounts now, we have about 4.3 million CDS accounts.
25:20And if you look at, this is against an estimated population age, let's say 20 to 64, which is about
25:2619 million, you know.
25:27So, we still have room, you know, to broaden that participation.
25:30But of course, you know, again, opening an account is not the end objective, but it's a starting point.
25:35Second is to transition the participation from informed participating.
25:38Third is investing to long-term wealth building, right?
25:43And I think lastly, you know, we want to help Malaysians move from savers to informed investors to then long
25:49-term wealth builders
25:50and to strengthen the individual financial resilience and also depth and resilience and competitiveness of Malaysia's capital market.
25:57Absolutely. Stephanie, thank you very much for sharing with us all these updates, as well as wishing you and your
26:02team all the very best with achieving those goals.
26:05Thank you very much. Thanks, Damani, for having me.
26:06Now, getting more Malaysians into the market is only the beginning.
26:10Ensuring the new generation of retail investors builds knowledge is what helps them to turn access into long-term wealth.
26:16Well, that's all we have time for today on Niagara Spotlight.
26:19I'm Tamina Kausji, signing off for now.
26:21We'll see you again next week with more economic analysis and insights.
26:24Transcription by ESO. Translation by ESO. Translation by —
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