Malaysia remains open and welcoming to Chinese companies seeking to list on Bursa Malaysia whether for their first or second listing exercise, in line with both countries’ shared goals of fostering innovation and promoting high-value products and services.
The Securities Commission Malaysia’s (SC) executive director of corporate finance and investments Datuk Zain Azhari Mazlan said the listings will certainly enrich Bursa Malaysia with a greater variety of stocks and broaden the investment opportunities available to investors.
“Malaysia saw an influx of China-based companies seeking a primary listing via initial public offering (IPO) on Bursa Malaysia about 15 years ago from 2009 to 2013, but a number of these companies have since delisted or undergone takeovers, largely due to corporate governance issues, financial performance and compliance with audit and listing requirements.
“(However), these experiences have provided valuable lessons for both the market and regulators, prompting ongoing efforts to strengthen listing requirements and investor protections,” he told Bernama on the sidelines of the CGS Southeast Asia (SEA) Bilateral Investment Forum here.
Zain was one of the speakers during the roundtable session of the forum.
Zain said these Chinese firms that have sought listing on Bursa, which were mostly in the typical consumer product sector, were noted to be mostly third-tier entities or small and medium enterprises (SMEs) operating in the lower industry value chain.
“The landscape has shifted significantly towards newer sectors for economic development such as the rise in digital transformation and the focus on innovation and sustainability,” he said.
According to him, Malaysia has established itself as a leading destination for new data centre installations and an attractive semiconductor hub, driven by supportive government’s policies such as through the New Industrial Master Plan 2030, which aims to further strengthen the sector.
“We are seeing renewed interests from Chinese companies in the new economy sectors, especially those with existing Malaysian-based operations or planned expansion into Malaysia.
“These newer economy-type of Chinese companies, especially in sectors such as technology and cloud computing, offer several benefits to the Malaysian market by providing investment opportunities, technology transfer and knowledge, job creation and boosting innovation that can lead to our economic growth, advancement and enhanced competitiveness in the region,” he said.
Currently, he said, several Chinese companies in those mentioned areas and sectors have shown their interest in list on Bursa Malaysia.
Meanwhile, Deputy Investment, Trade and Industry Minister Liew Chin Tong said Chinese companies should consider Malaysia as an ideal destination to set up their regional headquarters, from which they can expand internationally.
In his pre-recorded keynote address at the forum on Oct 16, he said Malaysia’s strength lies in having a skilled and educated multilingual workforce, an internationally recognised common law framework, comprehensive logistics network and a stable society.
He hoped improved communication between the two nations would allow for a deeper and closer collaboration between Malaysia and China.
The CGS SEA Bilateral Investment Forum 2024, from Oct 16-17, 2024, brings together 300 leading policymakers, industry experts and business leaders to explore emerging macroeconomic trends and bilateral investment opportunities between China and Southeast Asia.
The forum will also explore high-growth sectors such as semiconductors, new energy, healthcare, private equity, hospitality and the digital economy, featuring expert panellists from China and Southeast Asia.
