23-05-2025
Malaysia's retail investors to get shares as rewards in bid to boost interest in its stock exchange
A new securities transfer scheme allows brokerage firms to reward retail investors with shares of companies listed on Bursa Malaysia through marketing campaigns. PHOTO: BT FILE
Malaysia's retail investors to get shares as rewards in bid to boost interest in its stock exchange
SINGAPORE – Malaysia is taking steps to broaden its retail investor market with a new scheme that rewards shareholders with eligible shares of the country's listed firms .
Launched on May 22, Shares2U is a securities transfer scheme that allows brokerage firms to reward retail investors with shares of companies listed on Bursa Malaysia through marketing campaigns.
These shares can be awarded when investors perform specific actions, such as opening a Central Depository System (CDS) account, depositing funds or executing trades.
The CDS functions like Singapore's Central Depository accounts. Any securities that an investor buys or sells will be credited to or debited from his CDS account.
Most shares listed on the bourse can be awarded to investors, except those from companies classified under PN17 or GN3 – categories for financially distressed firms at risk of delisting. PN17 applies to firms on Bursa's main market , while GN3 covers those on the Ace Market.
Exchange-traded funds (ETFs) can also be awarded, except for leveraged ETFs, inverse ETFs and non-ringgit-denominated ETFs.
Seven firms – AmInvestment Bank, CGS International Securities Malaysia, Hong Leong Investment Bank, Kenanga Investment Bank, Malacca Securities, Maybank Investment Bank and Moomoo Securities Malaysia – will roll out the Shares2U scheme in their upcoming marketing campaigns.
Bursa Malaysia chief executive Fad'l Mohamed said Shares2U is an example of how Malaysia's capital market is responding to evolving investor behaviours and preferences.
'Today's investors, particularly younger, digitally native generations, expect more than just access – they want value, personalisation and engaging experiences,' he said.
'Shares2U empowers participating organisations to meet these expectations while fostering broader retail participation.'
The rollout comes on the back of a strong year for the Malaysian bourse.
A Deloitte report published in February showed that Malaysia saw 55 initial public offerings in 2024, which raised US$1.7 billion (S$2.19 billion). This represented a 100 per cent increase from 2023.
Bursa Malaysia also had South-east Asia's top listing in 2024 – consumer company 99 Speed Mart Retail Holdings. Its IPO raised US$574 million.
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