Bursa Malaysia is the stock exchange of Malaysia and one of the larger markets in Southeast Asia. It lists banks, plantation and palm-oil groups, telecoms, utilities, glove and technology manufacturers and property developers. The Securities Commission Malaysia supervises the market. Shares are priced in Malaysian ringgit (MYR), and the headline benchmark is the FTSE Bursa Malaysia KLCI.
This guide explains how a person buys Malaysian shares, what is distinctive about the market, and what a foreign investor should confirm first. It is general information, not advice on any share. Rules, fees and taxes change, so confirm the current position with a licensed participating organisation and a tax adviser.
How the market is organised
Bursa Malaysia has three boards. The Main Market is for larger, established companies. The ACE Market is for smaller and growing companies, with lighter rules and usually thinner trading. The LEAP Market is for smaller firms and is open to a narrower group of investors. Check which board a share belongs to before you buy, because the risks differ widely.
Shares are held electronically in a Central Depository System account, known as a CDS account. You do not receive paper certificates.
Step 1: choose a broker
Individuals trade through a participating organisation that is licensed by the regulator, usually the brokerage arm of a bank or an independent stockbroking house. Compare:
- Licence. Check the firm on the Securities Commission's register.
- Costs. Brokerage is usually a percentage of the order with a minimum. Online accounts often cost less than dealer-assisted ones.
- Platform. Most firms offer apps in English and Malay.
- Other products. Some firms also sell funds, derivatives and foreign shares, which carry different risks.
- Client protection. Ask how client assets and cash are kept apart.
Step 2: open the accounts
You normally need a trading account with the broker and a CDS account, which the broker can open for you. Malaysian residents use their national identity card and bank details. Foreign investors are usually asked for a passport, proof of address and information about the source of funds, and some firms do not take non-resident clients, so ask first. See foreign investor rules for the questions to ask.
Step 3: place an order
Use a limit order for shares that trade lightly. The exchange also sets price limits for a single day on many shares, so a price cannot move without limit in one session, which can stop you selling at once after bad news. Check volume before you buy.
Follow live and end-of-day prices, gainers and losers on Malaysian stocks.
Shariah-compliant shares
A large share of Malaysian listed companies are classified as Shariah-compliant under screening done by the Securities Commission's Shariah Advisory Council, and a list is published and updated regularly. Investors who follow Islamic principles check this list before buying. The list changes over time, so always read the latest version.
The ringgit and your return
The ringgit floats against other currencies. For a foreign investor, the result combines the share's price change and the currency move. Palm oil, gas and electronics exports tie the economy to global commodity and technology cycles, and the ringgit often reacts to the same news. See currency risk for foreign stocks.
What is distinctive about the market
- Government-linked investors. Large state-linked funds own big stakes in many leading companies, which limits the free float.
- Plantation and commodity exposure. Palm oil and gas companies make up a noticeable part of the market.
- Retail participation. Individual investors do a meaningful share of trading, which can magnify moves on news.
- Classification. Index providers treat Malaysia as an emerging market. See emerging vs developed markets.
Costs and tax
Expect brokerage commission, clearing fees and a stamp duty on contract notes, plus service tax on certain fees. Malaysia has taxed dividends and gains in different ways over time, and the treatment can differ for residents and for non-residents. Ask a qualified adviser about your own position. See tax on foreign stock gains.
A worked example
You buy 5,000 shares at 2.00 ringgit, an order of 10,000. With costs of 0.5 percent, or 50, you pay 10,050. If the price rises to 2.30, your shares are worth 11,500, a gain of 1,450 before selling costs. If it falls to 1.70, they are worth 8,500, a loss of 1,550 including the purchase cost. A foreign holder's result also moves with the ringgit. The numbers are an illustration, not a forecast.
Checklist before you invest
- Confirm the broker is licensed and ask whether it takes non-resident clients.
- Open the trading account and the CDS account.
- Check the board, the volume and the daily price limit.
- If it matters to you, check the current Shariah list.
- Read the latest report and note any large state-linked holder.
- Ask an adviser how dividends and gains are taxed for you.
This guide is for general information, not financial advice. See the disclaimer.