ICMR Capital Market Conversations 2025: A New Narrative for Malaysia: The Role of Capital Markets in Catalysing Strategic Industries

Friday, 21 February 2025 | Securities Commission, Bukit Kiara

On 21 February 2025, Tan Sri Andrew Sheng delivered an insightful presentation at our workshop titled A New Narrative for Malaysia: The Role of Capital Markets in Catalysing Strategic Industries. Over the course of two hours, he provided a comprehensive analysis of how Malaysia can navigate the evolving geopolitical landscape and leverage its capital markets to drive growth in key sectors. 

Key Insights from the Workshop: 

  • Understanding the New Geopolitical Paradigm 
    Tan Sri Andrew Sheng highlighted that the intersection of energy, finance, technology, and military power now defines global competition. The control over financial markets, AI, semiconductors, and energy resources shapes economic influence. Given these shifts, Malaysia must strategically position itself to attract investments and talent in these high-growth industries. 

  • The Need for Strategic Investments in AI, Technology, and Semiconductors 
    To stay competitive, Malaysia must increase its investments in R&D and technology-driven sectors, particularly AI, semiconductors, and digital innovation. Failure to do so could result in a slower economic trajectory compared to regional peers such as Indonesia and Vietnam. 

  • The Role of Capital Markets 
    Malaysia’s capital markets—particularly venture capital and stock exchanges—must be strengthened to facilitate funding for innovation and entrepreneurship. Encouraging private sector participation, co-listing opportunities within ASEAN, and enhancing liquidity in the financial ecosystem are crucial steps. 

  • Challenges and Considerations 
    Several hurdles were discussed, including currency volatility, competition from ASEAN neighbours, and Malaysia’s need for a stronger entrepreneurial ecosystem. To address these, funding mechanisms must be optimized to ensure capital is directed towards strategic sectors rather than being constrained by inefficiencies. 

  • Moving Forward: Funding and Nurturing Entrepreneurs 
    Malaysia must cultivate a robust entrepreneurial ecosystem by strategically deploying local financial resources to nurture startups and high-growth industries. The nation must also consider structural economic reforms to strengthen its competitiveness and ensure sustainable long-term growth. 

Conclusion

The workshop underscored the urgent need for Malaysia to take proactive steps in fostering capital market-driven growth. Strategic investments in AI, semiconductors, and digital industries will be pivotal in ensuring long-term economic resilience. As Malaysia navigates global uncertainties, its ability to attract and retain investment will determine its trajectory in the new economic paradigm. 

We want to hear your views...

Join us to help shape the future of capital markets!