23/04/2026

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SCAN ME

THURSDAY | APR 23, 2026

SC steps up ETF push, market reform to drive long-term growth o Key priority is to expand Malaysia’s exchange-traded funds ecosystem so as to position country as gateway for regional investments: Chairman

Embraer keen to forge partnerships in Malaysia

Ű BY JOHN GILBERT sunbiz@thesundaily.com

The KC-390 was designed from the outset to be versatile, highly capable, fully equipped, and optimised for rapid reconfiguration between missions. Its mission set includes vehicle and troop transport, humanitarian

KUALA LUMPUR: Brazilian aero space multinational Embraer SA

aims to tap partnerships in Malaysia while enabling Malaysian industries to boost their capabilities and to benefit from its engi neering expertise and technological prowess. Embraer Defence and Security’s vice-president of sales for Asia and Middle East, Caetano Spuldaro

assistance, disaster relief, medical eva-cuation, and air-to-air refuelling. Today, the aircraft also serves as a critical node within a wider defence network, making connecti vity a core requirement. With datalink inte

KUALA LUMPUR: The Securities Commission Malaysia (SC) is stepping up efforts to deepen market liquidity, expand exchange-traded funds (ETF) and attract long-term capital flows as part of a broader push to strengthen the country’s capital market resilience amid global uncertainty. SC chairman Datuk Mohammad Faiz Azmi said a key priority is to significantly grow Malaysia’s ETF ecosystem, which currently lags regional peers, as a means to position the country as a gateway for regional investments. “Malaysia currently has only 13 ETFs, compared to hundreds in markets like (South) Korea and China. We need to grow this segment because ETFs can allow global investors to access not just Malaysian assets, but also regional oppor tunities through Malaysia,” he told a press conference after releasing the SC Annual Report 2025 yesterday. Mohammad Faiz said the regulator is exploring the develop ment of regional and syariah compliant ETF, including the possibility of screening stocks across Asean markets to broaden the investment universe. “This is part of the strategy to attract larger pools of capital. It doesn’t have to be limited to Malaysian companies. We can intermediate regional investments through Malaysia,” he added. Mohammad Faiz noted that while global capital flows are shifting amid heightened geopolitical and economic uncertainties, Malaysia must position itself to attract more stable, long-term investors rather than rely on short-term foreign inflows. “Foreign funds can be quite fickle. What we need are long-term investors who are willing to stay invested for sustainable returns,” he said, adding that this includes strengthening domestic institutional participation. On market depth, the SC acknowledged that trading activity has softened despite overall market growth, and said efforts are under way to improve liquidity and parti cipation. The Malaysian capital market grew 3.2% to a record RM4.3 trillion in Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

gration, the KC-390 enables real time coordination with fighters, naval vessels, command centres and intelligence, surveillance and reconnaissance assets. “We will also highlight the latest updates on the A-29 Super Tucano, a highly versatile light-attack and advanced training platform already in service in the region with air forces such as Indonesia and the Philippines. Notably, the A-29 is expanding its mission portfolio to counter modern unmanned threats effectively and affordably,“ Neto said. Together, the KC-390 Millen nium and the A-29 Super Tucano demonstrate Embraer’s ability to deliver robust, reliable, and flexible defence capabilities tailored to the diverse operating environments and security challenges of South east Asia. The KC-390 Millennium has shown its value in real-world crises, where speed, range and payload make a difference. The jet-powered transport can reach up to 470 knots, carry 26 tonnes and operate from rough or unpaved runways, enabling faster disaster response and sustained operations in emer gencies. Its roll-on/roll-off system lets operators switch missions with minimal downtime. The aircraft is interoperable with Nato and non Nato forces and can refuel platforms such as the F/A-18 and the Sukhoi Su-30 used by the Royal Malaysian Air Force. It is already in service or on order in several countries, with recent missions including wildfire response and the transport of heavy equip ment such as helicopters and rocket systems.

Neto ( pic ), said these partnerships can span the supply chain, maintenance, repair and overhaul, manufacturing and other related fields of expertise. “For example, we have com ponent suppliers in South Korea that are involved in the Embraer’s KC-390 Millennium programme. “Drawing from successful part nerships in other markets, we are continually assessing further opportunities in Southeast Asia that contribute to the self-reliance aims of countries,“ he told SunBiz . Neto said Asia-Pacific is a strategic priority for Embraer, with clear opportunities for the com pany’s defence and security solu tions to support the region’s operational requirements and ongoing modernisation efforts. “At DSA 2026 (Defence Services Asia 2026), we are showcasing our latest portfolio and demonstrating how our platforms are well-suited to the evolving mission demands of defence forces in Southeast Asia, including Malaysia. “The centrepiece of solutions that we will showcase at our booth will be the KC-390 Millennium, a new-generation, multi-mission aircraft that is redefining the medium transport category. “The aircraft has already been demonstrated in the region, having appeared at last year’s LIMA exhibition and the recent Singapore Airshow,“ he said. Neto said across the Asia-Pacific, as in many other parts of the world, air forces are seeking medium tactical transport aircraft that combine speed, flexibility, perfor mance, reliability, and survivability, while keeping operational costs under control.

Mohammad Faiz (centre) displaying the SC Annual Report 2025 at a press conference yesterday. Flanking him are Securities Commission managing director Datin Paduka Azalina Adham (left) and executive director of Islamic capital market Sharifatul Hanizah Said Ali. – BERNAMAPIC

funds from high-net-worth investors. “This creates another channel of financing while ensuring proper risk management,” he said. The SC is targeting to mobilise about RM130 billion over five years through a combination of public and private funding initiatives. Beyond financing, the regulator is also advancing reforms under the Capital Market Masterplan 2026 2030, including enhancements to the Main, ACE and LEAP markets, as well as frameworks for digital assets and tokenisation of securities. On digital markets, Mohammad Faiz said, initiatives such as digital asset ETF and improved regulatory clarity are expected to support future growth areas. Meanwhile, Malaysia’s Islamic capital market continued to expand, rising 4.31% to RM2.7 trillion in 2025, reinforcing the country’s position as a global leader in syariah-compliant finance. The fund management industry saw assets under management increase 6.9% to a record RM1.14 trillion, while total funds raised in the capital market surged 35.4% to RM187.7 billion. Despite global headwinds, Mohammad Faiz maintained that the Malaysian capital market remains fundamentally resilient. “In a volatile environment, stability is a strength. The focus now is on building depth, competitiveness and long-term sustainability,” he said.

2025, up from RM4.2 trillion in 2024, supported by higher bond issuances and fund management inflows, according to the report. However, average daily trading value declined 19.7% to RM2.76 billion, reflecting more cautious investor sentiment amid global volatility. Mohammad Faiz said the SC is also focusing on enhancing corporate value creation through its “MY Value Up” programme, which targets the top listed companies representing about 80% of total market capitali sation. “We are not here to run companies, but to ensure they have the right information and frame works to improve their valuation and attractiveness to investors,” he said. The programme will initially be voluntary, with engagement sessions and workshops planned from May, before potential broader imple mentation in the coming years. At the same time, the regulator is prioritising efforts to close the financing gap for small and medium enterprises (SME), estimated at RM268 billion. “This gap remains significant. Alternative financing, private equity, venture capital and private credit will play a bigger role in bridging this,” Mohammad Faiz said. He added that the SC is open to allowing qualified fund managers, particularly those linked to banking groups, to extend credit to SME using

BNM international reserves at US$128.8 billion on April 15

KUALA LUMPUR: Bank Negara Malaysia’s (BNM) international reserves stood at US$128.8 billion (RM508.7 billion) as at April 15, 2026. In a statement yesterday, the central bank said the reserves position is sufficient to finance 4.7 months of imports of goods and services, and is 0.9 times the total

short-term external debt. BNM said the gross international reserves comprise foreign currency reserves (US$112.9 billion), International Monetary Fund (IMF) reserves position (US$1.3 billion), Special Drawing Rights (SDR, US$5.9 billion), gold (US$6.4 billion) and other reserve assets (US$2.3 billion). – Bernama