Deepening Regional Cooperation Through Malaysia’s ASEAN Chairmanship

Malaysia at the Helm: ASEAN Chair 2025

Centred around the theme of ‘Inclusivity and Sustainability’ across the Economic, Political-Security, Socio-Cultural pillars, Malaysia assumed Chairmanship of ASEAN in 2025, its fifth stint since ASEAN’s establishment in 1967. Under the stewardship of Prime Minister Datuk Seri Anwar Ibrahim, ASEAN 2025 witnessed the introduction of new key initiatives including the ASEAN Community Vision 2045, which outlines a shared future for the next two decades as well as the formal accession of Timor-Leste as the eleventh member of ASEAN.

The SC championed Malaysia’s ASEAN leadership through its Chairmanship of the ASEAN Capital Markets Forum (ACMF) as well as support for the MOF’s leadership of the ASEAN Finance Track.

SC as Chair of the ASEAN Capital Market Forum

As Chair of the ACMF, SC had the opportunity to shape ACMF’s focus and priorities in alignment with national development goals through the discourse and thought leadership at the ACMF meetings and events, as well as the development and delivery of Malaysia’s Priority Economic Deliverables (PEDs) and other ACMF-related deliverables.

In 2025, the SC designed, curated and led discussions at four ACMF Deputies Meetings, three ACMF Chairs Meeting, two International Conference, and 14 technical workshops. Hosted across Malaysia and at the SC, these engagements provided not only vibrant platforms for learning and shared progress but also an appreciation for Malaysian culture and history.

SC’s Priority Economic Deliverables – Supporting the Ministry of Finance’s Leadership of the ASEAN Finance Track

PEDs are key actionable initiatives that are set by each ASEAN Chair. Under the Finance Track, led by the MOF, the SC produced four deliverables through two PEDs, nestled within the Strategic Thrust of Fostering an Inclusive and Sustainable Future.

The two PEDs focused on Accelerating the Growth of a More Sustainable, Connected and Inclusive ASEAN Capital Market, and Catalysing Access to Financing for a Climate Resilient and Just Transition in ASEAN.

Accelerating the Growth of a More Sustainable, Connected and Inclusive ASEAN Capital Market

Charting the next five years for ASEAN capital markets

Aligned with the ASEAN Community Vision 2045 and the ASEAN Economic Community (AEC) Post-2025 Vision and in its role as ACMF Chair, SC led the development of the ACMF Action Plan 2026–2030 (Action Plan) which highlights the critical role of capital markets in supporting the region’s long-term economic resilience, competitiveness, and sustainability agenda. The Action Plan was successfully launched on 6 November 2025, signifying an advancement in ASEAN’s journey towards building a more integrated, sustainable, and innovationdriven regional capital market, and strengthening the region’s positioning within the global capital market and financial landscape.

The Action Plan also complements the SC’s CMP 2026- 2030, particularly its focus on strengthening Malaysia’s regional connectivity. Through this alignment, the Action Plan reinforces Malaysia’s commitment to advancing regional capital market development and supporting the internationalisation of Malaysian companies, while deepening Malaysia’s role as a gateway for cross-border investment and fund-raising within ASEAN.

The Action Plan establishes five Strategic Thrusts that guide ASEAN’s collective priorities. These thrusts are anchored by the strengthening of ACMF’s institutional capacity and governance, advancing sustainable and resilient ASEAN, promoting inclusivity and financial empowerment, deepening regional integration and global positioning, and accelerating digitalisation and innovation across ASEAN markets. Together, these thrusts advance the region’s objectives of fostering sustainable growth, deepening market integration, broadening investor participation, and harnessing technology to enhance the competitiveness and resilience of ASEAN capital markets.

The Action Plan further identifies 11 key priorities and 18 external-facing initiatives designed to deepen market connectivity, enhance sustainability, and promote inclusive growth across ASEAN capital markets. Among these are cornerstone initiatives such as supporting climate adaptation through the mitigation co-benefit, Adaptation for Resilience Guide (mARs Guide), promoting SME sustainability disclosures through the ASEDG, promoting ASEAN as a distinct asset class through the ASEAN Diamonds and ASEAN Indices initiatives, strengthening financial literacy and capacity building, and encouraging responsible use of AI in the capital market.

Mitigating Systemic Risks And Promoting Financial Stability

Enhanced Risk Governance Framework

In 2021, the SC-wide risk governance framework was enhanced as part of an overall initiative to have an effective integrated and predictive risk surveillance to maintain regulatory agility.

The structured risk governance framework integrated the wider spectrum of risks such as technology, cyber and conduct risk at the SC’s Systemic Risk Oversight Committee (SROC) and Accounting, Market and Corporate Surveillance Committee (ACMS).

Intensified surveillance

The SC continued to intensify its surveillance of systemic risk to maintain market resilience and stability. Regular SROC engagements were held to deliberate concerns emanating from various segments across the capital market. Domestic equity and bond market, foreign fund flows and trade participation continued to be monitored closely for potential stress points.

In addition, measures and economic stimulus packages introduced by the government to weather the impact of COVID-19, market trading conduct and the financial position of listed companies were among the focus areas for discussion.

Thematic assessments

The SC also conducted thematic assessments covering investors’ fund flows, the position of firms, and policy decisions to ascertain the possible impact on the capital market. In 2021, the SC reviewed and enhanced its crisis indicators on potential emerging risks in the
capital market.

The enhanced crisis indicators provided a reference point for escalation to SROC when the identified indicators and triggers materialised and ensured prompt response to manage and prevent any issues of concern that might lead to a systemic crisis.

Joint regulatory discussions

In 2021, the SC conducted frequent joint regulatory discussions with other authorities such as Bank Negara Malaysia (BNM) and Labuan Financial Services Authority (Labuan FSA) to identify systemic risk concern areas within the financial and capital markets in Malaysia.

Monitoring of various components of the capital market

The SC continued its efforts to undertake a methodological and integrated approach to ensure any potential systemic risk was being monitored, mitigated, or managed. Figure 1 highlights the findings from the following risk assessments on the various components of the capital market.