The Securities Commission Malaysia (“SC”) issued Public Consultation Paper No. 4/2025 on a “market segmentation review” for the Main and ACE Markets of Bursa Malaysia. The SC proposes to:
- raise the Main Market profit test thresholds as follows:
- latest financial year profit-after-tax from RM6 million to RM15 million; and
- three-year aggregate profit from RM20 million to RM30 million.
- relax the current mandatory requirement for positive operating cash flow so that it becomes one factor in assessing an applicant’s financial health; and
- allow aggregation of qualifying renewable energy projects to meet the RM500 million project-cost threshold under the infrastructure project corporation (“IPC”) route.
The reforms are targeted to be implemented in the first half of 2026, with feedback due by 31 December 2025.
For the ACE Market, the SC proposes to reinforce its role as a sponsor-driven “second board” for small and mid-sized corporations by introducing a minimum ACE listing period of two years before transfer to the Main Market, tightening sponsorship and moratorium requirements, and giving the SC power to direct a transfer where criteria are met.
IPO candidates, controlling shareholders, sponsors and advisers should reassess their preferred listing route, board selection and transaction timelines, and consider responding to the consultation.
Links
- Link to Public Consultation Paper No. 4/2025.
- Links to media releases:
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