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Bursa Malaysia

Name Bursa Malaysia (Malaysian Exchange)
Country Malaysia
Number of listed companies 904
Domestic market capitalization 455773 million US$
SSE Partner Exchange Yes
Has annual sustainability report Yes

  • Bursa Malaysia has several years’ worth of standalone sustainability reports available on its website.
ESG reporting required as a listing rule Yes

  • In October 2015, Bursa Malaysia issued amendments to the Main Market Listing Requirements (“Main LR”) and ACE Market Listing Requirements (“ACE LR”) (collectively referred to as the “LR”) relating to sustainability statements in annual reports (“Sustainability Amendments”). Under the Sustainability Amendments, listed issuers are required to disclose a narrative statement of the management of material economic, environmental and social (“EES”) risks and opportunities (“Sustainability Statement”) in their annual reports. This replaces the existing statement on the corporate social responsibility (“CSR”) activities or practices required to be disclosed by listed issuers. For the Main Market listed issuers, they are also required to include in their Sustainability Statement, the prescribed information as set out in Practice Note 9 of the Main LR such as the governance structure, the scope of the Sustainability Statement and the management of material EES risks and opportunities (“material sustainability matters”). The prescribed disclosure is not applicable to ACE Market listed corporations given the type and size of the listed corporations. In addition to the above, the LR also encourages all listed issuers to refer to the Sustainability Reporting Guide (described below) as a best practice when preparing the Sustainability Statement and in identifying material sustainability matters. The Sustainability Amendments take effect on a staggered basis over a period of 3 years, starting from 31 December 2016 to 31 December 2018.
  • Further details of the Sustainability Amendments are available at the following links:

Has written guidance on ESG reporting Yes

  • In tandem with the Sustainability Amendments issued in October 2015, Bursa Malaysia also issued a Sustainability Reporting Guide (“Guide“)  to aid listed issuers in embedding sustainability in their organisations and reporting on it. Compliance with the Guide is voluntary.
  • Listed issuers are strongly encouraged to follow the Guide as a best practice. The guide is further supplemented by Six Sustainability Toolkits on Governance, Materiality Assessment, Materiality Matrix, Stakeholder Engagement, Stakeholder Prioritisation Matrix and Themes & Indicators (“Toolkits”). The Toolkits provide step-by-step guidance on, among others, how to establish governance process for sustainability, perform a materiality assessment, identify and engage with stakeholders. The Guide and Toolkits replace the “Powering Business Sustainability – A Guide for Directors” published in 2010.

Offers ESG related training Yes

  • Following the launch of the new sustainability framework in 2015, Bursa Malaysia embarked on an extensive awareness building initiative amongst listed issuers and institutional investors, which includes organising a series of sustainability programmes for listed issuers. In this regard, Bursa Malaysia developed a Sustainability Engagement Series which has been ongoing since 2016, with programmes customised for: listed issuers’ directors/CEOs, CFOs and Chief Sustainability Officers, company secretaries and sustainability practitioners. The series is intended to enhance participants’ understanding of the significance of embedding sustainability into corporate strategy and implementing sustainability throughout the organisation (including preparing them in their sustainability disclosures pursuant to the amended Listing Requirements).

Market covered by sustainability-related index Yes

  • FTSE4Good Bursa Malaysia (F4GBM) Index was launched in 2014. Started with 24 constituents, F4GBM has grown by 83.3% to 44 following the December 2017 review, representing the growing adoption of ESG best practices among Malaysian listed issuers. As a listed company, Bursa Malaysia is also a constituent of F4GBM.

Has sustainability bond listing segment No

Has SME listing platform Yes

Additional information
  • Bursa Malaysia launched on April 24, 2018 BURSASUSTAIN, a one-stop portal on corporate governance and sustainability. It provides users (i.e. listed issuers, investors and other stakeholders) with ease of access to current information on corporate governance, sustainability as well as responsible investment.
  • Bursa Malaysia’s contributions to the Sustainable Development Goals (“SDGs”):
    • As an initial step in its journey to contribute to the SDGs, Bursa Malaysia had looked at the five goals put forward by the Sustainable Stock Exchanges Initiative, mapped its impacts on those goals and disclosed the same in its latest 2017 Sustainability Report. Moving forward, the Exchange will be factoring the relevant SDGs into its future strategy planning and target setting.
    • Launch of the Leading Entrepreneur Accelerator Platform (“LEAP”) Market to support small- and medium sized enterprises (“SMEs”) growth. (Source).
    • Given the importance of SMEs to the nation’s prosperity and the opportunity for Bursa Malaysia to complement its existing listing platforms with a more SME-friendly financing solution, the Exchange launched the LEAP Market on 25 July 2017. It is the first listing platform of its kind in ASEAN designed for SMEs. It seeks to provide a cost-efficient and conducive marketplace for SMEs to raise funds and realise their growth potential. This move is part of the Exchange’s commitment to Goal 8 of the Sustainable Development Goals (“SDGs”) to encourage the formalisation and growth of SMEs. It is also in line with the World Federation of Exchanges’ recommendation to enhance SME access to equity market finance.
    • Launch of the Mid and Small Cap Research Scheme (“Bursa MidS”) to enable investors to diversity their investments into smaller listed issuers. (Source). (Source).
    • Bursa MidS was introduced to provide investors with in-depth analysis into mid and small-cap listed issuers that are under-researched, helping investors to make informed decisions regarding such listed issuers and diversify their portfolio. The first phase of the scheme began in May 2017 with the objective of supporting 100 listed issuers with a market cap of between RM200 million and RM2 billion. Funded by the Capital Market Development Fund, the initiative involves 20 licensed research houses. Within a period of seven months, 421 reports which included initiation coverage, summary reports, results review and company updates were uploaded on Bursa MidS. The initiative is also supported by the FTSE Bursa Malaysia MidS Cap Index and FTSE Bursa Malaysia MidS Cap Shariah Index, which track the performance of the mid and small-cap listed issuers.
    • Continual support to various industry initiatives such as the ACCA Sustainability Reporting Awards (“MaSRA”) and National Annual Corporate Report Awards (“NACRA”) to elevate the quality of listed issuers’ sustainability reporting and practices.

Organizational model of stock exchange
  • Listed company for profit; demutualized in 2004.

Regulatory bodies

Regulatory model
Strong Exchange Self-Regulatory Organization (SRO) Model

  • Bursa Malaysia is an exchange holding company approved under section 15 of the Capital Markets and Services Act 2007 by the Securities Commission (“SC”) being the primary regulator of the capital market. Bursa Malaysia is the frontline regulator and has the duty to maintain a fair and orderly market in the securities and derivatives that are traded through its facilities. In this regard, Bursa Malaysia has put in place a comprehensive and effective regulatory and supervisory framework to regulate the market, its participants and listed issuers. In this respect, Bursa Malaysia has issued various sets of rules to stipulate the requirements that need to be met by the regulated entities either upon admission and/or on a continuing basis. It administers and monitors compliance with these rules and takes strict, prompt and objective enforcement action for breaches of these rules. Bursa Malaysia actively supervises the listed issuers and the participants. It also undertakes surveillance over the trading activities in the marketplace. The SC supervises and monitors Bursa Malaysia to ensure that Bursa Malaysia performs its regulatory duties and obligations in an effective manner. Under the law, the SC’s approval is required for changes to Bursa Malaysia’s rules.

About the stock exchange
Location: Kuala Lumpur, Malaysia.

  • Established in 1973, Bursa Malaysia demutualised and became an exchange holding company in 2004, and subsequently listed on Bursa Malaysia Securities Berhad (MYX: 1818) in 2005. Today, it is one of the largest bourses in Asia, hosting more than 900 public listed companies across 60 economic activities. We operate and regulate a fully integrated exchange offering a comprehensive range of exchange-related facilities including listing, trading, clearing, settlement and depository services. We offer a diverse spread of products covering equities, derivatives, offshore listings and services and bonds and Islamic offerings. In assisting the development of the Malaysian capital market, Bursa Malaysia is committed to provide the infrastructure needed to create a globally competitive and vibrant marketplace. (Source).

Stock Exchange Database Criteria

The SSE maintains a database of sustainability activities for all stock exchanges that are either members of the SSE initiative and/or members of the World Federation of Exchanges. This database is the most comprehensive database of stock exchanges worldwide and contains data on all main stock exchanges. The information in this database is intended to inform investors and other stakeholders on the work stock exchanges are undertaking to advance sustainability in their respective markets.

The information provided in this database is based on publicly available information prepared by the SSE Secretariat with input from stock exchanges in most instances. Sources and explanatory notes on sustainability information have been included in individual Stock Exchange Fact Sheets. The criteria for each category can be found below.

While every effort is made to keep the information in this database up to date, please be aware that certain factors change frequently and therefore may not be exact, such as the number of listed companies or market cap.

Field

Criteria Considered

Conducts business in Country or Market in which the stock exchange operates
Number of listed companies (Date updated) Updated either by the stock exchange directly or using WFE data
Domestic market capitalization  Updated either by the stock exchange directly or using WFE data
Has signed the SSE Commitment Letter? To be considered an SSE Partner Exchange, the CEO or Chairperson of the exchange must sign an SSE commitment letter. Contact the SSE for more information if your exchange would like to join.
Has annual sustainability report? For a yes, stock exchanges must report, either in a stand alone report or integrated into their financial report, on their environmental and social impact and corporate governance.
ESG reporting required as a listing rule? For a yes, all three factors have been considered (environmental, social and governance) within the listing rules for some or all listed companies. This requirement may come from the regulatory authority or the exchange, depending on the market.
Offers written guidance on ESG reporting? For a yes, all three factors have been considered (environmental, social and governance). The SSE has developed a model guidance that all exchanges can use to develop their own guidance to issuers. For more details, click here.
Offers ESG related training? For a yes, training must have taken place in the previous 12 months, and must be interactive. The topic of the training must be on some area of sustainability.
Market covered by sustainability-related index? Sustainability-related indices may include environmental or social  indices, or ESG indices. This could include specific themes, such as low carbon indices, or general sustainability indices. The index must be specific to the market the exchange operates in (a region or world index is not included).
Has sustainability bond listing segment? For a yes, the exchange has developed the rules and regulations allowing for sustainability bonds to be listed, and provides a separate segment for listing making the bonds easy to find and identify.
Has an SME listing platform? For a yes, the exchange offers a listing platform specifically for Small-and-Medium sized enterprises.
Additional Information Additional Information captures exchanges’: sustainability section of websites,  sustainability products not captured under indices; information on future sustainability commitments and other information on the exchange
Organizational model of stock exchange Whether the exchange is listed or not, and when it was demutualized
Regulatory bodies The regulatory authority that sets listing requirements and capital market regulation for the exchange's market
Regulatory model

The extent to which exchanges have regulatory authority in their market. This may include: 

  • Limited exchange SRO
  • Strong exchange SRO
  • Independent member SRO
  • Government (Statutory)
  • Non-SRO
About the stock exchange The location of the headquarters of the exchange, and any additional details about the stock exchange.