Summary And Highlights for Malaysia’s Bond and Sukuk Market from Capital Market Masterplan (2026-2030)

The document establishes the bond and sukuk market as a critical component of Malaysia's financial architecture, having demonstrated consistent growth and resilience.

• Market Size and Dominance: As of 2025, the total bonds and sukuk outstanding stood at RM2.2 trillion, a significant increase from RM1.6 trillion in 2020. This segment is a primary driver of fundraising, consistently accounting for at least 85% of total funds raised in the Malaysian capital market over the preceding five years.
• Comparison with Banking Sector: The document highlights the capital market's growing systemic role by noting that its total size (RM4.3 trillion in 2025) has surpassed banking sector assets (RM3.8 trillion). This deepens the market's function in directly mobilizing private capital for the economy.
• Sukuk Leadership: Malaysia's global leadership in Islamic finance is a central theme. Sukuk dominates the domestic market, holding a 64% share of total bonds outstanding and an even more substantial 85% of the corporate bond segment in 2025. Malaysia is recognized as the world leader in sukuk issuance, accounting for approximately 36% of the global market.

The document outlines the key performance indicators and regulatory advancements that have shaped the market in recent years.

Government Securities: Government bonds and sukuk grew at a compound annual growth rate (CAGR) of 7.6% between 2021 and 2025, outpacing nominal GDP growth. This increased the government debt-to-GDP ratio, which the CMP acknowledges will require moderation in the future due to fiscal discipline targets.

Sustainable Finance: A standout performer has been the corporate Sustainable and Responsible Investment (SRI) sukuk market. It experienced explosive growth at a CAGR of approximately 58%, rising from RM5.3 billion in 2020 to RM52.3 billion outstanding by the end of 2025. This growth is fueled by issuer and investor demand for ESG-compliant instruments.

Guidelines and Frameworks: New or refined guidelines were introduced, including the Guidelines on Issuance of Corporate Bonds and Sukuk to Retail Investors (2024), the Credit Rating Agency (CRA) Guidelines (2023), and the SRI-Linked Sukuk Framework (2022).

Market Infrastructure: The Bond + Sukuk Information Exchange (BIX) was further developed as a centralised information platform, providing comprehensive access to pricing, issuance data, and analytical tools to enhance market transparency.
 

3. Strategic Vision for 2026-2030: Reshaping and Recalibrating

The CMP's vision for the next five years is to "reshape and recalibrate" the market, with the bond and sukuk market playing a central role in achieving the four strategic outcome themes.
 

4. Concluding Thoughts: The Path Forward

The Capital Market Masterplan 2026-2030 envisions a future where Malaysia's bond and sukuk market is not only larger but also more sophisticated, inclusive, and impactful. The strategic framework moves beyond simply growing outstanding sizes to actively shaping the market's composition and purpose. Key takeaways include:

• Deepening the Market's Role: The bond market is expected to remain the primary engine for corporate and government fundraising, with a renewed emphasis on channeling funds towards sustainability goals.
• Ethical Leadership as a Differentiator: The integration of Maqasid al-Shariah principles into the ICM framework is a pioneering effort to differentiate Malaysian Islamic finance globally, appealing to a growing cohort of values-based investors.
• Inclusivity as a Growth Driver: By facilitating retail access and supporting MSME financing through alternative credit channels, the market is being intentionally broadened to support wealth creation for all Malaysians.
• Execution is Key: The document stresses that the "measure will be in execution." The ambitious targets for market size (RM5.8-6.3 trillion), sustainability finance (RM90-100 billion), and foreign assets (RM100-110 billion) are explicitly tied to the successful implementation of the CMP's initiatives, underpinned by a foundation of regulatory and governance excellence.

In summary, the document presents a comprehensive and ambitious plan that reaffirms the centrality of the bond and sukuk market to Malaysia's economic future, while charting a clear course for its evolution into a more sustainable, inclusive, and regionally integrated engine of growth. For full report, you may read the document at Capital Market Masterplan (2026 to 2030) in Securities Commission Malaysia (SC) websites or click the link here.