Skip to content 
The stock market in Malaysia is run by Bursa Malaysia, the national exchange where shares of listed companies are bought and sold through licensed stockbrokers. To take part, an investor needs a Central Depository System (CDS) account and a trading account, and shares are traded in board lots of 100 units with settlement two market days after the trade.
This guide explains how the Malaysian stock market is organised, who regulates it, how a trade works from order to settlement, and the habits that help beginners start sensibly.
Key takeaways
- Bursa Malaysia is the stock exchange; the Securities Commission Malaysia (SC) regulates the capital market.
- Companies list on the Main Market, the ACE Market or the LEAP Market, each with different requirements.
- The FBM KLCI tracks the 30 largest companies on the Main Market by market capitalisation.
- You need a CDS account and a trading account with a stockbroker before you can buy shares.
- Shares trade in board lots of 100 units and settle on T+2.
What is Bursa Malaysia?
Bursa Malaysia is the exchange holding company that operates Malaysia’s stock and derivatives markets. When people talk about the stock market in Malaysia or “the KLSE”, they usually mean the securities market run by Bursa Malaysia in Kuala Lumpur.
Listed companies raise money by selling shares to the public. Once listed, those shares trade between investors on the exchange, and prices move with supply and demand, company results and wider economic news.
Who regulates the Malaysian stock market?
The Securities Commission Malaysia (SC) is the statutory regulator of the capital market. It licenses market intermediaries, oversees fundraising and enforces securities laws. Bursa Malaysia, as a frontline regulator, supervises listed companies and its participants under its listing and trading rules.
For investors, this means two practical things: deal only with licensed stockbrokers and advisers, and check the SC’s investor alert list if an offer sounds too good to be true.
The Main Market, ACE Market and LEAP Market
| Market | Who lists here | What it means for investors |
|---|---|---|
| Main Market | Larger, established companies | Most well-known Malaysian companies and the FBM KLCI constituents trade here |
| ACE Market | Growth companies of any size, sponsored by an approved adviser | Potential for growth, often with higher risk and lower liquidity |
| LEAP Market | Small and medium enterprises | Open only to sophisticated investors |
Beginners usually start with Main Market companies, because they tend to be larger, better researched and easier to buy and sell.
What is the FBM KLCI?
The FTSE Bursa Malaysia KLCI, or FBM KLCI, is the headline index of the Malaysian stock market. It tracks the 30 largest companies on the Main Market by market capitalisation that meet the index rules. When the news says “the market fell today”, it usually refers to this index.
An index is a useful gauge of overall market mood, but it is not the whole market. Hundreds of smaller listed companies can move quite differently from the 30 index constituents.
How buying and selling shares works
Every trade on Bursa Malaysia goes through a stockbroker, known as a participating organisation. The basic flow is simple.
- Open a CDS account and a trading account with a stockbroker.
- Fund your account or arrange a trading limit, depending on the broker.
- Place an order for a stock, choosing the quantity in board lots of 100 units and the price you are willing to pay.
- If your order matches a seller’s order, the trade is executed.
- Settlement takes place two market days later (T+2), when payment is made and the shares are credited to your CDS account.
Brokerage fees, clearing fees and stamp duty apply to each trade. Check your broker’s current fee schedule, because small trades can be expensive in percentage terms once fixed minimum fees are included.
Trading hours and market days
Bursa Malaysia trades on weekdays except public holidays, in a morning and an afternoon session with a break in between. Each session opens with a pre-opening phase in which orders are collected before matching begins. Exact times can change, so check Bursa Malaysia’s official trading calendar and your broker’s platform.
Dividends and tax basics for Malaysian shares
Many Malaysian companies pay dividends. Under the single-tier system, dividends paid by Malaysian companies are generally not taxed again in the hands of shareholders. From the year of assessment 2025, however, individuals with dividend income above RM100,000 in a year pay a 2% tax on the amount above that threshold, subject to the rules and exemptions set by the Inland Revenue Board.
Gains from selling listed shares are generally not taxed for individual investors who are not trading as a business. Tax rules change, so confirm your position with a tax adviser.
How to start investing sensibly
Starting is easy. Starting well takes a little more thought. These habits help.
- Build an emergency fund before investing money you may need soon.
- Learn to read a company’s financial statements before you buy its shares.
- Begin with a small amount and a short list of companies you understand.
- Spread your money across several companies and sectors.
- Keep a written reason for every purchase, and review it each quarter.
Our Financial Analysis & Investment Fundamentals with AI course, led by Chartered Accountant Stanley Ng, teaches beginners how to read financial statements, judge valuation and use AI tools for research. Session 1 is free.
Frequently asked questions
Is Bursa Malaysia the same as KLSE?
KLSE was the former name of the Kuala Lumpur Stock Exchange. Today the exchange is operated by Bursa Malaysia, though many investors still use the old name.
How much money do I need to start investing in Malaysian stocks?
There is no fixed minimum, but you must buy at least one board lot of 100 units. The cost depends on the share price plus fees, so a 100-unit lot of a RM1 share costs about RM100 before fees.
What is T+2 settlement?
It means a trade is settled two market days after the trade date, when cash and shares change hands.
Who regulates the stock market in Malaysia?
The Securities Commission Malaysia regulates the capital market, while Bursa Malaysia supervises listed companies and market participants under its rules.
Can beginners learn stock investing in a course?
Yes. A structured course helps you learn how to read financial statements, value companies and manage risk before you commit real money.
Want structured guidance? Albertstein Consultancy runs stock market and investment courses in Malaysia, live on Zoom and in person in Kuala Lumpur. See our investment courses and upcoming sessions or contact us.
This article is for educational purposes only and is not investment, tax or legal advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.