Malaysia has a robust framework for investor protection, supported by comprehensive laws and regulations designed to safeguard the interests of all investor groups. Key legislation includes the Capital Market Services Act 2007 and the Anti-Money Laundering and Counter Financing of Terrorism Act, which provide the legal backbone for regulating market activities and preventing illicit financial practices.
Multiple enforcement agencies, such as the Securities Commission (SC), Bank Negara Malaysia (BNM) and Bursa Malaysia, work in tandem to ensure a secure investment environment. These agencies actively monitor markets, take enforcement actions, and frequently impose penalties on parties involved in fraudulent activities or regulatory breaches. For example, the SC and Bursa are known to penalize insider trading and market manipulation. The agencies maintain Investor Alert Lists (SC) and Financial Consumer Alert Lists (BNM), keeping investors informed about potential scams and fraudulent activities.
In addition to these measures, Malaysia’s investor protection framework includes supplementary safeguards, such as the Malaysian Code on Corporate Governance, which ensures accountability and transparency, particularly for minority shareholders. The Mergers and Acquisition Code provides protection during corporate transactions, while the Whistleblower Protection Act 2010 encourages the reporting of unethical practices without fear of retaliation.
These combined efforts ensure that Malaysia offers a highly protective investment environment. Promoting confidence among both local and foreign investors.
For further details, explore the resources provided by the SC and BNM.