Many IPOs, Little Depth!

 

Behind Malaysia’s impressive initial public offering (IPO) figures lies a far less flattering reality. The local stock exchange is not just producing many IPOs – it is also producing many small or micro-IPOs. Over the past several years, Bursa Malaysia has seen a wave of micro-IPOs raising less than RM50mil. Many companies come to market with fundraising exercises so small they resemble private placements more than meaningful public listings. 

The conversation around Bursa Malaysia has long centred on the lack of mega or “blockbuster” IPOs. That remains a serious issue. Malaysia has not consistently produced the kind of billion-ringgit listings that dominate regional exchanges such as Hong Kong, India or even Indonesia. But the rise of micro-IPOs deserves equal scrutiny because it points to something deeper about the state of Malaysia’s capital markets.

Between March 2025 and May 6, 2026, out of 50 listings on the smaller ACE Market, micro-IPOs represent 29 of them, or 58% to be exact. This partly explains the decline in total funds raised in the IPO space last year, despite an increase in the number of listings (see chart). In 2025, while there were 60 IPOs on Bursa Malaysia, the total funds raised was RM5.96bil, compared to RM7.44bil in 2024 (55 IPOs). This represents a decline of almost 20% in total funds raised. Meanwhile, average funds raised dropped from RM135.3mil in 2024 to RM99.3mil in 2025. 

The number of ACE Market IPOs has increased tremendously in less than a decade. From just six listings in 2017, a total of 44 IPOs were recorded on the ACE Market in 2025. This represents nearly three-quarters of total IPOs on Bursa Malaysia – across the Main, ACE and LEAP Markets combined. With this, Malaysia’s IPO market also topped South-East-Asia by volume. The 2025 performance was notably the highest since 2006. In 2025, the domestic equity market also saw a first secondary listing – UMS Integrated Ltd – as well as the listing of a subsidiary of a South Korea Exchange-listed company in Malaysia. Deloitte Southeast Asia Ltd, in its Southeast Asia IPO Capital Market 2025 report, said the largest IPO of 2025 – Eco-Shop Marketing Bhd – came from the consumer industry. 

In 2024, the largest IPO – 99 Speed Mart Retail Holdings Bhd – was also from the same sector. While Malaysia led the region in terms of listing volume, Deloitte noted that none of South-East-Asia’s four “blockbuster” IPOs originated from the country. The four IPOs, each raising more than US$500mil, came from Singapore, Vietnam and the Philippines. 

A stock exchange cannot thrive on listing volume alone. It needs depth. It needs scale. It needs companies large enough to attract institutional participation, analyst coverage, foreign interest and sustained liquidity. Without these, the market risks becoming crowded with small counters that generate excitement for a few trading sessions before fading into illiquidity. 

The worrying part is not merely the existence of micro-IPOs. Smaller companies should have access to public capital markets, and many successful global firms began as small listings. The issue lies in the concentration of such offerings. When too many listings raise only modest sums, it raises uncomfortable questions about the overall quality and maturity of the pipeline.

In some cases, IPO exercises appear driven more by branding, shareholder exits or short-term valuation gains rather than long-term expansion strategies. The danger is a gradual dilution of market quality. Investors begin viewing IPOs less as opportunities to participate in future corporate champions and more as short-term trading vehicles. Market confidence becomes increasingly dependent on listing pops instead of long-term value creation. 

Malaysia cannot afford that outcome. It risks being trapped in an uncomfortable middle ground where it produces many IPOs, but too few that genuinely move the needle. The irony is that Malaysia does have companies capable of scaling into larger listings. The country has strong ecosystems in semiconductors, healthcare, industrial technology, digital infrastructure and consumer brands. Regulators may also need to actively scout high-quality regional companies for listing in Malaysia. This would require more proactive “door-knocking” efforts, rather than waiting for firms to approach the exchange. 

Reference:

Many IPOs, little depth, Ganeshwaran Kana, The Star, 11 May 2026

Political Party’s Election Expenditure up to RM5b?

 

The Institute for Democracy and Economic Affairs (IDEAS) found that during an election period in Malaysia, an established political party may spend as much as RM5 billion to support its candidates and campaigning cost. 

Newer parties typically spent about RM1 million during an election period, said IDEAS. The think tank said the financing of political parties and candidates in Malaysia remains “costly, opaque, and uneven”, with established parties benefitting from stronger fundraising networks than newer ones as well as underrepresented groups. 

Source: https://my.linkedin.com/company/ideasmalaysia 

The report, which drew on interviews with politicians, party officials and political finance experts, said established parties are generally able to absorb higher operating costs and access more diversified funding streams, including corporate donations, party-linked businesses and state-linked resources. The study also highlighted rising expenditure on media and digital campaigning, including the use of analytics, videographers and social media teams to shape online narratives ahead of elections. The report also raised concerns over weak transparency and oversight in political financing, noting that parties are not legally required to disclose sources of donations, membership fees or detailed audited accounts. 

The report warned that the high cost of politics risks entrenching incumbent parties and limiting democratic competition, particularly for women, youths, ethnic minorities and lower-income groups seeking political participation. 

It also highlighted how rising financial demands increasingly shape candidate selection and internal party hierarchies, with those with access to financial resources find easier paths for political advancement. The opacity surrounding political financing, creates risks of undue influence, as donors and financiers may gain leverage over political parties and policymaking without public scrutiny. 

IDEAS also noted that some political financing practices blur the line between party and state resources, particularly when government-linked entities, welfare allocations or constituency-related programmes are used for political mobilisation. 

IDEAS called for the immediate enactment of a Political Financing Act to improve transparency and introduce clearer rules governing political donations and expenditure. 

This is not unique problem to Malaysia. The U.S. is a prime example now of how money can drive elections and “transparent” corruption is acceptable.  We can’t follow the U.S. model – it is headed for failure. We need to have the moral compass – “true North” – to frame how political funding can be regulated. Why can’t we have a pool of funds and a regulator that gives to a party according to number of members registered. 

Reference:

Established political party's election expenditure up to RM5b, IDEAS paper finds, Emir Zainul, theedgemalaysia.com, 7 May 2026

Can We Plant Trees in a Pothole?

 

There are many recognised methods for reporting potholes. Citizens can lodge complaints, submit photographs, contact local authorities or tag municipal agencies on social media while hoping their vehicle suspension survives long enough to see progress. But somewhere along the way, Malaysians appear to have developed an alternative system, one involving agriculture. A recent social media post by @dahfollowbelum showed a banana tree planted squarely inside a pothole. This has amused and impressed netizens alike. 

 

Source: https://focusmalaysia.my/@dahfollowbelum 

According to the post, the authorities quickly came to repair the road after noticing the banana tree growing there. We all know that some potholes are so well established that they feel less like temporary damage and more like unofficial landmarks. Yet the moment greenery enters the picture, everything changes. A banana tree standing defiantly in the middle of a road has a way of transforming road damage into public theatre. 

Then there are retired folks who try to repair potholes with their own tools. Why? Because they see danger for motorcyclists or even car drivers. They don’t have to do it, but it is just their way of helping local councils – who may have budget issues – tak ada bajet! 

Better is to grow bananas, jagung or other fast-growing fruits for consumption. This may help achieve food security. The only drawback is night driving – for which we could use some cheap reflectors or solar lamps to help motorists? 

Why can’t the Federal Government provide each constituency, local council with adequate funds to repair, re-tar roads? Then hold them accountable for outcomes? A re-tarred road is a great sight to see and feel. Many voters will support the initiative, something tangible and meaningful. It also provides contracts for small businesses, employment for locals and the multiplier effect locally. Today, even tolled highways are with potholes. The “tidak apa” attitude is all pervasive. Unless residents and citizens demand changes, we will have the finance minister sending money to Gaza! 

Reference:

Plant trees in a pothole to speed up the repair work, claims a netizen, CS Ming, Focus Malaysia, 25 May 2026 

 

A+ in Moral but Bankrupt in Integrity!

 

We have created a system where a student can ace Pendidikan Moral, walk out of the exam hall, and grow up believing that integrity is flexible, honesty is situational, and responsibility applies only when convenient. This is not about blaming students. It reflects a deeper contradiction within our system. 

The Education Ministry had the right intention. Moral education was meant to shape character. But somewhere along the way, it became formulaic: memorise values, learn the right keywords, reproduce model answers, secure the “A”. The result is a generation that can articulate moral principles fluently but struggles to live by them. Honestly, should we be surprised?

 

Source: https://www.wikihow.life

In classrooms, students are taught that honesty is a core value. Outside, they quickly learn what seems to matter more: results. Avoid getting caught. Cut corners if it brings advantage. Say the right things, but do what benefits you. That becomes the real lesson—the one no textbook acknowledges. 

Psychologist Lawrence Kohlberg argued that morality cannot be memorised. It develops through difficult choices, real consequences and the courage to act. Yet our system often does the opposite. It minimises risk, rewards memorisation and encourages conformity. We are not shaping character. We are teaching performance. Road rage turning violent. Academic dishonesty dismissed as minor. Public trust eroded by repeated misconduct. These are not isolated incidents. They reflect a deeper issue. We claim to value integrity but have not fully internalised it. 

So what does an A+ in Moral actually mean? It does not necessarily reflect honesty. At best, it shows that a student understands what is expected. It says little about how they will act when faced with pressure or temptation. If we are serious about change, small adjustments will not be enough. A more fundamental shift is needed. 

Moral education must move beyond exams and into lived experience. Community service should be meaningful, not a formality. Students should be exposed to real-world challenges—inequality, hardship, ethical dilemmas—so they can develop empathy and judgement. Assessment should not focus solely on written responses, but also on behaviour and accountability. 

There is also a broader issue we cannot ignore: inconsistency between what is taught and what is practised. Values promoted in schools must be reflected in wider society. When contradictions become visible, they undermine credibility. Young people are perceptive. When they see gaps between principle and practice, they may conclude that values are optional. 

As reflected in the teachings of many traditions, education is not only about producing capable individuals. It is about developing trustworthy human beings. Without that foundation, knowledge becomes a tool without direction. Malaysia risks becoming a society of high achievers with low accountability—impressive on paper, but fragile where it matters. An A+ in Moral should carry meaning. At present, it does not. Until we close the gap between what we teach and what we practise, we are not building character. We are sustaining an illusion. And illusions do not last. 

Reference:

OPINION | A+ in moral but bankrupt in integrity, K. T. Maran, Newswav, 10 May 2026

Two-Teacher Classroom Model!

 

A Newswav poll of around 2,100 respondents shows strong public scepticism towards the idea of having two teachers in a single classroom. While the Ministry of Education plans to introduce a co-teaching model nationwide from 2027, 83% voted “No”, compared to just 17% who believe it would improve student learning.

 

 

Under the proposed model, two teachers will co-teach the same class simultaneously, working together to deliver lessons, manage classroom dynamics, and support student development. According to the Education Ministry, this approach could help address mixed learning abilities, improve engagement, and reduce the burden on individual teachers. 

Internationally, co-teaching has been used in some education systems to support inclusive learning, particularly for students with different learning abilities. Education Minister has said the model is intended to promote better interaction, character-building, and classroom support, particularly in increasingly diverse learning environments. 

Poll comments reveal that most scepticism centres on priorities and practicality. Many respondents questioned whether placing two teachers in one classroom is the best use of limited resources, especially when schools continue to face overcrowded classes, teacher shortages, and heavy administrative workloads. Several felt the funding would be better directed toward improving school facilities, hiring more teachers to reduce class sizes, providing school nurses or counsellors, or offering free breakfast programmes for students. 

A common suggestion was that smaller classes, rather than co-teaching, would allow educators to focus more effectively on individual students. Others highlighted that teachers are already stretched thin by paperwork and deadlines, arguing that reforms to curriculum design, assessment methods, and school management should come before introducing new teaching models. 

As usual, the education minister is the top star for “blunders”. Can’t they do a check with Singapore, how they do it? Is it below our dignity or maruah? 

Reference:

Survey: 83% of Malaysians Unconvinced by Two-Teacher Classroom Model, Newswav,
13 May 2026

 

Malaysians See Surplus of Income Over Consumption Spending?

 

Malaysians begin to record a surplus of income over consumption spending at 29, according to the National Transfer Accounts (NTA) Malaysia 2022 report. Chief statistician Uzir Mahidin said the surplus peaks at age 44, reaching RM14,523 per capita annually, before gradually declining and returning to a deficit at around age 56. The findings are outlined in the NTA Malaysia 2022 report.

For 2022, national consumption spending totalled RM1.24 trillion, while labour income stood at RM764 billion, resulting in a Lifecycle Deficit (LCD) of RM477 billion. The deficit was financed through asset-based reallocations amounting to RM491 billion, equivalent to 103.1 percent of the deficit.

Source: https://en.wikipedia.org

In terms of income, average annual labour income per capita rose with age, peaking at 49 at RM48,379. At the same age, self-employment income also reached its highest level at RM13,042 per capita. Average consumption per capita was RM37,947. Those aged 60 to 64 recorded higher spending at RM50,429, while individuals aged 65 and above spent RM51,211. In contrast, children under four recorded lower consumption at RM26,313 per capita.

Household spending was largely driven by the private sector at RM31,564 per capita, while public sector consumption stood at RM6,382. Public sector provides targeted support across age groups, particularly in financing education for children and prioritising healthcare for the elderly.

NTA is an intergenerational economic framework used to measure how resources such as production, consumption, income and transfers are generated and distributed across different age groups. The framework is adapted from a United Nations manual to analyse the impact of demographic changes on future income and consumption patterns.

Reference;

Report: M'sians see surplus of income over consumption spending from age 29, Bernama/Malaysiakini, 29 April 2026

Is eFishery an Expensive Lesson for KWAP?

 

Indonesian aquaculture company eFishery’s co-founder Gibran Huzaifah was handed a nine-year prison sentence last Wednesday for embezzlement and money laundering. The start-up, which deployed feeders to fish and shrimp farmers in Indonesia, incurred several hundred million dollars in losses between 2018 and 2024. The business began unravelling after a board investigation revealed the company may have inflated its revenue and profit over several years. The scandal triggered widespread scrutiny over regulatory oversight and due diligence standards in South-east Asia’s venture capital markets.

 

Source: https://en.wikipedia.org

 

 This is a high-profile US$300 million scandal that not only crushed what was one of Southeast Asia’s most celebrated unicorns but also serves as a lesson for several high-profile investors. And that includes Japanese conglomerate Softbank Group and Singapore’s Temasek Holdings Pte Ltd. The lesson is perhaps more reputational for the wealthier funds. 

For Kumpulan Wang Persaraan Diperbadankan (KWAP), which invested US$47.7 million or about 24% of eFishery’s US$200 million Series D funding round in July 2023, the RM200 million eFishery lesson is expensive even though it is only 0.1% of its fund size and about 1.1% of its hitherto highest annual investment income of RM18 billion in 2024. 

The RM200 million would have been enough to give about RM9 each to 22 million adult Malaysians and is about 6% of Putrajaya’s monthly retirement charges burden of RM3.83 billion (RM40.06 billion annually) in 2024. 

That RM200 million is almost five times the much-criticised high-profile RM43.9 million investment loss at FashionValet Sdn Bhd suffered by Khazanah Nasional Bhd and Permodalan Nasional Bhd, which invested RM27 million and RM20 million respectively but exited with only RM3.1 million collectively. Some observers note that FashionValet was at least founded by Malaysians while eFishery’s founders were Indonesian. 

Yet, with KWAP’s fund size of RM200 billion not being able to grow fast enough to carry Malaysia’s public pension burden for the foreseeable future without sizeable cash injections, every ringgit should count. With a fuel subsidy bill running at RM7 billion a month, Putrajaya on April 29 instructed all its ministries, departments and agencies to review spending and propose operating expenditure cuts by May 15. 

KWAP had yet to replace Datuk Nik Amlizan Mohamed, who served as CEO from November 2020 to end-March 2026. The efishery episode serves as an expensive lesson, not just for the fund’s incoming CEO, but for every steward of public money. 

There are always risks in lending or investing. But when it is a public institution like KWAP, it needs more rigour and care of its funds. It should revise its investment manual and focus on local investments and that too in less risk-prone sectors. But a RM200 million tuition fee is too high for the CEO, the management and the Board. An independent body should produce a forensic report and revamp this institution. 

References:

Frankly Speaking: eFishery an Expensive Lesion for KWAP, GLICs, The Edge Malaysia, 4 May 2026 

eFishery Founder Gets 9-year Jail Term in $383 Million Indonesian Fraud Case, The Straits Times, 29 April 2026