Investment Funds in Malaysia: Law & Regulations

Investment Funds in Malaysia: Law & Regulations

Author: Seow Hock Peng
Publisher: UM Press
ISBN: 9789674883966
Weight: gsm
Pages: pp
Year: 2025 
Price: RM98

In Malaysia, an investment fund, often referred to as a unit trust or collective investment scheme, pools money from multiple investors and invests it in a diversified portfolio of assets like stocks, bonds, and other securities, managed by professional fund managers. Collective investment schemes include unit trust funds, real estate investment trusts, exchange-traded funds, restricted investment schemes and closed-end funds. Collective investment schemes in Malaysia started with the unit trusts. The unit trust was first established by British investors in 1959. Initially, the growth was very slow due to lack of public interest. The turning point was when the Malaysian government decided to enter into the industry by launching a government sponsored unit trust known as Amanah Saham Nasional. REITs, on the other hand, started out as Property Trust Funds (PTFs) in 1989 and re-launched in 2005. Closed-end funds were introduced in 1997. The Private Retirement Scheme (PRS) was launched in 2012. Business trust also has its origins in 2012. The collective investment schemes industry in Malaysia is growing. As at December 2024, it was reported that unit trust funds continue to be the largest component of the industry with a total net asset value (NAV) of RM 546.08 billion. The latest development in the collective investment scheme industry is where, on March 2024, the units of Prolintas Infra Business Trust were listed on the Main Market of Bursa Malaysia Securities. The introduction of the BT model expands the breadth of Malaysia’s capital market and demonstrates the capital market regulators’ earnestness in providing facilitative frameworks and  solutions.