IT is early days yet, and analysts are understandably holding mixed views as to how the MY Value Up initiative and its execution will unfold in the next year or two, although most agree it is a step in the right direction.
MY Value Up is a voluntary initiative launched in April 2026 by the Securities Commission (SC) and Bursa Malaysia, with the objective of helping listed companies elevate long-term value creation, improve corporate valuation, strengthen governance, and make Malaysia’s capital market more attractive to domestic and foreign investors.
The programme includes the top 88 listed by market capitalisation, which would reasonably include all 30 companies on the FBM KLCI.
Companies participating in the initiative are encouraged to articulate clear mid- to long-term strategies and value creation plans, with the goal of better capital allocation and higher returns, such as improving return on equity (ROE) and total shareholder return.
IICM Conference
In a report to clients published Tuesday, CIMB Research says that the MY Value Up programme is likely to be a long-term structural reform rather than a near-term catalyst for a market re-rating.
The research house argues that investors should focus on companies already demonstrating disciplined capital allocation and shareholder-friendly policies while the initiative builds credibility.
Following the Institutional Investors Council of Malaysia (IICM) Corporate Governance Conference 2026, CIMB Research says Malaysia’s persistent valuation discount stems less from governance shortcomings than from inefficient use of corporate capital.
Malaysia’s valuation gap is increasingly a capital allocation issue, it notes, adding that excessive cash holdings, continued equity issuance and under-utilised balance sheets have weighed on earnings per share (EPS) growth and shareholder returns despite steady corporate profit growth.
Its preferred beneficiaries under MY Value Up and Government-Linked Companies Empowerment and Reform (GEAR-uP) programmes are Telekom Malaysia Bhd, RHB Bank Bhd, UEM Sunrise Bhd, Sime Darby Property Bhd and IJM Corp Bhd, all of which already exhibit stronger capital allocation discipline or have announced measurable shareholder value initiatives.
In the meantime, CIMB Research believes the MY Value Up initiative remains in its formative stages, explaining: “The programme is voluntary, with mandatory adoption only being considered from end-2027.”
The brokerage observes that only a limited number of participating companies have published quantified forward-looking targets, making it difficult for investors to assess the effectiveness of the initiative.
“We therefore expect 2026–27 to be a credibility-building phase, with investors focusing on tangible evidence such as higher capital returns, improved ROE, long-term incentive plan structures, and more disciplined deployment of excess cash,” the research house says.
It reports that Permodalan Nasional Bhd president and group chief executive Datuk Rizal Rickman Ramli had noted that Malaysia’s valuation discount should not be viewed primarily as a governance issue.
Instead, he says corporate profits have broadly tracked Malaysia’s economic growth over the past decade, but aggressive capital expenditure, frequent share issuance and conservative balance sheet management have diluted EPS growth.
CIMB Research says SC executive director of corporate finance and investments Datuk Zain Azhari Mazlan had outlined the phased implementation of MY Value Up, saying companies are expected to submit their value creation plans by the end of 2026, with public disclosure scheduled for 2027 on a voluntary basis before any decision on mandatory implementation.
“The gap Zain sees as most urgent is the deficit in forward guidance: among the companies engaged so far, only 19 have shared quantified forward targets,” the brokerage says.
Concurrently, CIMB Research reports that international experience also suggests governance reforms alone are insufficient to deliver sustained market re-ratings.
Quoting Michal Bartek of the Principles for Responsible Investment, the report says Japan’s corporate governance reforms have produced higher dividends and fewer cross-shareholdings, but much of the country’s recent market strength appears to have been driven by the global technology cycle rather than governance improvements.
Similarly, South Korea’s younger Value Up programme has yet to demonstrate a clear causal link between governance reforms and market performance, given the significant contribution from the semiconductor upcycle.
Looking ahead, CIMB Research believes investors should judge the programme based on measurable outcomes rather than disclosures alone.
The brokerage opines that investors should monitor whether companies introduce quantified three-year targets, tighten long-term incentive plans around ROE and total shareholder return, and deploy excess cash more productively.
Views on the ground
Meanwhile, a dealer at a local investment research platform tells StarBiz 7 that analysts are still unsure about how much the MY Value Up programme can achieve, judging from its current largely voluntary nature, before suggesting that listed entities would do better by engaging in more investor relations activities.
“Also, last year, Singapore launched a S$5bil Equity Market Development Programme or EQDP in February 2025 as part of broader efforts to revitalise its domestic stock market and deepen investor participation.
“Introduced by the Monetary Authority of Singapore (MAS) and the Financial Sector Development Fund or FSDF, the initiative is intended to strengthen Singapore’s asset management and equity research ecosystem while attracting greater interest in Singapore-listed companies,” the dealer says.
Through the programme, MAS will allocate capital to actively managed fund strategies that invest predominantly in Singapore-listed equities, with greater emphasis placed on those allocating a larger share of their portfolios to small- and mid-cap stocks.
“The MY Value Up programme is also seeing government-linked investment companies actively allocating capital toward committed entities – this also provides real incentive and potential buying support.
“If this becomes a more prominent focal point, especially with the mid and small caps, we believe the effects would be more predictably positive for Bursa Malaysia as a whole,” says the dealer.
Another analyst with a foreign brokerage views the MY Value Up programme as a constructive, regulator-driven initiative that addresses a real structural issue in the Malaysian equity market, which is persistent valuation discounts despite generally solid balance sheets and profitability for many large caps.
“By targeting the top 88 companies, the programme has the potential to drive a gradual re-rating of the broader market over the next three to five years,” she says.
On the flipside, she cautions that the programme’s success depends heavily on management commitment.
Without strong execution, she says, it risks becoming another disclosure exercise with limited impact.
“Public value-creation plans only ramp up meaningfully from 2027 onward, so near-term market impact in 2026 is likely modest.
“Not all 88 companies will benefit equally.
“The 30 FBM KLCI names may see less upside compared to selected names outside the premier index with stronger improvement potential,” says the analyst.