Kuala Lumpur Stock Exchange (KLSE) — now Bursa Malaysia Key takeaways
The Kuala Lumpur Stock Exchange (KLSE) is the former name of Bursa Malaysia, the principal securities exchange in Malaysia and one of the largest in ASEAN.
Bursa Malaysia operates a fully integrated marketplace offering trading, clearing, listing, depository, and settlement services.
Its main benchmark is the FTSE Bursa Malaysia KLCI, composed of the 30 largest listed companies by market capitalization.
Listed instruments include equities, bonds, derivatives, exchange-traded products (ETPs), REITs, and Shariah‑compliant (Islamic) securities.
Companies can list on the Main market, the ACE market (growth companies), or the LEAP market (small‑ and mid‑cap issuers). What Bursa Malaysia is and how it works
Evolution: The exchange originated in 1930 and, after several name changes and structural reforms, adopted the Bursa Malaysia identity following demutualization. It now functions as a shareholder‑owned corporation operating the national capital market.
Market infrastructure: Bursa Malaysia provides end‑to‑end services—trading, clearing and settlement, listing regulation, and custody—using an automated trading system.
Products traded:
Equities and preferred shares
Bonds and sukuk (Islamic bonds)
Derivatives (futures and options)
Exchange‑traded products (ETFs and ETPs)
Real estate investment trusts (REITs)
Shariah‑compliant instruments via its dedicated Islamic market platform
* Indices: The FTSE Bursa Malaysia KLCI (formerly the Kuala Lumpur Composite Index) tracks the 30 largest companies and serves as the exchange’s primary benchmark. Explore More Resources
Listing segments
Main market: For established, larger corporations meeting stricter listing and governance standards.
ACE market: Targeted at high‑growth and innovative companies with growth potential but less established track records.
LEAP market: Designed for small and medium enterprises seeking capital with lighter disclosure requirements. Islamic market and Shariah compliance
Bursa Malaysia actively promotes Shariah‑compliant capital markets to serve Malaysia’s Muslim majority and international Islamic investors.
* The exchange lists domestic and offshore Islamic assets and maintains processes to screen and certify Shariah‑compliant securities. Explore More Resources
Regulation and market developments
Bursa Malaysia collaborates with regulators (e.g., the Securities Commission) and international exchanges to enhance product offerings, market integrity, and transparency.
Product evolution: The exchange has considered expanding ETF types and revising short‑selling rules to broaden investor choices—proposals have included futures‑based, leveraged, inverse, physically backed commodity, and synthetic ETFs.
Short selling: Restrictions historically limited short selling to certain ETF units; regulatory consultations have explored loosening these limits. Investing considerations
Foreign investors can access the Malaysian market directly or via mutual funds, ETFs, and American depositary receipts (ADRs) where available.
Consider market structure, liquidity, currency exposure, and Shariah compliance (if relevant) when evaluating Malaysian securities.
For exposure to derivatives or sophisticated ETF strategies, review product specifications and regulatory status before investing. Explore More Resources
Brief history
Founded in 1930 as the Singapore Stockbrokers' Association, the exchange evolved through several names and milestones:
Public securities trading began in 1960.
Incorporated as a company in the 1970s.
Demutualized in the early 2000s, transitioning from member ownership to a shareholder‑owned exchange and adopting the Bursa Malaysia name.
The exchange later implemented a fully automated trading system to modernize operations. Sources
Bursa Malaysia — corporate and market information Explore More Resources