Bursa Malaysia is dominated by large companies, particularly financial institutions and plantation companies, that are majority owned by government-linked institutions, a feature that investment analysts noted dilutes the exchange’s appeal with foreign investors who like markets with high levels of liquidity and robust trading.
Another major challenge facing the stock market is concerns over corporate governance and regulation that industry executives noted has been compromised in the past when alleged transgression of market rules involved politically well-connected companies and stock controlled by government-linked entities.
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