KUALA LUMPUR: Malaysia is aiming to align its real economy with ongoing developments in the capital market as the nation reinvents its economic framework, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said that the country is working to elevate its industries to foster wealth creation to ensure a more equitable distribution of prosperity across society and promote growth across the diverse economic sectors to propel the nation forward.

"What's critical for the capital market is its role in facilitating growth—providing businesses with the capital they need to expand, opening up opportunities across various market segments, and accelerating economic progress for Malaysians," he said during a Fireside Chat Session at the 63rd World Federation of Exchanges (WFE) General Assembly and Annual Meeting today.

Amir Hamzah noted that Malaysia's economy has been performing well this year, with growth averaging 5.2 per cent over the first three quarters.

He also highlighted the increased vibrancy in Bursa Malaysia, with the benchmark FTSE Bursa Malaysia KLCI surpassing the 1,600-point mark and the total market capitalisation hitting RM2 trillion.

More significantly, he pointed out that 46 new initial public offerings (IPOs) have been introduced this year across the Main Market, ACE Market, and LEAP Market. "This represents strong connectivity within the market pipeline," he said.

He also noted that 11 companies from the ACE Market successfully transitioned to the Main Market this year.

"This is an encouraging trend, as it showcases a healthy progression of companies up the market chain," he added.

He expressed optimism about Malaysia's long-term market prospects, driven by consistent IPO activity and a vibrant pipeline of growth-ready businesses," he said.

Meanwhile, Amir Hamzah emphasised Malaysia's position as a major beneficiary of global supply chain disruptions, particularly due to its strong presence in the electrical and electronics (E&E) sector.

He noted that Malaysia accounts for approximately seven per cent of global trade in E&E and 17 per cent of the global semiconductor market.

The government is focused on creating a robust ecosystem to attract and retain multinational corporations.

"The goal is to ensure Malaysia remains a comfortable choice for these companies by building a skilled talent pool, strengthening supply chains, and improving logistics infrastructure," he said.

He also highlighted the importance of government-linked investment companies (GLICs) channelling funds into private markets to develop these ecosystems.

"By investing in such initiatives, we are building long-term resilience for the domestic economy," he added.