Share Investment Companies in Malaysia

A share investment company in Malaysia is a company that is licensed by the Securities Commission of Malaysia to carry on business in securities. The company must have a minimum paid-up capital of RM5 million and must be a public company. The company’s objects must be restricted to the carrying on of business as a share investment company and it must not carry on any other business.

A share investment company must invest at least 70% of its total assets in equity securities listed on Bursa Malaysia. These equity securities must have a market capitalisation of at least RM500 million. The company may also invest up to 30% of its total assets in unlisted equity securities, real estate investment trusts, debt securities and money market instruments.

A share investment company must distribute at least 90% of its net income after tax to its shareholders as dividends. The company must also maintain a paid-up capital of at least RM5 million at all times.