KUALA LUMPUR: A research house has called on the government to allocate more funds to brokerages and licensed investment firms under Budget 2026 to support financial education initiatives aimed at improving financial literacy and investment awareness among the public.
Berjaya Research Sdn Bhd research head Kenneth Leong said a larger allocation would enable these firms to run structured financial literacy programmes that can strengthen knowledge and awareness among retail investors.
“That could address the gap in low retail investor participation, which has remained below 20 per cent of the average daily total trading value since the start of the year,” he told Bernama.
He explained that better financial education will empower the public to make informed investment decisions, reduce vulnerability to scams or speculation, and foster a more resilient investor base.
Leong also highlighted the importance of maintaining the private retirement scheme (PRS) tax relief, which was introduced in 2012 and extended until 2030.
He said the continued tax relief would encourage more investors to channel their funds towards retirement savings, helping individuals build long-term financial security while strengthening investable funds within Malaysia’s capital markets.
“By promoting retirement savings, this measure can contribute to more stable and long-term institutional participation in the capital markets,” he advised.
Leong said the government should continue supporting fintech, digital asset, and blockchain developments via tax incentives as well as grants to attract investments and enhance Malaysia’s competitiveness as a regional financial hub.
“These initiatives can attract both local and foreign investments, promote innovation in areas such as digital exchanges and tokenisation, and enhance overall market efficiency. In the long run, this also supports the broader agenda of digital economy growth,” he added.
Leong also suggested that reducing transaction costs, such as stamp duties on transactions, particularly for small-volume or lower-capital trades, would encourage greater retail investor participation.
“This lowers the barriers to entry and can help improve market liquidity, making equities investing more accessible to a wider segment of the population,” he said. – BERNAMA
