Technology & Digital Economy: Consolidation and Capability Building
The Malaysian technology sector continues to experience robust interest in fintech, cloud services and artificial intelligence. With the launch of National Digital Economy Blueprint (MyDIGITAL) entering its later phases, companies are increasingly seeking strategic acquisitions to scale up digital capabilities and regional reach.
Expect heightened activity in fintech and enterprise software, with local startups becoming acquisition targets for regional players. Cross-border M&A is likely to grow, especially with Singapore, Indonesia, and Vietnam-based firms looking for market access or technological synergy.
Energy & Renewables: Greener Growth, Strategic Realignment
Driven by Malaysia’s pledge to achieve net-zero emissions by 2050 and the ramp-up of the National Energy Transition Roadmap (NETR), the energy sector is undergoing structural transformation. M&A deals in 2025 will likely focus on portfolio optimization among oil & gas players and strategic investments in renewable assets.
Mid-sized players may divest non-core assets, creating opportunities for consolidation. Foreign institutional investors are also expected to seek stakes in solar and hydro projects, lured by green energy incentives and regulatory support.
Healthcare & Life Sciences: Regional Expansion and Vertical Integration
The healthcare sector remains a strong M&A magnet in Malaysia, underpinned by rising demand for private healthcare, aging demographics, and the growing popularity of medical tourism. Pharmaceutical, diagnostics, and digital health segments are all drawing investor attention.
2025 will see increased M&A in specialized healthcare facilities, telemedicine platforms, and medtech firms. Regional groups may seek to deepen their footprint in Malaysia by acquiring established local providers.
Consumer & Retail: Rebalancing Portfolios Amid Evolving Demand
Consumer-facing industries are navigating shifting consumption patterns and cost pressures. While traditional retail continues to recover from pandemic-era disruptions, digital-native brands are leading consolidation efforts to gain economies of scale.
Deal flow in 2025 is expected to be driven by consumer goods firms rebalancing portfolios—divesting legacy brands while acquiring high-growth, digital-first companies. E-commerce logistics and food delivery platforms are also ripe for M&A, particularly among mid-tier players.
Financial Services: Fintech Disruption and Strategic Consolidation
The financial services industry is under pressure from digital disruption, rising compliance costs, and the need to modernize legacy infrastructure. M&A activity is being led by both incumbents and new entrants aiming to capture underserved market segments.
2025 may see more tie-ups between banks and fintechs, as well as consolidation among smaller insurance and asset management firms. Islamic finance players are also exploring M&A to strengthen their regional positions.
Real Estate & Infrastructure: Recovery-Driven Restructuring
While the property sector has shown signs of recovery, oversupply in segments like high-end residential and retail continues to weigh on sentiment. However, infrastructure-focused deals are gaining traction, especially in transport and logistics.
The government’s infrastructure push and the Johor-Singapore Special Economic Zone (SEZ) will likely drive M&A in construction, logistics, and industrial real estate. REIT consolidation may also pick up as sponsors seek better capital efficiency.
In-Brief
Malaysia’s M&A market in 2025 will be shaped by both opportunity and necessity - opportunity in digitalization, sustainability, and regional integration, and necessity driven by margin pressures, succession planning, and global economic headwinds. While deal-making may remain selective, the appetite for strategic M&A — especially in future-ready sectors signals a more mature and focused investment landscape.
Manufacturing & Industrial (24.5% GDP): Driven by exports (E&E, medical devices, automotive), Industry 4.0 adoption, and EV components. Challenges include rising costs and logistics issues.
Services (59% GDP): Strong rebound in tourism (23M arrivals), digital banking growth, e-commerce retail expansion, and rapid digital services adoption (cloud, AI, e-payments).
E&E (40% export share): Semiconductor hub with major FDI from US, Taiwan, Germany; demand rising from AI chips, EVs, IoT.
Oil, Gas & Energy: Stable O&G output; growth in renewables (2GW solar, hydrogen, battery storage), ESG and carbon markets advancing.
Palm Oil & Commodities: Strong exports to India/China; MSPO compliance and bio-based downstream industries expanding.
Construction & Infrastructure: Federal projects (MRT3, Penang LRT, Pan Borneo Highway) and private high-rise/industrial park growth.
Agriculture & Food Security: Agri-tech and precision farming on the rise; push for rice and poultry self-sufficiency.
Digital Economy & Startups (target 25.5% GDP by 2025): National AI framework, MyDigital initiatives, and strong VC funding in fintech, edtech, healthtech.
ESG & Green Finance: Mandatory ESG disclosures, growth in green sukuk/climate bonds, private sector net-zero and circular economy adoption.
Trade & Investment: Surplus maintained; benefits from RCEP/CPTPP; FDI strong in high-tech and green sectors.
Hock Soon Capital Bhd.
Slated for a mid-2025 debut on the Main Market, Hock Soon Capital Bhd. has already secured IPO approval. The listing will mark an important step in the company’s growth strategy, providing fresh capital for expansion and operational scaling.
HI Mobility Bhd.
HI Mobility Bhd. officially entered the Main Market on 28 March 2025. Its debut signals the company’s readiness to tap into wider investor interest, with expectations of further growth in the mobility and transport solutions space.
Cuckoo International (Mal) Bhd.
Cuckoo International (Mal) Bhd. made its Main Market debut on 24 June 2025. Well-known in Malaysia for its home appliance and lifestyle products, the company is leveraging the listing to strengthen market presence and fund its regional ambitions.
Reach Ten Holdings Bhd.
On 2 May 2025, Reach Ten Holdings Bhd. joined the Main Market, positioning itself for stronger visibility and access to institutional investors. Its entry comes amid increasing investor appetite for scalable Malaysian enterprises.
MMC Port Holdings Sdn. Bhd.
A major infrastructure IPO to watch, MMC Port Holdings Sdn. Bhd. is expected to debut on the Main Market in October 2025. As a significant player in port and logistics infrastructure, its listing is anticipated to be one of the year’s largest offerings.
Oriental Kopi Holdings Bhd.
Oriental Kopi Holdings Bhd. kicked off the year with a strong ACE Market debut on 23 January 2025, with shares nearly doubling on opening day. The company’s success underscores market enthusiasm for unique consumer-driven business models.
Northern Solar Holdings Bhd.
Listed on 6 February 2025, Northern Solar Holdings Bhd. represents the clean energy sector’s growing footprint on Bursa Malaysia. The listing aligns with national and global pushes towards renewable energy adoption.
Colform Group Bhd.
Entering the ACE Market on 10 February 2025, Colform Group Bhd. adds to the industrial sector’s representation. The IPO will help fund further production capacity and operational efficiency improvements.
Multiple Early-Year Entrants
The early months of 2025 also saw several other companies, including Techstore, Richtech, and iCents, make their ACE Market debuts. These listings spanned a range of sectors, showcasing the market’s role as a launchpad for emerging businesses with growth potential.
The 2025 IPOs reflect both investor confidence and the resilience of Malaysian enterprises. The Main Market continues to attract established names seeking scale, while the ACE Market remains a vital entry point for high-growth companies. With MMC Port Holdings’ anticipated listing later in the year, activity levels are set to remain strong, reinforcing Bursa Malaysia’s position as a dynamic platform for corporate fundraising.
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