Singapore Companies Target Malaysia as Regional IPO Activity Picks Up

In a bid to tap into Malaysia’s vibrant stock market, Singapore-based semiconductor companies Grand Venture Technology and UMS Integration have secured approvals for secondary listings on Bursa Malaysia in March 2025. This move signals a broader trend of regional firms looking to capitalize on a potential rebound in initial public offerings (IPOs) across Southeast Asia, even as global economic uncertainties loom large with new US trade policies casting a shadow over investor confidence.

A Strategic Shift to Malaysia

Grand Venture Technology, a firm listed on Singapore’s Catalist board since 2019, announced on March 24 that it had received approval from the Securities Commission Malaysia for a secondary listing. The company, with operations in Penang and Johor Bahru, is now working with advisers to finalize the next steps, promising updates via announcements on SGXNet. While specifics remain undisclosed, the move underscores a calculated effort to expand its investor base in a market that has shown remarkable resilience amid global IPO downturns.

Similarly, UMS Integration, another Singapore-based semiconductor player, secured its approval on March 26. Andy Luong, the company’s chairman and chief executive, told The Straits Times that the secondary listing aims to broaden investor reach, enhance share liquidity, and support growth. “The group has recently acquired more land in Penang to expand its production facilities to meet expected demand from key customers” he said. However, Luong clarified that there are no immediate plans to raise additional funds through this listing. UMS is also preparing for an extraordinary general meeting to seek shareholder approval for constitutional amendments necessary for trading on Bursa Malaysia.

These developments come as Malaysia’s stock market has defied global trends, recording a near-20-year high in IPO launches in 2024. According to a Deloitte report released in February 2025, Malaysia saw 55 IPOs last year, raising approximately US$1.7 billion—a 100 percent increase from 2023. Bursa Malaysia also hosted Southeast Asia’s largest listing of 2024 with consumer giant 99 Speed Mart Retail Holdings, which raised US$574 million. This success has positioned Malaysia as an attractive destination for regional companies seeking capital market opportunities.

Regional IPO Outlook: Optimism with Caveats

Experts are cautiously optimistic about a rebound in IPO activity across Southeast Asia in 2025, driven by anticipated interest rate cuts, easing inflation, and robust foreign direct investment. Stephen Bates, partner and head of deal advisory at KPMG in Singapore, highlighted the region’s expanding middle class, growing digital economy, and sustainability initiatives as key attractors for future listings. “The global IPO market is expected to experience a significant resurgence in 2025, following a period of subdued activity” he told reporters. South-east Asia, he added, is poised to benefit from this recovery with a surge in both the number of IPOs and total funds raised.

Chan Yew Kiang, EY’s Asean IPO leader, echoed this sentiment, noting that while global markets saw declining IPOs over the past three years, Malaysia and Indonesia have remained steady. “Malaysia saw increased foreign investments and economic activities that favored local domestic companies, leading to higher business demand and valuations” he explained. Deloitte Malaysia partner Wong Kar Choon further noted that active investor participation, especially from foreign entities, has boosted Bursa Malaysia’s vibrancy, with oversubscription rates exceeding 300 times in some cases.

Yet, risks persist. Tay Hwee Ling from Deloitte South-east Asia and Singapore cautioned that the trajectory of IPO pipelines hinges on external factors, including US government policy shifts. Recent US tariffs announced on April 2, under President Donald Trump’s administration, have introduced a baseline 10 percent levy on all imported goods, with higher reciprocal tariffs on specific countries. This has stirred concerns among investors, particularly regarding US semiconductor firms’ substantial manufacturing investments in Malaysia. Bloomberg reports indicate that global funds have sold over US$2.1 billion of Malaysian stocks on a net basis this quarter, marking the largest quarterly outflow since mid-2018.

Contrasting Fortunes: Singapore’s Struggle and Malaysia’s Momentum

While Malaysia basks in its IPO success, Singapore’s stock market faces challenges. Despite efforts by the Monetary Authority of Singapore to revive local listings—announced on February 21, 2025—with incentives for funds and secondary listings, no IPOs have been recorded in Singapore this year. Instead, eight companies have announced plans to delist. However, trading volumes on the Singapore Exchange (SGX) have risen, and on March 28, the Straits Times Index reached a new intraday high of around 4,000 points, signaling some renewed interest.

In contrast, Malaysia’s economic stability and investor-friendly environment have fueled its appeal. Wong Kar Choon of Deloitte Malaysia pointed out that as the country enters a more stable growth phase after turbulent years, the carry-over effect of strong IPO momentum could further bolster its economy. “With heightened interest in IPOs by both companies and investors, as well as impressive valuations being achieved in Malaysia, there is huge potential for Bursa Malaysia to become an attractive listing destination for regional companies” he said.

Broader Regional Headwinds

The optimism surrounding Malaysia’s market contrasts with broader regional challenges, particularly in Thailand, where investor sentiment has taken a hit. Over the past 12 months, foreigners have withdrawn US$4.2 billion from Thai stocks, the highest outflow in Southeast Asia, according to Bloomberg data. Thailand’s benchmark SET Index has declined by more than 15 percent in 2025, ranking it among the world’s worst-performing indexes. Analysts attribute this to domestic economic woes compounded by external pressures like a stronger US dollar and Trump’s tariff policies, which have prompted capital flight from emerging markets.

These dynamics highlight the uneven recovery across Southeast Asia’s capital markets. While Malaysia and, to some extent, Indonesia continue to draw interest, other regional bourses grapple with volatility. The semiconductor industry, a key driver for firms like Grand Venture Technology and UMS Integration, remains particularly vulnerable to US trade policies given its reliance on global supply chains and manufacturing hubs in Malaysia.

Looking Ahead: Balancing Opportunity and Risk

As Singaporean firms pivot to Malaysia for growth, the interplay between regional economic strengths and global uncertainties will shape their success. Malaysia’s robust IPO market offers a promising avenue for companies seeking to diversify their investor base and enhance liquidity. However, the specter of US tariffs and fluctuating investor confidence underscores the fragility of this optimism. For Grand Venture Technology and UMS Integration, their secondary listings represent a strategic bet on Malaysia’s momentum, but the road ahead will demand careful navigation of both market opportunities and geopolitical risks.

As Southeast Asia’s capital markets stand at a crossroads in 2025, the question remains whether Malaysia’s success can inspire a broader regional resurgence or if external pressures will temper the anticipated IPO boom. For now, firms and investors alike are watching closely, balancing hope with caution in an evolving economic landscape.