Singapore Firms Eye Malaysian Market Amid Regional IPO Rebound

As global and regional stock markets anticipate a rebound in 2025, Singapore-based semiconductor companies Grand Venture Technology and UMS Integration are seizing the moment to secure secondary listings on Bursa Malaysia. This move, approved by the Securities Commission Malaysia in late March, reflects a broader trend of firms looking to Malaysia’s vibrant market to expand their investor base and capitalize on the country’s recent IPO success. But with geopolitical tensions and economic uncertainties looming, particularly from US trade policies, the road ahead for South-east Asian markets remains fraught with challenges.

A Strategic Move to Malaysia

Grand Venture Technology, listed on Singapore’s Catalist board since 2019, announced on March 24 that it had received approval for a secondary listing from the Securities Commission Malaysia. The company, with operations in Penang and Johor Bahru, is now working with advisers to finalize the next steps. “The company will provide an update through an announcement on SGXNet as and when there are material developments in this respect” a spokesperson told The Straits Times.

Similarly, UMS Integration, another Singapore-based semiconductor firm, secured its approval on March 26. The company’s chairman and chief executive, Andy Luong, emphasized the strategic intent behind the move. “UMS’ secondary listing is aimed at broadening investor reach and widening investor base, as well as improving share liquidity and supporting the group’s growth in the coming years” he said in response to queries from The Straits Times. UMS has also acquired additional land in Penang to expand production facilities, anticipating increased demand from key customers, though Luong clarified there are no immediate plans to raise funds through this listing.

Both companies are following a growing trend among regional firms looking to tap into Malaysia’s stock market, which has defied global downturns in recent years. Unlike many markets that saw declining initial public offerings (IPOs) over the past three years, Malaysia recorded a near-20-year high in IPO launches in 2024, driven by increased foreign investment and robust economic activity. A Deloitte report from February highlighted that Malaysia hosted 55 IPOs last year, raising approximately US$1.7 billion—a 100 percent increase from 2023.

Malaysia’s Rising Appeal

Bursa Malaysia’s performance stands out in a region where other markets, including Singapore, have struggled to attract new listings. Deloitte Malaysia partner Wong Kar Choon noted in the report that active investor participation, especially from foreign investors, has boosted the market’s vibrancy, with oversubscription rates exceeding 300 times for some offerings. “As Malaysia enters a more stable growth phase after a turbulent few years, the economy is expected to benefit from the carry-over effect of this strong momentum” he said.

Experts attribute Malaysia’s appeal to a combination of favorable economic conditions and investor confidence. Chan Yew Kiang, EY’s Asean IPO leader, pointed out that while global listings trended downward, South-east Asian markets like Malaysia and Indonesia have remained resilient. “Malaysia saw increased foreign investments and economic activities that favored local domestic companies, leading to higher business demand and valuations” he told The Straits Times. Bursa Malaysia also hosted South-east Asia’s largest listing of 2024, with consumer company 99 Speed Mart Retail Holdings raising US$574 million.

Looking ahead, optimism abounds for 2025. Stephen Bates, partner and head of deal advisory at KPMG in Singapore, predicted a significant resurgence in global IPO activity, fueled by anticipated interest rate cuts, easing inflation, and strong foreign direct investment. “South-east Asia is benefiting from the recovery in global IPO markets, with Asean IPOs expected to surge in number and total raised funds” he said. The region’s expanding middle class, growing digital economy, and focus on sustainability further enhance its attractiveness for future listings.

Geopolitical Headwinds and Regional Challenges

Despite the positive outlook, risks remain. US President Donald Trump’s recent tariff announcements on April 2, which impose a baseline 10 percent on all goods imported into the US and higher reciprocal tariffs on select countries, have rattled investors. According to Bloomberg, global funds have sold over US$2.1 billion of Malaysian stocks this quarter, marking the largest quarterly outflow since mid-2018. The tariffs, worse than initially forecasted, have raised concerns about the substantial investments by US semiconductor firms in Malaysia, a key hub for the industry.

The ripple effects are felt across the region. Thailand, for instance, has seen foreign investors withdraw US$4.2 billion from its stock market over the past 12 months, the highest in South-east Asia. The SET Index, Thailand’s benchmark, has plummeted more than 15 percent in 2025, making it one of the world’s worst-performing indexes. Analysts attribute this weak sentiment to a mix of domestic economic issues and external pressures like a stronger US dollar, exacerbated by the tariff war, which has prompted capital flight from emerging markets.

Tay Hwee Ling from Deloitte South-east Asia and Singapore cautioned that while US rate cuts in late 2024 have unlocked some pent-up IPO pipelines, future listing sentiment hinges on US government policy moves. “The road ahead depends on factors such as market liquidity and geopolitical developments, which could dampen economic confidence” she said. For Malaysia, maintaining its momentum as an IPO destination will require navigating these uncertainties while continuing to attract regional companies like Grand Venture Technology and UMS Integration.

Singapore’s Struggle to Keep Pace

While Malaysia basks in its IPO success, Singapore faces challenges in reviving its own stock market. The Monetary Authority of Singapore announced measures on February 21 to incentivize listings on the Singapore Exchange (SGX), including efforts to attract secondary listings by companies with primary listings elsewhere. Trading volumes on the SGX have since surged, with the Straits Times Index reaching a high of around 4,000 points on March 28. However, no IPOs have been announced in Singapore this year, while eight companies have revealed plans to delist—a stark contrast to Malaysia’s bustling market.

The divergence between the two markets underscores differing economic strategies and investor sentiments. Singapore’s focus on incentives and secondary listings may eventually bear fruit, but for now, firms like Grand Venture Technology and UMS Integration are looking across the border for growth opportunities. Their decisions reflect a pragmatic approach to accessing Malaysia’s investor base and liquidity, even as Singapore works to regain its footing as a regional financial hub.

Looking Ahead

As South-east Asia braces for a potential IPO rebound in 2025, the secondary listings of Singaporean firms in Malaysia signal a vote of confidence in Bursa Malaysia’s resilience. Yet, with US tariffs casting a shadow over regional markets and investor jitters mounting, the balance between opportunity and risk remains delicate. For companies like Grand Venture Technology and UMS Integration, the move to Malaysia could mark a pivotal step in their growth trajectories—if global headwinds do not disrupt the region’s economic recovery. Meanwhile, questions linger about whether Singapore can reclaim its status as a listing destination or if Malaysia will continue to lead the way in South-east Asia’s capital markets.