Rons summary
What Changed, Why It Matters, and How It Affects You
Effective 3 June 2026 | Based on SC-GL/EG-2009 (R8-2026) and Public Response Paper No. 1/2026
The MAIN Market is being repositioned as a premier market for larger, established corporations, while the ACE Market is reinforced as a stepping-stone market for small to mid-sized companies working toward MAIN Market eligibility.
No transitional arrangements apply. All proposals submitted on or after 3 June 2026 are assessed under the revised framework.
Change 1 — Higher Profit Bar for MAIN Market Listing
What changed
Requirement Old Threshold New Threshold
Aggregate after-tax profit (3-year) RM20 million RM30 million
After-tax profit, most recent year RM6 million RM15 million
Profit track record period 3–5 years (uninterrupted) 3 years (losses permitted, aggregate still applies)
The “uninterrupted profit” rule is removed. A company may record a loss in one of the three years, provided the three-year aggregate still reaches RM30 million and the most recent year clears RM15 million.
| Requirement | Old Threshold | New Threshold |
| Aggregate after-tax profit (3-year) | RM20 million | RM30 million |
| After-tax profit, most recent year | RM6 million | RM15 million |
| Profit track record period | 3–5 years (uninterrupted) | 3 years (losses permitted, aggregate still applies) |
Change 2 — Audit Quality Now a Hard Gate
What changed
Audited financial statements across the entire profit track record period must carry:
• An unmodified audit opinion (no qualified, adverse, or disclaimer opinion)
• No statement of material uncertainty related to going concern
This applies regardless of whether listing is sought via the profit test or the market capitalisation test, and covers all proposal types under the Equity Guidelines.
An emphasis of matter (EOM) paragraph in the audit report does not constitute a modified opinion and does not trigger non-compliance, provided the underlying opinion remains clean.
Change 3 — Positive Cash Flow Becomes a Factor, Not a Rule
What changed
Positive operating cash flow is no longer a mandatory prerequisite for listing. The SC will treat it as one qualitative and quantitative factor among several when assessing whether an applicant has a healthy financial position. The SC confirmed it will assess cash flow trends, business model sustainability, earnings quality, liquidity position, and funding sources holistically over the track record period.
Who is affected
Growth-stage companies, asset-heavy businesses, and any applicant whose operating cash flow is negative in one or more years despite underlying profitability. Technology companies, infrastructure developers, and businesses with high capital expenditure cycles are the most direct beneficiaries.
Practical effect
This is a meaningful liberalisation. Under the old rule, a profitable company with temporarily negative operating cash flows — for example, due to a working capital build-up ahead of a major contract delivery — was blocked from listing. That structural barrier is removed. Companies should, however, expect the SC to probe cash flow trajectories during the review process. Negative cash flows will require a clear, documented explanation of business model, funding adequacy, and recovery timeline.
Change 4 — Renewable Energy Projects Can Now Pool to Meet the IPC Test
What changed
Under the Infrastructure Project Corporation (IPC) listing route, the SC may now consider the aggregation of project costs across multiple renewable energy infrastructure projects to satisfy the RM500 million minimum project cost threshold, subject to:
• Each individual renewable energy project having a project cost of at least RM100 million
• Prior consultation with the SC for non-contiguous projects
The 15-year minimum remaining concession or licence period requirement remains unchanged.
Who is affected
Renewable energy developers, independent power producers, and asset owners whose individual projects fall below RM500 million but whose portfolios collectively meet the threshold. This is directly aligned with Malaysia’s National Energy Transition Roadmap objectives.
Practical effect
A solar developer with five projects each costing RM120 million — totalling RM600 million — can now aggregate those costs to qualify under the IPC test. Previously, each project would need to individually reach RM500 million, which excluded most renewable energy developers from this listing route.
Non-contiguous projects (for example, a solar farm in Kedah and a hydro project in Sarawak) are not automatically excluded but require prior SC consultation. Early engagement is strongly recommended for mixed-technology or geographically dispersed portfolios.
Change 5 — ACE Market Must Now Be Earned Before Transferring to MAIN Market
What changed
A company must now be listed on the ACE Market for at least two full financial years — measured from the date of listing to the date of submission to the SC — before applying for a transfer to the MAIN Market.
The existing Accelerated Transfer Process remains available for companies with daily market capitalisation of at least RM1 billion over the preceding six months and meeting the profit requirements. Under that route, the minimum period is 12 calendar months from listing.
Financial periods prior to the ACE Market listing date do not count toward this minimum period.
Illustrative timeline
A company listing on the ACE Market on 20 August 2025 with a 31 December financial year end would complete its first full financial year on 31 December 2026, and its second on 31 December 2027. It could then submit a standard transfer application to the SC from early 2028 onward.
Change 6 — Sponsorship and Moratorium Exemptions Removed
What changed
ACE Market-listed corporations and IPO applicants can no longer apply for early exemptions from:
• The sponsorship requirement (minimum three full financial years post-listing, or one year after generating operating revenue, whichever is later)
• The share moratorium applicable to controlling shareholders, connected persons, and executive directors who are substantial shareholders
Previously, a company meeting MAIN Market quantitative criteria could apply to Bursa Malaysia for an early release from these obligations. That pathway is closed.
Change 7 — Minimum Balloted Portion Formalised for ACE Market IPOs
What changed
Where an ACE Market IPO includes an offer to the general public, a minimum portion must be allocated through a balloting process:
Enlarged Issued Share Capital Minimum Balloted Portion
Below RM200 million At least 5% of enlarged issued shares
RM200 million and above At least 2% of enlarged issued shares
These thresholds mirror the MAIN Market requirements and codify what largely existing practice was.
This report is prepared for informational purposes based on SC-GL/EG-2009 (R8-2026) and SC Public Response Paper No. 1/2026 dated 28 May 2026. It does not constitute legal or investment advice. Readers should consult a licensed principal adviser or legal counsel for guidance specific to their proposals.