Bursa Malaysia and AmInvest have launched the FTSE4Good Bursa Malaysia ETF, the first exchange-traded fund in the country that meets Malaysia’s Sustainable and Responsible Investment standards. This new fund gives investors a way to invest in companies that follow strong environmental, social, and governance (ESG) practices.

The fund follows the FTSE4Good Bursa Malaysia Index, which measures how well selected Malaysian companies perform in these areas. The companies in the index are chosen from the FTSE Bursa Malaysia EMAS Index based on clear ESG and trading requirements set by FTSE Russell and Bursa Malaysia.

The FTSE4Good Index was introduced in 2014 to promote better sustainability practices among listed companies and to help investors make more responsible investment decisions.

Supporting A More Sustainable Financial Market

According to Dato’ Fad’l Mohamed, Chief Executive Officer of Bursa Malaysia, the collaboration with AmInvest represents a step forward in promoting sustainability and innovation in Malaysia’s capital market.

“This partnership reflects our shared commitment to product innovation, investor empowerment, and advancing sustainability,” he said. “We are building a marketplace that offers greater choice, deeper liquidity, and more opportunities for investors, whether through securities, derivatives, or ETFs.”

Dato’ Fad’l added that the new ETF aligns with Bursa Malaysia’s goal of offering diversified investment opportunities, from equities and fixed income to Shariah-compliant and ESG-focused products. The FTSE4Good Bursa Malaysia ETF provides investors with access to companies that uphold strong ESG principles, helping them align their portfolios with responsible investment goals.

AmInvest Strengthens Its Leadership In ETF And SRI Segments

AmInvest currently holds the largest market share among ETF providers in Malaysia, managing approximately RM1.8 billion in ETF assets, about 75.4% of the market. It is also the leading fund manager for SRI-qualified funds, with total assets under management (AUM) of RM4.3 billion, accounting for 28.2% of the market. In total, AmInvest manages nine SRI-qualified funds.

Jamie Ling, Group Chief Executive Officer of AmBank Group, described the launch as a milestone that reinforces the Group’s commitment to sustainability. He said the ETF broadens AmInvest’s range of responsible investment solutions and supports its goal to build a more sustainable financial ecosystem.

AmInvest has a history of introducing innovative products, including Malaysia’s first bond ETF, the ABF Bond Index Fund (ABF Malaysia). The firm continues to build on that legacy by integrating sustainability across its investment offerings.

Goh Wee Peng, Managing Director of AmBank Group Wealth Management, noted that the Fund caters to rising investor demand for ethical investments. With a minimum purchase of just 100 units, investors can gain diversified exposure to Malaysian companies across banking, healthcare, utilities, telecommunications, and construction sectors.

AmInvest’s leadership in sustainable investing has been recognised through multiple regional awards, including Best Sustainable Investments – Malaysia by Citywire and Best ESG Initiative by Corporate Treasurer for two consecutive years.

ETF Market Sees Growing Interest From Younger Investors

The launch of the FTSE4Good Bursa Malaysia ETF comes at a time when Malaysia’s ETF market is showing renewed momentum, particularly among younger investors.

According to Leong See Meng, Director of Securities Market at Bursa Malaysia, investors are becoming more discerning in building their portfolios and increasingly recognise the benefits of ETFs, such as low cost, broad market exposure, and diversification.

The average daily trading value of ETFs reached RM1.41 million as at end-October 2025, representing a 53% increase compared to the same period last year. The number of retail accounts investing in ETFs has also grown, from about 4,700 at the end of 2024 to over 6,100 by October 2025.

Building Awareness And Expanding Access

Leong noted that while Malaysia’s ETF market has faced challenges such as low trading volumes since its introduction more than two decades ago, interest has grown steadily. Bursa Malaysia now lists 15 ETFs, following the recent delisting of two smaller funds due to high costs and limited size.

He added that investor education remains a key focus for Bursa Malaysia. An ETF awareness campaign held recently led to a significant rise in new trading account openings, signalling strong interest from the retail segment.

“We foresee a promising future for ETFs in Malaysia,” Leong said. “ETFs remain one of the most effective instruments for investors to build diversified portfolios with low entry and management costs.”

Learn more about ETFs and other tradeable products through the online share trading section, which explains how these instruments work in Malaysia.

Follow us on our official WhatsApp channel for the latest money tips and updates.