While investing in Malaysia continues to hold strong appeal for locals, companies listed on the Malaysian stock exchange often face challenges due to limited global footprint and reach. This is largely a result of the country’s relatively small domestic economy and population size, which restrict the market scope for these companies, confining them to a smaller operational landscape.
To illustrate this point, let’s examine Maybank, Malaysia’s largest bank and largest company by market capitalisation. Maybank derives about 90% of its net operating income exclusively from its operations within Malaysia while securing an impressive 53.1% mobile banking market share. Which prompts a relevant question: To what extent can Maybank continue to grow beyond Malaysia’s borders?
In contrast, companies in the United States enjoy access to a vast, unified market encompassing over 300 million consumers who share the same language, customs, and currency. It’s no wonder that American corporations rank among the world’s largest and most successful. Additionally, the U.S. is a hub for innovation, housing some of the most inventive companies globally.
This blend of creativity and a sizable domestic market for testing new concepts suggests that we will see the rise of fast-growing American companies capable of disrupting new industries in the years ahead. The significant market size has fuelled the remarkable growth of U.S. businesses, enabling them to expand beyond national borders and reach new heights. This unique advantage makes them especially appealing to investors worldwide.
However, cost and limitations in terms of brokerage services have constrained Malaysian investors from accessing the expansive growth opportunities presented by U.S. companies in the past. In recent years, however, the investment landscape is undergoing a transformative phase. The emergence of competitive brokerage platforms has significantly reduced the challenges that once made trading U.S. shares difficult and expensive. These platforms have made investing