Bursa Malaysia Announces New Renewable Energy Subsector Classification

• Introduces ‘renewable energy’ subsector under ‘energy’ and ‘utilities’ sectors 
• 13 companies reclassified under the new subsector

Bursa Malaysia Berhad ("Bursa Malaysia" or the "Exchange") today announced the addition of the ‘Renewable Energy’ (“RE”) subsector within its ‘Energy’ and ‘Utilities’ sector classifications. This addition will provide a more focused classification of Public Listed Companies (“PLCs”) operating in the RE space.

Relevance and Intended Outcome

The introduction of the RE subsector aims to offer investors with a more streamlined view of the many industries listed on the Exchange. By further segmenting the broader Energy and Utilities sectors into a more specific subsector such as the RE, investors can gain clearer insights into specific opportunities available within this rapidly growing subsector. This enhanced granularity will empower investors to make more informed investment decisions by facilitating a deeper analysis of the growth potential and challenges facing RE companies.

For PLCs, the RE subsector enhances visibility among investors focused on sustainable and environmentally-friendly initiatives. This profiling can help attract more investors, towards securing funding to scale operations, innovate, or improve operational efficiency. This can also strengthen RE companies’ market position and valuation, while contributing to long-term national economic growth and a more sustainable energy future.

Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, said, “The introduction of the Renewable Energy subsector classification underscores Bursa Malaysia’s adaptability to cater to investors’ growing interest in environmentally-friendly companies and solutions. This initiative also demonstrates our proactive support for emerging industries like renewable energy, which are instrumental in shaping a greener and more sustainable Malaysia.”

“This addition will broaden our appeal to a wider investor base, in line with Bursa Malaysia’s mission to create opportunities and grow value. We remain committed to enhancing the capital market attractiveness to investors.”  

Details of the new classification

The RE subsector classification includes PLCs involved in providing equipment and services for RE production, as well as those producing or distributing electricity through RE sources. Accordingly, Bursa Malaysia Securities Berhad (“Bursa Securities”) has updated the sector and sub-sector classification for 13 PLCs currently identified as operating within the RE space, effective from 9:00 am on 13 January 2025 (Monday).

Details of the sector and sub-sector classification for the reclassified companies are provided in the table below:

The stock numbers and stock short names for the respective securities remain unchanged. This reclassification update is based on the criteria that consider, among others, the following factors:

1. The company’s business activity
2. The contribution of the core business activity to the company’s financial results.

The update in the classification of sector and sub-sector ensures that all investors and industry participants are informed on the latest developments in PLCs across the Bursa Securities’ MAIN Market, ACE Market and LEAP Market.

All relevant updates will be reflected in Bursa Malaysia's list of sectors for classification of applicants or listed issuers, accessible on Bursa Malaysia’s website. Listed issuers and investors are encouraged to review the updated classification to understand the implications for their respective portfolios.