Share Margin Financing · Borrow Against Bursa Malaysia Shares

01 · The instrument

Charge, not sale

What a Malaysia stock loan actually is.

A stock loan is a financing secured by a charge over your Bursa Malaysia–listed shares. You draw cash against the value of the holding while the shares remain yours — and you recover them in full when the loan is repaid.

The mechanics are simple to state. You charge listed shares as collateral, capital is advanced against an agreed loan-to-value, and the position is held under documented custody for the term. Throughout, you keep beneficial ownership of the shares, the full economic upside of the position, and — depending on how the structure is built — your dividend entitlement and your vote.

When the loan matures and is repaid, the charge is released and the shares return to you, unchanged. The transaction leaves no permanent mark on your holding. Where the counter is Shariah-compliant, the same outcome can be achieved through a Shariah-compliant structure.

A sale ends your relationship with the company. A stock loan simply borrows against it for a while.

Sale vs. charge

This is the facility many Malaysian holders search for as share margin financing — structured to let you keep ownership, dividends and upside, unlike an outright sale — and that Singapore holders know as a Lombard loan.

The contrast with an outright disposal is the whole point. Selling realises cash but permanently removes you from the position — forfeiting the upside, potentially triggering tax, disclosure, and control consequences, and signalling to the market. A stock loan extracts only the capital you need and preserves everything else.

02 · Who it serves

Concentrated Malaysian holdings

Built for shareholders with a meaningful stake to protect.

If your wealth is concentrated in a single Malaysian-listed counter — and you would rather not unwind it — a stock loan is designed for you.

01
Founders & controlling shareholders of Bursa Malaysia–listed companies who need liquidity without diluting control or signalling a sale.
02
Major individual shareholders holding a large, long-term position they intend to keep.
03
Family holding companies consolidating listed equity across generations and entities.

04
Listed corporates with treasury or strategic cross-holdings to mobilise without divestment.
05
Pre-IPO & moratorium holders seeking interim liquidity before they are contractually free to sell.
06
Long-term shareholders who want capital today but the position tomorrow.

03 · Key terms

Structured per transaction

The terms that shape a Malaysian stock loan.

No two listed positions are alike, so terms are structured around the specific counter rather than quoted from a rate card. The framework below is indicative.

ALoan-to-value

Indicative LTV

Varies with the liquidity, volatility, free float, and concentration of the underlying share. A figure is issued only after review of the specific holding.

BTenor

12–36 months

Typical terms run from one to three years, with renewal and early-repayment mechanics agreed in the documentation.

CPricing

Interest or profit

Pricing may be fixed or floating, serviced periodically or rolled in — expressed as interest, or as profit under a Shariah-compliant structure.

DRecourse

Recourse profile

Non-recourse, limited-recourse, or full-recourse, depending on the structure and the collateral. See recourse profiles in Malaysia.

EEligible collateral

Main · ACE · Shariah

Shares on the Main Market or the ACE Market, conventional or Shariah-compliant, subject to any sector foreign-ownership limits.

FMinimum size

From RM 5M

Transactions are typically structured for positions valued from RM 5 million upward, with no defined upper bound.

04 · Mechanics

CDS · custody · corporate actions

How the charge works in Malaysia.

A Bursa position is not generic collateral. CDS account mechanics, custody, and corporate-action handling all sit at the centre of how a stock loan is built.

01
Security over the custodian account. You open an account with the designated custodian, over which the lender takes security; the collateral shares are held in that account, where beneficial ownership stays with you.
02
Custody fits the structure. Custody arrangements are matched to the agreed structure and recourse profile, with the collateral held in a manner appropriate to both.

03
Margin & top-up, documented up front. Any margin maintenance and top-up mechanics are defined at the outset, so the rules of the term are clear before funding.
04
Corporate actions & dividends. Treatment of dividends, rights, bonus issues, and other corporate actions is set out in the documentation and aligned to how the position is structured.

05 · Disclosure

Your counsel, not ours

Disclosure sits with your Malaysian counsel.

Your counsel determines disclosure — we arrange the transaction.

Any disclosure or regulatory obligations — including substantial-shareholder reporting — are a matter for your own Malaysian legal counsel, with whom we work. We arrange transactions; we are not your legal or regulatory adviser.

06 · FAQ

Common questions

Stock loans in Malaysia, answered.

01What is a Malaysia stock loan?

A Malaysia stock loan is financing secured by a charge over shares listed on Bursa Malaysia (the Main Market or the ACE Market). You charge listed shares as collateral to draw cash, while keeping beneficial ownership, the full economic upside, and — subject to structuring — your dividends and your vote. On repayment, the charge is released and the shares return to you in full. Unlike an outright sale, the position is never given up.

02Who is a stock loan for?

Typical borrowers are founders and controlling shareholders of Bursa Malaysia–listed companies, major individual shareholders, family holding companies, listed corporates with treasury or strategic equity, and pre-IPO or moratorium holders who need interim liquidity before they are free to sell. The common thread is a meaningful, long-term Malaysian-listed position the holder would rather keep than unwind.

03Can the financing be Shariah-compliant?

Yes. Where the underlying counter is Shariah-compliant on the Securities Commission Malaysia's Shariah Advisory Council list and you prefer it, the facility can be arranged on a Shariah-compliant basis — with the return expressed as profit rather than interest — alongside conventional structures. The route is confirmed per transaction.

04What LTV, tenor, and pricing apply?

Indicative LTV varies with the liquidity, volatility, free float, and concentration of the specific share, and is issued only after review of the actual holding. Tenors are typically 12 to 36 months. Pricing may be fixed or floating, serviced periodically or rolled into the structure. Recourse can be non-recourse, limited, or full, depending on the structure and collateral.

05How is the charge held and what about dividends?

The borrower opens an account with the designated custodian, and the lender takes security over that account; the shares sit in that account and beneficial ownership is preserved — with custody matched to the agreed structure. Margin and top-up mechanics, the treatment of corporate actions, and dividend handling are all documented before funding, so the terms of the position are clear for the life of the loan.

06Does charging my shares trigger disclosure?