I am rather sceptible about the above investor protection rankings, it does not seem to resonate with what is really going on at the ground. I think it says more about the World Economic Forum and The World Bank than about Investor Protection in Malaysia.
Funds raised from IPOs seems to be clearly lower than the previous years. If that is because of more stringent filtering resulting in higher quality companies, then that is perfectly fine with me.
The years before saw their fair share of lower quality companies and rehashed "listing-delisting-relisting" cases (here, here and here).
Retail participation in trading seems to be decreasing quite a bit. Possible this has a lot to do with that:
In Singapore there is a similar pattern, disappointing returns and less interest from retail investors.