Malaysia is implementing crucial measures to improve investor access to the country’s capital market and increase market vigour.
The capital market, now among the largest in ASEAN, will be improved to support more economic growth, inclusivity, and sustainability, according to Datuk Seri Dr. Awang Adek Hussin, chairman of the Securities Commission of Malaysia.
He added that for the first half of this year, total funds raised in the corporate bond and equity markets were RM58.9 billion.
This indicates that a sizable portion of the private sector’s funding has continued to come from the equities and bond markets.At Invest Malaysia New York 2023, he made the statement during a panel discussion titled “Macro Resilience and Market Insights.” “The market resiliency is attributed to various factors, namely diversity, ample liquidity, and strong infrastructure and governance, contributing to the market’s ability to withstand external shocks and attract both domestic and international investors,” he said.
200 representatives from the banking and investment sector, including foreign fixed-income, equity, and private equity investors who collectively control over US$40 trillion in assets, attended the meeting.
He said the Malaysian capital market remained resilient, with total funds raised reaching a 10-year high of RM179.4 billion in 2022 despite difficult global difficulties, sending a clear message to the foreign fund managers.
He pointed out that Malaysia’s initiatives to increase market vibrancy were consistent with the goals of the country’s MADANI Economy Framework and New Industrial Master Plan.
In order to improve investor access and market vibrancy, a number of capital market measures have been announced.
These include the elimination of stamp tax, the automatic promotion of qualified public listed businesses from the ACE to the Main Market of Bursa Malaysia, the ability for investors to trade fractional shares through stockbrokers, and the establishment of the Foreign Exempt Scheme framework.
He added that initiatives were also being taken to broaden the definition of sophisticated investors to include angel investors, facilitate and promote the establishment of family offices in Malaysia, and lower the board lot size for share trading on Bursa Malaysia.
Awang noted that in order to maintain Malaysia’s competitiveness and appeal, the Securities Commission is trying to speed up the initial public offering (IPO) process and shorten the time to market. Malaysia will also make it easier for businesses to list on Bursa Malaysia and attract more investors.
He added that the SC anticipates 35 to 40 new IPOs this year and that the Malaysian IPO pipeline is still strong.
“Malaysia has a strong value proposition for foreign companies, with a solid infrastructure and talent base,” he further stated.
