SC Annual Report 2021
To promote and maintain fair, efficient, secure and transparent securities and derivatives markets and to facilitate the orderly development of an innovative and competitive capital market.
Prospects of a better year for the Malaysian capital market are predicated on sustained domestic economic recovery. The implementation of CMP3 initiatives will also provide further impetus to market activities. The SC will remain vigilant in navigating the year ahead as there remain several challenges which can potentially exacerbate market volatility and affect sentiment.
highlights 2021
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RM905.5
billion
RM519.5
billion
RM4.8
billion
RM39.3
billion
Media Release
28 March 2022
The Malaysian capital market continued to play a key role in financing the economy and intermediating savings, recording a notable increase in fundraising activities and encouraging growth of the overall assets under management in 2021.
Presentation Slides
28 March 2022
This presentation slide was shared during the virtual media conference and provides an overview of the current market situation as well as the SC's priorities for 2022.
Capital Market Masterplan 3 to Support Malaysia’s Next Stage Of Growth
Relevant
Efficient
Efficient in capital mobilisation, accompanied by evolved regulatory approach.
Diversified
Capital Market Review and Outlook
The global economy entered into a recovery phase in 2021, but with widening unevenness across countries and the continued challenge of COVID-19. Domestically, the Malaysian economy remained resilient and continued to recover from the year before, although at a slower pace than initially anticipated.
Against this economic environment, alongside intermittent global financial market volatility, the Malaysian capital market was adversely affected, with domestic equity and bond markets registering subdued performances for the year. Nevertheless, the domestic capital market remained orderly, and importantly, continued to play its critical roles in financing economic activity and intermediating savings with notable improvement in fundraising activities across all market segments.
Going forward, the Malaysian economy is projected to remain on a recovery path in 2022, in tandem with the ongoing recovery in global demand. Although the domestic capital market will continue to be influenced by key global developments, it is expected to remain resilient and orderly, underpinned by Malaysia’s strong macroeconomic fundamentals, ample domestic liquidity, and supportive policy environment.
Maintaining Market Integrity and Protecting Investors
Market integrity is pivotal in reinforcing proper standards of market conduct and driving market stability. In 2021, the SC continued to focus its regulatory efforts in ensuring that the market remained agile, resilient and responsive on the back of the COVID-19 pandemic. The SC continued to closely monitor emerging systemic risks and implemented various regulatory initiatives that aimed at protecting investors’ and stakeholders’ interests.
In order to uphold high standards of governance among market participants and ensure orderly functioning of the capital market, the SC’s supervisory approach and focus over intermediaries, institutions and markets were also strengthened, supported by enforcement actions for serious breach of securities laws.
Expanding Breadth, Innovation and Competitiveness of Market
Broadening capital market access continues to be an important driver in expanding the breadth, innovation and competitiveness of the Malaysian capital market. At the same time, effective capital market access requires alignment with development within the larger stakeholder economy and the creation of an ecosystem that would drive business sustainability across all segments of the Malaysian capital market.
In this context, the SC carried out developmental efforts to ensure that the market would continue on the path of sustainable economic recovery and growth within an inclusive stakeholder environment.
Statements, Statistics and Activities
The Securities Commission Malaysia (SC) is a statutory body established under the Securities Commission Malaysia Act 1993 (SCMA) to regulate and develop the Malaysian capital market. The SC’s mission is to promote and maintain fair, efficient, and transparent securities and derivatives markets and to facilitate the orderly development of an innovative and competitive capital market.
It is committed to ensure investor protection, fair and orderly markets, and monitor, mitigate and manage systemic risks arising from the capital market. The SC’s responsibilities, powers, and authorities are clearly defined and transparently set out in securities laws, namely the SCMA, CMSA, and Securities Industry (Central Depositories) Act 1991 (SICDA).
