Strengthening the Sustainability and Competitiveness of the Capital Market

Efficient capital formation and mobilisation continue to be important drivers in strengthening the sustainability and competitiveness of the Malaysian capital market. Aligned with these objectives, the SC undertook various developmental initiatives spanning both the alternative and traditional markets. These initiatives are specifically geared towards facilitating greater fundraising avenues, especially for MSMEs and mid-tier companies (MTCs) and strengthening the overall investment ecosystem. Key initiatives entailed forming partnerships with other government agencies, introducing innovative financial products and services, integrating new players into the market ecosystem and developing relevant talent pipeline.

In addition, the SC continued to drive the sustainability and corporate governance agenda, broaden and deepen the ICM as well as strengthen the fund management industry. The SC also strives to foster competitive markets and embrace innovation for greater growth. Globally, the SC aims to elevate the international profile of the Malaysian capital market and its regulatory framework.

Aligned with evolving market needs and digital advancements, the capital market continued to expand its role in financing business ventures, creating jobs, widening ownership of assets and generating returns on long-term savings.

The SC remains committed to chart its strategic direction to expand its reach and value proposition, aiming to propel a more inclusive and broader ICM.

The fund management sector is a pivotal contributor to the Malaysian economy, serving as a cornerstone for the efficient allocation of capital to productive resources and fostering wealth accumulation for investors.

In its efforts to foster an inclusive and competitive derivatives market, the SC has undertaken various initiatives, which include the mini-United States Dollar and Chinese Renminbi currency futures contract (FCNH) and soybean oil future contract (FSOY).

In 2023, the SC continued to introduce further measures to enhance the attractiveness of the equity capital market with the introduction of fractional share trading, a new accelerated transfer process to the Main Market and taking measures to safeguard investors’ interest in relation to offerings by the unlisted public companies (UPCs).

Technological advancements and changing consumer behaviours continue to shape the capital markets. Increasingly, consumers are demanding for more data for decision-making, personalised investing experience, and investment options, including alternative assets through digital channels.

The SC remains committed to fostering innovation and
technological advancement within the Malaysia capital
market to address increasing demand for digital and
online services.

Digital revolution has ushered in a new era marked by connectivity, convenience, and innovation. Consequently, an increasing number of capital market entities have harnessed these technologies to conduct their business.

SRI continues to be one of the key priorities for the development of the Malaysian capital market. In 2023, the SC introduced several initiatives to strengthen the development of a facilitative SRI ecosystem, including meeting the country’s transition finance needs.

The SC is undertaking a holistic review of the CMSA to ensure that the securities laws remain fit-for-purpose. The review is part of the SC’s efforts to modernise the CMSA and promote efficiencies to enable the capital market to remain competitive while maintaining adequate investor protection.

Recognising the importance of human capital growth in the capital market, the SC continues to enhance the talent pipeline in the capital market.

Apart from developing the domestic capital market, the SC continues to demonstrate its commitment to global regulatory policymaking and international standardsetting.

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