Strengthening the Sustainability and Competitiveness of the Capital Market

The efficient mobilisation of capital is crucial for enhancing the sustainability and competitiveness of the Malaysian capital market. Towards this end, the SC continues to improve market inclusivity and accessibility and enable more diverse investment options for investors spanning across both traditional and alternative markets. Efforts are mainly focused on the augmentation of investment landscape and products, broadening of the derivative markets, expansion of players and products in the digital asset space and empowering purpose-driven innovation towards a dynamic market in this digital era. In addition to reinforcing the current ecosystem, fundraising opportunities continue to be enhanced particularly for MSMEs and mid-tier companies (MTCs).

Simultaneously, the SC remains committed in ensuring sustainability, good governance and strong social impact among its market growth initiatives. Continuous efforts are being made in driving the sustainability and corporate governance agenda.

Arising from the global need for harmonised sustainability reporting, the SC has facilitated the development and implementation of the National Sustainability Reporting Framework (NSRF) to elevate the availability of consistent, comparable and reliable sustainability information to enhance Malaysia’s competitiveness and attractiveness to investors. From various engagements with key stakeholders, the SC has worked towards enhancing the clarity of sustainable and responsible investment (SRI) through the development of the SRI Taxonomy Plus-Standards. From a social finance ecosystem, the SC will be spearheading the launch of the Social Exchange, an innovative fundraising platform aimed at driving impactful social change by facilitating the flow of private and philanthropic capital into projects that deliver positive social outcomes.

In order to drive these initiatives, while meeting evolving market demands and anticipating future challenges, the SC advocates for a proactive approach to nurture necessary talent towards the development of a suitably skilled talent pipeline. The SC remains dedicated to fostering competitive markets and encouraging innovation for further growth, that are both sustainable and impactful, with the aim to raise the international standing of the Malaysian capital market and its regulatory framework on a global scale.

Aligned with evolving market needs and digital advancements, and in addition to spurring sustainable growth, the capital market continued to expand its role in financing business ventures, creating jobs and driving impactful social change. 

In tandem with the objective of the Ekonomi MADANI Framework (Ekonomi MADANI) to promote greater economic growth, inclusion and sustainability, ECF and P2P financing continue to play a vital role in supporting the financing needs of businesses in Malaysia by providing enhanced access to alternative financing.

On 28 May 2024, Prime Minister Dato’ Seri Anwar Ibrahim officially announced the establishment of Malaysia’s first Social Exchange at the GFIEF.

The SC remains focused on enhancing investment avenues and fostering a dynamic ecosystem that supports wealth accumulation and the innovation economy.

In its efforts to continue to enhance opportunities within the derivatives market towards fostering growth and a more diverse, resilient trading environment, the SC has made key amendments to the Guidelines on Contracts for Difference (CFD Guidelines) and granted approvalin- principal for the relaunch of the Single Stock Futures (SSF) contract.

Technological advancements, global trends and consumers’ growing familiarity with alternative assets in the digital ecosystem continue to evolve the structure of capital markets.

Over the decade, the SC has championed various initiatives and frameworks in promoting responsible investment and enhancing environmental, social and governance practices to encourage sustainable finance.

The recent developments in corporate governance in Malaysia reflect a strong commitment to enhancing transparency, accountability, and sustainability among PLCs and MSMEs.

The SC advocates for a proactive approach to nurturing talent that not only meets current demands but also anticipates future challenges in the capital markets.

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