Internal Engagements to Drive Value

Business Planning – Townhall and Staff Engagements

Building on the three-year Business Plan 2023-2025, the SC convened its townhall on 17 April 2025 to brief staff on key enterprise developments and priorities for the final year of the plan. The SC Management provided an overview of progress achieved over the past two years, reaffirming strong delivery on transformational initiatives and highlighting the focus areas required for the successful completion of Business Plan 2025. The session also outlined the Corporate Scorecard for 2025, which continues to emphasise outcome-based performance and alignment with the SC’s strategic objectives.

The townhall served as a platform to communicate the SC’s regulatory and developmental priorities for the year, including major institutional initiatives such as Malaysia’s ASEAN Chairmanship, preparations for the FATF Mutual Evaluation, and the rollout of the SFO framework. These initiatives were presented within the broader context of strengthening Malaysia’s capital market, advancing sustainability and supporting national economic aspirations. Staff were also updated on cross-organisational programmes aimed at enhancing operational resilience and sustaining momentum from the earlier years of the Business Plan.

Complementing the townhall, subsequent staff engagements throughout the year supported effective implementation of the Business Plan and Corporate Scorecard. These sessions reinforced organisational alignment, deepened understanding of strategic priorities and strengthened the SC’s performance culture. Together, the townhall and related engagements continued to foster transparency, shared purpose and collaboration across the organisation, ensuring the SC remains well-positioned for the next strategic planning cycle.

Mitigating Systemic Risks And Promoting Financial Stability

Enhanced Risk Governance Framework

In 2021, the SC-wide risk governance framework was enhanced as part of an overall initiative to have an effective integrated and predictive risk surveillance to maintain regulatory agility.

The structured risk governance framework integrated the wider spectrum of risks such as technology, cyber and conduct risk at the SC’s Systemic Risk Oversight Committee (SROC) and Accounting, Market and Corporate Surveillance Committee (ACMS).

Intensified surveillance

The SC continued to intensify its surveillance of systemic risk to maintain market resilience and stability. Regular SROC engagements were held to deliberate concerns emanating from various segments across the capital market. Domestic equity and bond market, foreign fund flows and trade participation continued to be monitored closely for potential stress points.

In addition, measures and economic stimulus packages introduced by the government to weather the impact of COVID-19, market trading conduct and the financial position of listed companies were among the focus areas for discussion.

Thematic assessments

The SC also conducted thematic assessments covering investors’ fund flows, the position of firms, and policy decisions to ascertain the possible impact on the capital market. In 2021, the SC reviewed and enhanced its crisis indicators on potential emerging risks in the
capital market.

The enhanced crisis indicators provided a reference point for escalation to SROC when the identified indicators and triggers materialised and ensured prompt response to manage and prevent any issues of concern that might lead to a systemic crisis.

Joint regulatory discussions

In 2021, the SC conducted frequent joint regulatory discussions with other authorities such as Bank Negara Malaysia (BNM) and Labuan Financial Services Authority (Labuan FSA) to identify systemic risk concern areas within the financial and capital markets in Malaysia.

Monitoring of various components of the capital market

The SC continued its efforts to undertake a methodological and integrated approach to ensure any potential systemic risk was being monitored, mitigated, or managed. Figure 1 highlights the findings from the following risk assessments on the various components of the capital market.