Page 8 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

products and expansion of trading order types. Fostering innovation and
Close monitoring of listed company activities and competitiveness
financial reporting remained an important
component of corporate surveillance work, which Access to financing is an important catalyst for
aimed to deter potential transgressions and ensure private enterprise, which is critical for Malaysia’s
compliance with approved accounting standards. As long-term growth. Recognising this, the SC will
part of the SC’s systemic risk oversight mandate, we continue to expand pathways for market-based
assessed systemic implications of various drivers of financing by facilitating fundraising by larger
risk including global monetary policy decisions, existing firms while enhancing access to capital
escalating trade tension and geopolitical from both traditional and alternative avenues for
developments. To strengthen market integrity high-growth and innovative MSMEs.
against emerging threats, we conducted a cyber
simulation and enhanced cyber risk management Supply of capital, particularly to alternative financing
within the industry. avenues, will be augmented by efforts to grow
Malaysia’s venture capital and private equity
Where breaches were identified, the SC deployed a industry. To this end, our efforts will focus on
range of enforcement tools under its administrative, diversifying sources of funding beyond government-
civil and criminal powers. As a result, 80 backed funds while also encouraging investments
administrative sanctions were imposed, 14 criminal at different stages of investee companies’ life cycle.
charges preferred, and over RM30 million in
disgorgements and fines issued. Custodial To facilitate equity fundraising, the SC will
sentences on six individuals also reflected increasing collaborate with intermediaries to infuse greater
judicial recognition on the gravity of securities market perspectives into the IPO process and
offences. improve time-to-market for proposals that comply
with requisite investor protection criteria. We will
continue to place accountability on intermediaries,
PRIORITIES FOR 2019 issuers and professionals for high standards of
disclosure, professionalism and governance.
As a dual-mandate regulator, the SC’s greatest
challenge remains its ability to strike a balance To enhance market vibrancy, the SC will also
between facilitating growth while safeguarding support changes in the trading landscape by
stakeholders and upholding discipline – particularly allowing for varied trading strategies, including
in the face of heightened competition and continual greater use of derivatives. Building on our efforts to
financial innovation. facilitate digitisation while ensuring relevant
safeguards for investors and the market at large,
Moving forward, the SC remains committed to a the SC will also introduce a framework to facilitate
proportionate and facilitative regulatory approach the trading of digital assets in Malaysia.
– one which fosters innovation and competitiveness
within a sensible and proactive oversight regime. In relation to intermediaries, the SC remains
This will be reinforced by efforts to galvanise the supportive of new business models and efforts to
entire capital market ecosystem, including issuers, reposition existing firms. Building on ongoing
intermediaries and investors, into playing their liberalisation efforts, the SC will review its
respective roles to uphold market discipline. authorisation and licensing framework to enable
Supporting this will be greater openness and greater flexibility and responsiveness in recognising
collaboration between the SC and industry, as well innovative intermediation models. Where appropriate,
as other stakeholders in the Malaysian economy. we will encourage greater competition to allow for
a wider range of services, prices, products of a higher
quality and ultimately, an expanded investor base.

vi | CHAIRMAN’S MESSAGE

NEW_iv-ix.indd 6 2/21/19 9:32 AM