Digital Agenda for Capital Market
We aim to continue our efforts in facilitating innovations to better serve the needs of our economy and participants, while at the same time safeguarding investor trust and confidence. In line with this, we crafted a holistic digital agenda, designed to achieve four main objectives - enhance access to financing, increase investor participation, augment institutional market and develop synergistic ecosystems.
  • Enhancing Access to Financing
    Many Malaysian micro, small and medium enterprises MSME(s) face challenges in obtaining funding through traditional sources of funding to meet their financing needs. Despite being a vital component of the Malaysian economy, MSME(s) are traditionally underserved by the financial system.

    To address this, we focused on facilitating market-based financing avenues such as equity crowdfunding (ECF) and peer-to-peer (P2P) financing to narrow this gap, by providing an alternative source of capital for MSME(s) to fund early stages of business development, business expansion, finance working capital and meet other financial requirements.
  • Increasing Investor Participation
    It is important that we continuously identify new and innovative investment solutions to encourage the participation of the emerging “digitally-inclined” generation of investors to invest in the capital market. While most people would associate the below-30 demographic as more digitally-inclined, further research has shown that the Digital Generation is not just limited to millennials, but extends across age demographics. Inspired by the digital user experience they encounter in their daily lives, these investors are demanding similar level of experience from their financial services providers - preferring to interact with technology for their investment needs.

    In response to the emerging pool of digital-savvy investors, the SC is also facilitating the provision of digital-only capital market services, including robo-advisory, which offers investing convenience, better accessibility and transparency at a relatively affordable cost.

    The SC is of the view that the digital investment space is clearly an area where intervention and facilitation by regulators could help the industry to develop new, more cost-effective and transparent ways of delivering investment services to consumers. Such services would complement the existing suite of investment channels to enable more consumers, particularly those who have been underserved, to access these services at a relatively affordable cost.
  • Augmenting the Institutional Market
    By leveraging digital, greater transparency of information can be achieved within the capital market. With greater transparency, our market would become more efficient and be able to attract greater investor participation.

    For example information relating to our secondary bond and sukuk market, used to be highly fragmented among different sources and not easily accessible. While information on a new issuance was generally readily available to all potential investors via offering circulars, nevertheless there was less transparency of bond and sukuk data post-issuance, especially in areas of credit risk and pricing. These data, was only accessible to large institutional investors and seldom, if at all, available to the smaller investors. As part of our efforts to introduce greater transparency and spur further growth in these markets, the SC established the Bond + Sukuk Information Exchange Malaysia (BIX Malaysia) in 2017. BIX Malaysia is a centralised online information platform, to enable investors to obtain necessary information on ringgit bonds and sukuk to assist in their investment decisions.

    Digitising the brokerage industry is key towards enhancing broker’s growth, expanding reach to new and younger investors as well as improving customer experience. The Brokerage Industry Digitisation Group (BRIDGe), comprising representatives from the SC, BNM, Bursa Malaysia and industry panels including banks, payment service providers, brokers as well as share registrars was established in August 2018. Together, BRIDGe serves to accelerate the digitisation of the country’s stockbroking business.
  • Developing Synergistic Ecosystems
    Notwithstanding digitalisation of intermediaries, financial services institution (FSIs), start-ups and exchanges, there is still a need to develop the surrounding ecosystem service providers. These service providers include custodians and trustees, rating agencies and information vendors and brokers. `Digitising’ these ecosystem players will allow faster, and more seamless access to these services, thereby creating a more transparent and efficient market. We are working closely with our capital market ecosystem service providers to build market-relevant digital services and offerings to meet the needs of the ecosystem. 
Prospective clients go online to define their:
  • Financial characteristics
  • Risk profile
  • Financial goals
by answering a series of questions in an online questionnaire.
Based on the risk profile, a proprietary algorithm is run to define the best suited, personalized investment portfolio to minimize risk and maximize performance.
The resulting  investment recommendation is displayed online for future clients to visualise the potential gains and losses of the proposal, as well as a more or less detailed composition of the proposed portfolio with exposure levels and target underlying securities.
The empowered investor can accept and proceed with an online transfer/account opening.
The algorithm will provide discretionary management services steered by the risk profile and investment allocation.
Customers will be able to track their  investment performance anytime anywhere on their mobile.
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HOTLINE: +603-6204 8000
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