Kuala Lumpur, 12 April 2011
CMP2 BUILDS ON SOLID FOUNDATIONS
The achievements of the Malaysian capital market reflect the substantial progress made in the implementation of the Securities Commission Malaysia’s first Capital Market Masterplan (CMP1), which has provided a sound foundation from which to move forward with CMP2. Over its ten-year period, 95% of the 152 recommendations contained in CMP1 have been implemented, building a diversified market with strong intermediaries operating in a well-regulated environment.
The Malaysian capital market has evolved from a narrow base, comprising an equity and government securities market, to become broad-based with several market segments evolving to become leading markets in the region. The size of Malaysia’s capital market has now grown to RM2 trillion; about 2.7 times nominal GDP.
Within ASEAN, the Malaysian stockmarket has the largest number of public listed companies (PLCs) and the largest domestic unit trust industry. Malaysia’s bond market is ranked third in Asia (benchmarked against GDP) and the Islamic capital market (ICM) is considered to be among the most comprehensive worldwide.
Malaysia’s derivatives market, anchored by its strength as the global price discovery centre for crude palm oil (CPO), saw the notional value of derivatives traded annually grow by 10.8% and the investment management industry also witnessed high double-digit growth over the past ten years, largely driven by the unit trust industry.
Malaysia’s capital market is also recognised by international regulators as having a regulatory framework that is benchmarked to global standards and international best practices. The Malaysian regulatory framework has fostered high levels of investor confidence and facilitated rapid industry expansion as well as proven to be resilient to the contagion risks during the global financial crisis of 2007-2008.
SECURITIES COMMISSION MALAYSIA