Datuk Ali who was speaking to capital market regulators from central and south-eastern Europe, the African Continent, Middle East, and Asia attending the Emerging Markets Programme at the SC today urged emerging markets to work as a group to attract international capital.

Quoting “no man is an island in emerging markets”, he said it was more likely for international investors to invest in individual emerging countries, if the emerging markets as a group or the particular region, was viewed as acceptable as an investment destination.

Senior officers from 28 capital market regulators of emerging countries are in Kuala Lumpur under the Emerging Markets Programme (EMP) from 12-18 October 2003 to discuss developments and trends in the capital markets. This year is the fourth EMP the SC has organised.

“We should work together and help each other. From the international investors perspective, we are really not competing amongst one another,” Datuk Ali said.

Datuk Ali also stressed that emerging markets must put in place international standards, best practices and have a cultural change if it were to attract international investors to the market

He said emerging markets must strive to understand what international investors are looking for, which are ethical markets practising beyond requirements of the law.

He said in order to attract international participation, emerging markets must first focus on their own domestic issues and generate growth domestically, as international investors were unlikely to move into a nascent capital market.

Datuk Ali also said that although emerging markets can learn from the experiences of developed markets, they have to find ways to resolve their particular issues because of the different set of circumstances.

The EMP is an annual programme organised by the Securities Industry Development Centre (SIDC), the training and education arm of the Securities Commission (SC). It is a forum for national regulators to share ideas and experiences on strategic issues of common interest and also serves to identify issues on market regulation and development, and discusses concerns of market integrity and investor protection.

This year’s programme themed “Strengthening Regulatory Structures” will examine strengthening institutional pillars of the capital market – effective economic strategies for emerging markets, disclosure-based regulation, regulatory reform, challenges for exchanges, risk management, combating financial crime and international cooperation.

Speakers this year include representatives from the United States Securities and Exchange Commission, Australian Securities and Investment Commission, China Securities and Regulatory Commission, Securities and Exchange Board of India, Hong Kong Securities and Futures Commission, Monetary Authority of Singapore, Securities and Exchange Commission of Thailand and the Australian Stock Exchange.

A total of 142 emerging market regulators have taken part in the programme since it first started in 2001.