The MOU was signed by Mr. Paul K. Melly, Chief Executive of the Capital Markets Authority of Kenya and Dato' Dr. Mohd. Munir Abdul Majid, Chairman of the Securities Commission of Malaysia.

Dato' Munir said that the MOU signed by the two regulators is a significant by-product of South-South cooperation not only in the sharing of knowledge and information, but also in providing technical assistance to each other.

"Many nations, particularly amongst the South countries, are at different stages of development and have different and various sets of requirements. Therefore there is an undeniably real and urgent need for the framework of South-South cooperation to operate in a more concrete manner, " he said.

Mr. Melly said Kenya stands to benefit from the MOU by drawing on the expertise of Malaysia on various issues relating to capital market development as Malaysia is one of the most promising emerging economies in East Asia.

"The Capital Markets Authority of Kenya will draw on the experience of SC on a wide range of developmental issues especially in the areas of nurturing the emergence of new market institutions and new products, as well as in enhancing the mobilisation of long term capital for investment," said Mr. Melly.

Dato' Munir added that both organisations are already actively involved in the global efforts of harmonising regulation in the securities markets, through their membership of the International Organisation of Securities Commissions (IOSCO).

"I would like to think that our membership of the IOSCO Executive Committee, by virtue of our respective chairmanships of the Emerging Markets Committee and the African and Middle-East Regional Committee, has somewhat contributed to the furtherance and promotion of the interests of the developing world and the development of South-South cooperation in the international arena," said Dato' Munir.

The MOU provides for the establishment of a framework for mutual assistance, exchange of information and mutual investigative assistance, to the extent permitted by the laws of the respective countries, for the purpose of investor protection and further promotion of the integrity of both the Kenyan and Malaysian securities markets.

In addition, the MOU also provides for cooperation in the area of training, manpower development and technical assistance to further promote market expertise in both countries - the first time such a clause has been incorporated in an MOU entered into by SC.

In furtherance of these objectives, the two regulators will endeavour to provide each other, wherever and whenever possible, the necessary assistance to facilitate the effective administration and enforcement of their respective laws, regulations, rules, guidelines, procedures and practices relating to their respective securities industry.

Dato' Munir said that the increasing internationalisation of securities markets has created challenges for domestic enforcement agencies.

"In anticipation of the cross-border needs of the investors of our two countries, as regulators, SC and Capital Markets Authority of Kenya, must work together to ensure that there are adequate protections for these investments which will certainly take place." he said.

SC has signed MOUs with its counterparts in Indonesia, Hong Kong, Thailand, and China.