In his speech, he told the fund managers that a string of positive recommendations have come out in the first quarter of 1999. Many have noted and now strongly approved of Malaysia's restructuring efforts. The market has also begun to price Malaysia's sovereign risk more favourably. Most recently, Malaysia's credit rate has been upgraded, Encik Ali noted.
Encik Ali stated that Malaysia's capital market measures were introduced to achieve the following objectives:
- Maintain systemic stability
- Strengthen market intermediaries
- Rehabilitate the securities industry
- Improve market transparency and corporate governance
In particular, the SC Chairman highlighted the recent corporate governance report, enhanced rules on related party transactions, and the introduction of the new Take-Over Code as some of the specific measures that were designed to improve corporate governance practice and investor protection regulation. The SC chairman also reiterated the Commission's efforts on enhancing prudential standards and on pursuing rigorous enforcement of breaches in securities laws.
On Thursday, 8 April, the SC chairman also spoke at a high-level round table on 'Securities Market Reforms in the Face of the Asian Financial Crisis' in Tokyo that was organised jointly by the Asian Development Bank Institute and the Organisation for Economic Co-operation and Development. The SC chairman was one of the selected heads of capital market agencies who was invited to speak at the capital market roundtable on Malaysia's experience in this area. At the roundtable, Encik Ali explained the measures that Malaysia has introduced and the effect that these measures have had on the economy and the financial market.
