Securities Commission (SC) Chairman Ali Abdul Kadir stated this at a meeting with Japanese fund managers during a three-day official visit to Tokyo, Japan.
"A string of positive recommendations have come out in the first quarter of 1999. Many have noted and now strongly approve of Malaysia's restructuring efforts. The market has begun to price Malaysia's sovereign risk more favourably. Most recently, Malaysia's credit rate has been upgraded," said Encik Ali.
In his presentation Regaining Investor Confidence in Malaysia: Recent Capital Market Efforts, SC Chairman highlighted that Malaysia's capital market measures were introduced to achieve the following objectives:
- Maintain systemic stability;
- Strengthen market intermediaries;
- Rehabilitate the securities industry; and
- Improve market transparency and corporate governance.
The corporate governance report recently released by the government's high-level Finance Committee on Corporate Governance, enhanced rules on related party transactions, and the introduction of the new Take-Overs and Mergers Code are some of the specific measures that were designed to improve corporate governance practice and investor protection regulation.
The SC Chairman also reiterated the SC's efforts on enhancing prudential standards and on pursuing rigorous enforcement of breaches in securities laws.
The meeting with Japanese fund managers was organised by the Japanese Ministry of Finance, the Tokyo Stock Exchange and the Japan Dealers Association.
The SC Chairman also spoke at a high-level round table on Securities Market Reforms in the Face of the Asian Financial Crisis organised jointly by Asian Development Bank Institute and the Organisation of Economic Cooperation and Development (OECD). Encik Ali 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, SC Chairman explained the measures that Malaysia has introduced and the effect that these measures have had on the economy and the financial market.
