MOU between the Securities Commission (SC) and the Mara Institute of Technology (ITM) on Malaysian Futures and Options Module

Kuala Lumpur, 6 January 1997

Chairman, Securities Commission, Dato' Dr. Mohd Munir Abdul Majid and Chairman, ITM, Tan Sri Dato' Wira Abdul Rahman Haji Arshad, today signed an inaugural Memorandum of Understanding on the introduction of the Malaysian Futures and Options Module into the ITM's Bachelor of Business Administration (Honours) (Finance) Course. The signing was witnessed by Deputy Rector ITM (Academic and Student Welfare), Professor Dr. Wan Mohamad Wan Abdul Kadir and General Manager, Policy and Development Division, SC, Dr.Nik Ramlah Nik Mahmood.

When trade in financial futures started on KLOFFE, the business and management schools of many local universities found it necessary to bridge the gap between what was taught in the universities and the requirements of the Malaysian Futures and Options Registered Representative (MFORR) examination. This is to ensure that graduates are fully prepared to play an active role in the field of financial futures upon graduation if they are interested. The SC's Securities Industry Development Centre (SIDC) with the assistance of the futures exchanges, the clearing house and industry practitioners took on a number of programmes in 1996, for example the provision of training and refresher courses for university lecturers, workshops and standardization of materials to be used at universities, leading to the idea of developing a futures and options module.

The introduction of this new module, Dato' Munir said in his speech, would lay the foundation to produce graduates equipped to enter the options and futures industry.

The SC will pilot test the Malaysian Futures and Options Module with ITM for two semesters. It will be made available at other universities by the year 1998.

The programme is also part of the SIDC's effort to encourage greater Bumiputera participation in the futures and options industry. As at December 18, 1996, 306 Futures Broker Representatives (FBRs) were licensed. Only sixty or 19.6% are Bumiputeras. As for the MFORR examination, since the first examination was conducted in February 1995 to the end of October 1996, 500 candidates have passed all modules, but only 65 or 13% are Bumiputeras.

More generally, Dr. Munir stated that there was insufficient commitment to training and human resource development in the securities industry, especially of Bumiputera professionals, as revealed by an examination of 20 stockbroking companies in the Klang Valley last year. He disclosed that to tackle this problem, one of the SIDC's future plans is to set up a training fund to be administered by the SC. The SIDC will provide comprehensive training programmes covering management, communication, marketing and credit control targeted at Bumiputera dealers representatives, back office personnel and directors. The Association of Stockbroking Companies and KLSE have been informed of this plan and are fully supportive of it.


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