Presentation of Securities Commission Capital Market Award
16 October 1995 |   By : Dato' Dr. Mohd. Munir Abdul Majid, Chairman, Securities Commission, Malaysia

First and foremost, I would like to thank Yang Berhormat Dato' Seri Mohd Najib Tun Abdul Razak, Minister of Education, the representatives from both the government and private agencies, corporate bodies, research and educational institutions, professional bodies, exchanges, fellow academicians as well as participants who are here with us today to witness this year's inaugural presentation of the Securities Commission Capital Market Award.

Upon its establishment in 1993, SC was given two main roles. Firstly, as the single regulatory agency to streamline the regulations of the securities markets and speed up all processing and transactions involved. Secondly, as the body responsible for facilitating the development of the capital markets through disseminating information and training the market players and the public at large. It is thus SC's mission to promote and maintain fair, efficient, secure and transparent securities and futures markets and to facilitate the orderly development of an innovative and competitive capital market.

The experience gained for more than two years since its inception has enabled SC to implement policies to further improve and develop the local capital market in line with the country's objective to achieve strong and stable economic development by the turn of year 2020. Without cooperation from all sectors, corporate bodies, professionals and the labour force, it would be difficult for Malaysia to achieve the developed country status, as envisioned by our Prime Minister, Dato' Seri Dr Mahathir Mohamad. The importance of guiding and educating the younger generation including students is an important facet in this vision as they will be the future leaders of the country.

In line with the government's objective to build a strong intellectual and innovative nation, SC has given due emphasis to educating the public on the capital markets. The establishment of the Securities Industry Development Centre (SIDC) on 1 July 1994 is SC's commitment to achieve this goal. SIDC's principal objectives is to promote the development of a sound, stable and sophisticated capital market through the dissemination of non-proprietary research. Its training programmes have been able to attract participants ranging from retail investors, directors of companies, both local and foreign market intermediaries as well as regulators from the Asia Pacific region.

One of SIDC's efforts is to disseminate research and promote awareness among the public with respect to the capital market. The capital market is indeed very extensive, comprehensive and complicated for it to be understood by laymen who are not directly involved in this area. Nevertheless, the SC realises the utmost importance of developing knowledge and understanding of the capital market among the public.

The SC's Business Plan 1995-1997 outlines the goals which SC hopes to achieve within the next three years. Among others, it has an objective of inculcating awareness among investors and the public through local and regional education and training programmes, which is essential to the development of an innovative and professional securities and derivatives industry. Industry training can be categorised into conferences, workshops and colloquia, the supervision of the content and conduct of qualifying examinations for market intermediaries, the supervision of the conduct professional qualifications and also awarding post-graduate scholarships for industry-related studies.

Today, for the first time, we will witness one of SC's efforts to generate interest among the general public in the capital market and this is to be achieved through the Securities Commission Capital Market Award programme. Early this year, by announcing the awards scheme, SC had paved the way to encourage a more active and participative interest in the capital market among students in local institutions of higher learning. The programme is targeted at post-graduate students in the local universities who have produced research papers on various aspects of the capital market, such as law, finance, accounting, economics and management.

Beginning this year, the SC will give three awards to outstanding academic contributors producing research papers that enhance the better understanding of the Malaysian capital markets. The winner is determined by two selection panels that evaluate the papers according to predetermined criteria. The research paper is reviewed by a university panel. Each university submits one paper to the SC selection panel. At the university level, the SC recommends that the panel consist of one representative from the candidate's faculty; one from the university's senate; and a practitioner from the securities industry. The panel at the SC's level comprises of the Chairman and two members of the Commission. The decision on the winning paper is determined by the practicality of the research, in addition to the fulfilment of other criteria.

Touching on the quality of the papers, the SC wishes to see in future years even more higher standards of submissions with analyses of greater rigour. Often, the testing of hypotheses against empirical evidence does not necessarily lead to a simple conclusion and suitable caveats may have to be included. Theoretical models already established need not have to be so extensively postulated; what should be extensive is the test against the evidence. The role of supervisors in this regard is critical, and there must be involved discussions and re-positioning.

The SC would also like to see in future submissions of more robust addressals of contemporary capital market issues at this critical juncture. Issues relating to the developmental areas of the capital markets such as the unit trust industry, fund management, derivatives, stock borrowing and lending arrangements, etc. The candidates may include different approaches in their research, either economic, accounting, financial, legal or a mixture of these. The complexity of the status of our capital market requires extensive exploration from everyone including the academicians and university students.

Universities are the most appropriate bodies to undertake the dissemination of information and the inculcation of knowledge in the areas of the capital market. A two-way relationship between the universities and the industry is essential in enabling greater exposures as means of preparing students before they enter the employment sector. Training or programmes arising from this relationship is significant to develop their expertise specifically in that particular area.

Skilled and knowledgeable individuals are the country's asset to development. They not only make up for the shortage in skilled labour, but also play an important role as future leaders. The SC also plays its part in supporting the aspiration of the Malaysian government to turn the country into a leading centre of the capital market. In conjunction with the SC's permanent building which is expected to be completed by the second half of 1998, a new research centre would be built in order to develop and facilitate research work in the field of the capital market.

The new building will be equipped with sophisticated multi-media information system incorporating on-line service such as Internet which will be installed in the library to facilitate and speed up the process of obtaining facts and information by staff as well as the public. From time to time, this information network would also be of great use to the general public as well as academicians and university students at large.

It is my hope that there will be more participation from individuals and players in the Malaysian capital market, which is expected to achieve greater development in the near future.

Thank you.
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The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.

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