Capital Market Masterplan – SC launches 5 year masterplan

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According to SC chairman Datuk Syed Zaid Albar, the Securities Commission’s third Capital Market Masterplan (CMP3) will serve as a strategic framework for the growth of Malaysia’s capital market over the next five years. Both Capital Market Masterplan 1 (2001-2010) and Capital Market Masterplan 2 (2011-2020) had successfully expanded the capital market while ensuring market stability and integrity over the last two decades. As such, the new master plan now seeks to leverage the strengths and potential of the Malaysian capital market to accelerate economic growth that is sustainable and inclusive. Malaysia is now at a critical juncture in its post-pandemic journey. It is imperative for the capital market to continue to support the economy’s transition into an inclusive and sustainable nation. The progress in the capital market cannot be measured solely by growth and size as it also has to serve underlying needs and aspirations of the country and its people. The CMP3 takes into consideration global megatrends that will shape the recovery and growth of global and Malaysian economies as it steers the capital market towards three desired outcomes, namely being relevant, efficient and diversified. Malaysia now has a well-diversified capital market, with an equity market that has over 900 listed companies, a bond market that is the third largest in Asia, an Islamic capital market that is innovative and well-regarded globally, a derivatives market that leads in crude palm oil (CPO) price discovery and a unit trust industry that is one of the largest in the region. Governance strategies implemented during the previous master plans had ensured robust regulatory oversight to enhance confidence in the integrity of Malaysia’s capital market. The Malaysian capital market regulatory framework is benchmarked and ranks highly internationally with regard to, among others, investor protection standards, corporate governance and enforcement capabilities. The CMP3 will build on this solid foundation to pave the way for the next stage of Malaysia’s market evolution and growth. To achieve these desired outcomes, the CMP3 outlines six key development and regulatory thrusts that will collectively serve as pillars in developing strategic initiatives over the next five years. 

The first development thrust is facilitating fundraising for competitive businesses through a diverse market and intermediation ecosystem. The CMP3 also aims to empower all Malaysians to invest for their future and promote digital inclusion and protection for vulnerable investors. Furthermore, through the Sustainable and Responsible Investment (SRI) and Islamic Capital Market (ICM) pillars, the CMP3 aims to shape a stakeholder economy by mobilising more capital towards sustainable businesses. In tandem, the SC’s regulatory approach will also evolve in response to changing trends and the market landscape, with the CMP3 striving to embed greater shared accountability within the capital market, particularly corporate responsibility to stakeholders beyond short-term profitability. It also aims to achieve a more efficient regulatory outcome and greater efficiency in investor protection through swift, effective and targeted enforcement and supervision approaches. In addition, as the industry becomes more digital, the CMP3 envisions greater use of technology — both regulatory technology (RegTech) and supervisory technology (SupTech) — for greater efficiency and deeper insights. 

Bursa Malaysia aims to be carbon neutral by 2022 

According to Bursa Malaysia chairman Tan Sri Abdul Wahid Omar, Bursa Malaysia is targeting to become carbon neutral by 2022 and achieve net zero emissions by 2050 across its entire operations, in line with the global drive for decarbonisation. The stock exchange operator would systematically manage its carbon footprint across the exchange’s entire business activities, while reducing emissions in line with a net zero future. Bursa Malaysia will participate in global campaigns, “Business Ambition for 1.5°C” and “Race to Zero”, to support the transition to a climate resilient and inclusive economy. Climate change poses a significant threat to the planet and society. It is in everyone’s best interests to work towards a systemic change that prevents a climate catastrophe. He believes it is important for all companies regardless of size, industry and operating models to scale-up their climate contributions with firm commitments and concerted actions towards achieving a climate-resilient future. Climate change has always been a priority for Bursa Malaysia. 

Eye On The Markets 

This week, on Friday (24Sep), the Ringgit opened at 4.1770 against the USD from 4.1860 on Monday (20Sept). Meanwhile, the Ringgit was 3.0974 to the Sing Dollar on Friday (24Sep). On Monday (20Sept), the FBM KLCI opened at 1547.62. As at Friday (24Sep) 10:00am, the FBM KLCI is down 17.97 points for the week at 1529.65. Over in US, the overnight Dow Jones Industrial Average closed up 506.50 points (+1.48%) to 34,764.82 whilst the NASDAQ added 155.40 points (+1.04%) to 15,052.20.  

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