Inve$t | Market Sentiments | 17 November 2022
Bursa Malaysia Berhad and the Companies Commission of Malaysia (SSM) today signed a Memorandum of Understanding to undertake a 3-year collaboration with three core initiatives to benefit SME in the Malaysia economy. The framework of the MoU includes:
- to jointly explore commercial opportunities for both Bursa Malaysia and SSM that support corporate Malaysia’s digital economy growth aspiration, as guided by the Malaysia Digital Economy Blueprint;
- Data-sharing between Bursa Malaysia and SSM for in-depth analytics that provide greater strategic decision-making insights for businesses as encouraged by the National Data Sharing Policy; and
- Driving the Environmental, Social and Governance agenda for Malaysian business ecosystem with impactful programmes.
The new collaboration will be to leverage the combined potential of Bursa Malaysia’s and SSM’s datasets to build a first-of-its-kind data ecosystem that supports Malaysia’s socio-economic development agenda. The platform, comprising datasets of corporate Malaysia from both small-medium enterprises and public listed companies, will facilitate the development of in-depth meaningful analytics and solutions for the fund-raising community in the capital market, as well as the business community at large.
Driving the ESG agenda, Bursa Malaysia and SSM will work together to encourage corporate Malaysia to focus on improving disclosures and access to capital through ESG best practices in respective industries. Public listed companies, from financial institutions to manufacturing businesses, can act as catalysts of the Malaysia’s economy to improve data and transparency in their supply chain.
According to Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, the MoU between Bursa Malaysia and SSM today provides the Exchange a trusted partner both in terms of improving our combined data capacity, as well as the opportunity in empowering the local business community through data and information sharing. In addition to building a centralised data system that connects businesses with the funding agencies, this collaboration will allow smaller businesses to learn from best practises from larger corporations.
Meanwhile Datuk Nor Azimah Abdul Aziz, SSM Chief Executive Officer, said that SSM has a comprehensive data bank consisting of details on information relating to company and other business entities’ profiles, share capital, directors, officers, shareholders, charges and financial information. Through this MoU, information derived from this meaningful collaboration would be further analysed to create a holistic, inclusive, and conducive data ecosystem that supports the overall Malaysia’s socio-economic development agenda, especially the SMEs that comprised 99% of the corporate and business entities in SSM’s registries.
Malaysia IPO market still strong – Deloitte
According to Deloitte, Malaysia’s initial public offering (IPO) market has emerged from the Covid-19 pandemic with a 102% increase in the proceeds raised at US$681mil (RM3.12bil) compared to 2021, driven by investor demand for good business fundamental companies. The global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and legal company also said that the number of ACE Market listings had doubled from 11 in 2021 to 22 this year. It said the interest rate hike would potentially encourage more companies with good business fundamentals to seek a listing, as they can leverage the equity market for a diversified and cheaper funding base.
According to Deloitte Malaysia disruptive events advisory leader Wong Kar Choon, at the Deloitte virtual press conference titled 2022 SEA IPO Market Performance and Outlook, there remained a steady pipeline of companies looking to tap the capital markets. He added, the strong performance in 2022, against a backdrop of global inflation, rising interest rates and the threat of a recession, is proof of the resilience of the Malaysian capital market.
Meanwhile Deloitte South-East Asia and Singapore disruptive events advisory leader Tay Hwee Ling said that prior to the Covid-19 pandemic, the IPO activity moved in tandem with the economy and gross domestic product growth, but the inverse had happened in the last two years. The reopening of the world economies and borders have fuelled a rise in global inflation from 4.7% in 2021 to 8.8% in 2022, and consequently an increase in the Federal Reserve interest rate of almost 4% over the course of the year in a bid to tame the surging inflation. In the face of these macroeconomic factors, the South-East Asia IPO market has held up considerably well, while we continue to see the growth potential in our economies.
Eye On The Markets
This week, on Thursday (17Nov), the Ringgit opened at 4.5470 against the USD from 4.6195 on Monday (14Nov). Meanwhile, the Ringgit was 3.3181 to the Sing Dollar on Thursday (17Nov). On Monday (14Nov), the FBM KLCI opened at 1447.40. As at Thursday (17Nov) 10:00am, the FBM KLCI is down 21.59 points for the week at 1468.99. Over in US, the overnight Dow Jones Industrial Average closed down 39.09 points (-0.12%) to 33,553.83 whilst the NASDAQ shed 174.75 points (-1.54%) to 11,183.66.
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