17th August, 2012
PUTRAJAYA: Second Finance Minister, Datuk Seri Ahmad Husni Hanadzlah yesterday said five working groups will be established to assist the Capital Market Task Force (CMTF) to make recommendations to improve the efficiency and competitiveness of Malaysia’s capital market.
Speaking during the first CMTF meeting here, he said the aim of the working groups sessions is to identify key issues from relevant stakeholders as well as to determine the nature and scope of recommendations necessary to achieve the objectives of the CMTF.
“The working groups will comprise representatives from regulatory agencies, market players, commercial banks and financial institutions, associations of remisiers, fund managers, analysts, government-linked investment companies and legal firms,” he said.
Ahmad Husni said each working group would discuss different topics that make Malaysia a listing destination of choice for domestic companies; enhancing liquidity; raising the country’s profile; simplifying the listing process without compromising investor protection and credibility of oversight; as well as Shariah compliance, and the brainstorming sessions shall be held from August to September this year.
The output and recommendations from these groups would form the basis of recommendations to improve the efficiency and competitiveness of Malaysia’s capital market, and the final report with recommendations and implementation plans shall be ready by the second quarter of next year, he said.
CMTF, chaired by Ahmad Husni, was one of five initiatives announced by Prime Minister Datuk Seri Najib Tun Razak at Invest Malaysia 2012 last May, and it is focused on market competitiveness and aimed to eliminate friction to ensure that issuers, intermediaries and investors have access to an efficient, effective and facilitative market place through streamlined regulatory and market management processes.
The capital market plays a far bigger role in the economy than before, for more people and businesses use the capital market to invest their savings and raise funds, he said.
He added liberalisation has brought more financing and investment options and has promoted more cross border flows, making the capital market a more efficient source of capital for economic development and globally connected.
“We have shown our strengths, whereby Malaysia is the leading IPO (initial public offering) venue in Asia this year, with Felda and IHH Healthcare listings attracting high interest from investors, both retail and institutional, as well as being the third largest bond market in Asia as a percentage of GDP (gross domestic product).
“Malaysia also recorded a strong double-digit growth in investment management industry, driven by unit trust growth, and we have a comprehensive Shariah regulatory framework and a major centre for innovation and intermediation of Shariah-compliant products,” he said.