THE Securities Commission (SC) has rolled out the third Capital Market Masterplan (CMP3) which will serve as a strategic framework for the growth of Malaysia’s capital market over the next five years.
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:
- Relevancy to the development of the economy and its stakeholders;
- Efficient capital mobilisation and in achieving the desired regulatory outcomes; and
- Diversification to create value for all participants.
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.
In this regard, the CMP3 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 Investments (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 market landscape. The CMP3 strives 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 RegTech (regulatory technology) and SupTech (supervisory technology) – for greater efficiency and deeper insights.
“It will be our collective responsibility to bring these strategic thrusts and desired outcomes to fruition for us to achieve meaningful change. This is a shared journey for all of us to undertake. We will be stronger together,” SC chairman Datuk Syed Zaid Albar pointed out.
Over the past two decades, the Capital Market Masterplan 1 (2001-2010) and Capital Market Masterplan 2 (2011-2020) have successfully expanded Malaysia’s capital market while ensuring market stability and integrity.
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.
In addition, governance strategies implemented during the previous masterplans have 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. – Sept 21, 2021
