SC Launches Five-Year Capital Market Master Plan to Support Malaysia’s Next Growth Stage

KUALA LUMPUR (September 21): The Securities Commission Malaysia (SC) today launched the Third Capital Market Master Plan (CMP3), which will serve as a strategic framework for the growth of Malaysia’s capital market over the five coming years.

According to SC Chairman Datuk Syed Zaid Albar, Capital Market Master Plan 1 (2001-2010) and Capital Market Master Plan 2 (2011-2020) have succeeded in developing the capital market while ensuring the stability and market integrity over the past two decades.

As such, the regulator said the new master plan now seeks to harness the strengths and potential of the Malaysian capital market to accelerate sustainable and inclusive economic growth.

“Malaysia is now at a critical juncture in our post-pandemic journey. It is imperative that the capital market continues to support the economy as we move towards an inclusive and sustainable nation.

“Progress in the capital market cannot be measured by growth and size alone, as it must also meet the underlying needs and aspirations of the country and its people. »He declared on the occasion of the launch of the CMP3 which was held virtually today.

Syed Zaid noted that CMP3 takes into account the global megatrends that will shape the recovery and growth of the global and Malaysian economies, as it directs the capital market towards three desired outcomes, namely to be relevant, efficient and diverse.

“Malaysia now has a well-diversified capital market, with an equity market with over 900 listed companies, a bond market which is the third-largest in Asia, an Islamic capital market which is innovative and well regarded in the world, a derivatives market which is a leader in the discovery of crude palm oil (CPO) prices and a private equity trust industry which is one of the largest in the region, ”he said. -he declares.

In addition, Syed Zaid said that the governance strategies implemented during previous master plans have ensured strong regulatory oversight to build confidence in the integrity of Malaysia’s capital market.

“The Malaysian capital market regulatory framework is assessed and ranked among the best internationally for, among other things, investor protection standards, corporate governance and enforcement capabilities.

“CMP3 will build on this solid foundation to pave the way for the next stage in the evolution and growth of the Malaysian market,” he said.

To achieve these desired outcomes, CMP3 outlines six key development and regulatory thrusts that will collectively serve as pillars in shaping strategic initiatives over the next five years.

The first area of ​​development is to facilitate fundraising for competitive businesses through a diversified market and intermediation ecosystem. CMP3 also aims to empower all Malaysians to invest in their future and promote digital inclusion and protect vulnerable investors.

Additionally, through the pillars of Sustainable and Responsible Investment (SRI) and Islamic Capital Market (ICM), CMP3 aims to shape a stakeholder economy by mobilizing more capital towards sustainable businesses.

At the same time, the SC’s regulatory approach will also evolve in response to changing market trends and landscape, with CMP3 striving to embed greater shared responsibility within the capital market, in particular the responsibility of business to stakeholders beyond short-term profitability.

It also aims to achieve a more efficient regulatory outcome and greater efficiency in investor protection through rapid, efficient and targeted enforcement and supervisory approaches. Additionally, as the industry becomes more digital, the CMP3 envisions greater use of technology – both regulatory technology (RegTech) and surveillance technology (SupTech) – for greater efficiency and efficiency. more in-depth information.

Read more articles on the Securities Commission Capital Market Master Plan 3 (CMP3) here.
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