KUALA LUMPUR, March 28 (NNN-Bernama) — Malaysia’s capital market expanded 3.0 per cent to RM3.5 trillion (RM1 = US$0.238) last year on the back of a robust capital market regulatory infrastructure, diversified market ecosystem and market participants’ strong capitalisation levels and is expected to improve further in 2022, the Securities Commission Malaysia (SC) said.
Total funds raised in the capital market remained robust, rising to RM130.9 billion in 2021 (2020: RM114.6 billion), above the five-year pre-pandemic average of RM121.4 billion, of which RM16.6 billion was raised via the equity market, while RM114.3 billion was raised through the corporate bond market.
It said the capital market will remain resilient, orderly, and supportive of the economy, underpinned by strong macroeconomic fundamentals, ample domestic liquidity, and resilient capital market infrastructure despite the projected uneven domestic and global economy recovery.
“It will continue to be influenced by key global developments, with volatility likely to be driven by evolving geopolitical tensions, as well as the timing and pace of global monetary policy normalisation,” the SC said in its Annual Report 2021 released Monday.
SC chairman Syed Zaid Albar said that it will remain vigilant in navigating the year ahead as there remain several challenges which can potentially exacerbate market volatility and affect sentiment.
He said prospects for a better year for the Malaysian capital market are predicated on sustained domestic economic recovery, with the implementation of the Capital Market Masterplan 3 (CMP3) initiatives providing further impetus to market activities.
“Technology will continue to be a key driver for market growth and development. Internally, the SC’s technology roadmap will accelerate the adoption of machine learning capabilities and supervisory technology (SupTech) to enhance the effectiveness of our regulatory functions.
“However, as online tools and regulatory technology (RegTech) solutions gain acceptance within the industry, it is important to take cognisance of risks arising from the use of technology and cyber threats,” he said.
He said the capital market continued to play its critical roles in financing the economy and intermediating savings with notable increase in fundraising activities and encouraging growth of the overall fund management industry.
— NNN-BERNAMA