Capital Markets
From The Report: Malaysia 2016
View in Online Reader

Amidst a mixed earnings performance around the world in 2015, Malaysia’s capital market posted modest growth over the course of the year. The sector grew by 2.1% in 2015, according to the Securities Commission Malaysia, the capital market regulator, to reach RM2.82trn ($698bn) by the end of the year, which was 2.5 times the size of the economy. Bursa Malaysia, the nation’s stock exchange, accounted for roughly 60% of this total, with a year-end market capitalisation of RM1.7trn ($420.8bn), while outstanding debt issuances made up the remaining RM1.12trn ($277.2bn). This follows on from half a decade of steady growth in the total value of Malaysia’s capital market. In recent years the country has emerged as a substantial player in a number of areas including fund management, sharia-compliant finance and debt issuance. This chapter contains interviews with Foo Su Yin, CEO, RAM Ratings; and Shahril Ridzuan, CEO, Employees Provident Fund.

Articles from this Chapter

Overview

Strong prospects: Markets expand in many areas, despite global and regional uncertainties
OBG
plus

Amidst a mixed earnings performance around the world in 2015, Malaysia’s capital market posted modest growth over the course of the year. The sector grew by 2.1% in 2015, according to data compiled by the Securities Commission Malaysia (SCM), the capital market sector regulator, to reach RM2.82trn ($698bn) by the end of the year, which was 2.5 times the size of the economy. Bursa Malaysia (BM), the nation’s stock exchange, accounted for roughly 60% of this total, with a year-end market capitalization…

Interview

Risk and rebalancing: OBG talks to Foo Su Yin, CEO, RAM Ratings
OBG
plus

Interview: Foo Su Yin What was the argument behind the reaffirmation of Malaysia’s global and ASEAN-scale sovereign ratings at “gA2” and “seaAAA”? FOO SU YIN: Malaysia’s sovereign ratings reflect its economic resilience, which is underscored by a diversified industrial structure and export composition as well as a robust banking system. This is evident in its growth of 5% in 2015, which is commendable given the high base effect in 2014, prevailing external volatilities and ongoing domestic…

Interview

Filling the gap: OBG talks to Shahril Ridza Ridzuan, CEO, Employees Provident Fund (EPF)
OBG
plus

Interview:Shahril Ridza Ridzuan How concerned are you about Malaysia’s financing gap? To what extent has Malaysia offered solutions to alleviate this problem? SHAHRIL RIDZA RIDZUAN: If you look at Malaysia’s financing gaps, they’ve been well covered over the last few years. This is largely because of domestic institutions, and not simply those like EPF, but also insurance companies and banks that are all flush with liquidity. So there’s never been a problem in terms of funding the…

Analysis

Leader of the pack: The country is at the forefront of Islamic capital markets
OBG
plus

In recent years Malaysia has strengthened its well-earned reputation as one of the world’s leading Islamic capital markets. By the end of 2015 the country commanded more than 54% of total outstanding global sukuk (sharia-compliant bonds) and more Islamic funds than any other fund domicile. As measured by overall assets under management (AUM), the nation’s Islamic fund management industry was the second largest in the world, according to data from Securities Commission Malaysia (SCM), the capital…

Analysis

Much in common: Connecting Islamic finance with socially responsible investing leads to attractive growth opportunities
OBG
plus

There is no denying that the Islamic capital market is increasingly attracting global attention as an alternative means of raising capital and investing, as the array of sharia-compliant products continues to expand, offering high-quality and financially efficient structures in the international market. New products and innovative solutions continue to be developed, as key markets active in Islamic finance, such as Malaysia and the Middle East, support development and promotional efforts, and Islamic finance continues to garner acceptance and recognition across the globe. The Principles Malaysia, a global centre of excellence within the Islamic…