SC: Address challenges to build Asean bond market connectivity

Back home, it is clear the Securities Commission (SC) has a few achievements to be proud of this year.

KUALA LUMPUR: Building connectivity in the Asean bond market requires addressing challenges such as the different currencies, legal regimes and foreign exchange control policies.

Securities Commission Malaysia chairman Tan Sri Ranjit Ajit Singh said there was also no mutually-acceptable Asean rating scale nor Asean bond asset class for investors as guidance.

“Asean countries use different currencies, follow different legal regimes, and have different foreign exchange control policies,” he said in his speech at the opening of the Asean Fixed Income Conference 2017: Riding the Wave of Asean Bond Market Integration here yesterday.

Ranjit said various efforts had been taken through several platforms to enable connectivity for Asean bond market.

“For example, the Asean Capital Market Forum (ACMF) which comprises ten Asean security regulators, introduced a fully-harmonised prospectus disclosure requirement through the Asean Disclosure Standards.

“This has enabled issuers from participating Asean jurisdictions to use one prospectus in facilitating cross-border offering of equity and plain debt securities,” he said.

He said following this, a Streamlined Review Framework was introduced for such prospectuses to shorten and provide time-to-market certainty for multi-jurisdictional offerings.

ACMF is now working on other efforts to provide more connectivity for Asean bond market, including creating asset classes for Asean bonds,” he said.

Ranjit said the Malaysian bond market, the third largest in Asia, was strong and initiatives were ongoing to provide access for retail participation, stronger information dissemination and development of sustainable and responsible investments.— Bernama