KUALA LUMPUR: Bursa Malaysia is working towards increasing the participation of retail investors in the Malaysian equity universe, in tandem with the stock exchange operator’s aim to boost market vibrancy over the long run.
According to Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift, the stock exchange expects to lift retail investor participation share to 30% over the long run.
Meanwhile, the participation of foreign and institutional investors is expected to be around 70%.
“That is our internal target and what we are encouraging. For comparison, in the first quarter of 2019, retail investor participation in Bursa Malaysia stood at about 25%, while foreign and institutional investors stood at 75%.
“Year on year, we have seen greater retail trading,” said Umar, adding that retail investors’ share was 22% by end-2018.
Umar was speaking to reporters after the launch of the Bursa Anywhere app yesterday.
The Bursa Anywhere app is the first mobile central depository service (CDS) electronic platform in South-East Asia and the second in Asia, after Taiwan.
The mobile application, which targets retail investors in the Malaysian stock exchange, is designed to become a “one-stop” platform where investors can manage their multiple CDS accounts without much hassle.
By using the Bursa Anywhere app via their smart devices, investors can view the balance shareholdings in all their direct CDS accounts with marked to market value. Among other services, the statement of accounts for the past 12 months can be downloaded and investors will receive notifications related to their shareholdings such as announcements on entitlements.
The Bursa Anywhere app will be accessible to all. However, transactional services are made exclusive to individual investors who possess direct CDS accounts and are registered as users of Bursa Anywhere.
The registration for Bursa Anywhere can be done at zero cost. The web version of the platform will be available from the fourth quarter of this year.
Umar said the Bursa Anywhere app will provide investors with a seamless experience that will not only facilitate their trading efficiently, but also usher in a new era of empowerment and control.
With Bursa Anywhere, he pointed out that investors can look forward to a broader suite of services that include subscription to initial public offerings and rights issues, transfer of securities between CDS accounts and the registration for e-dividends to receive cash dividends straight into investors’ bank accounts.
“We aim to deliver a remarkable in-your-hands experience to the nearly two million CDS account holders, providing the needed access to information, movements and trends that can open up new possibilities for them.
“We will continue to enhance our digital touch points and look forward to providing more innovative platforms that will collectively help grow the wealth of our nation,” he said.