Capital market reform is on track: Abdullah

  • Nation
  • Monday, 11 Jul 2005

News Update by The Star News Desk 

KUALA LUMPUR: Capital market reform in Malaysia is on track with more than half of the recommendations of the Capital Market Masterplan (CMP) being implemented, Datuk Seri Abdullah Ahmad Badawi said. 

"Malaysia is fully committed towards the long-term development of its capital market.  

"The government acknowledges that it is in its best interest that efficient market mechanisms are put in place to perform the tasks of mobilising capital, promoting capital formation and ensuring that capital is allocated in an efficient manner," the Prime Minister said at the opening of the Asian Financial Association and Financial Management Association International Conference 2005 here on Monday. 

His speech was read by Minister in the Prime Minister's Department Datuk Mustapa Mohamed, who represented Abdullah at the opening ceremony. 

He said one of the main thrusts of the CMP was to broaden the sources of financing so that the Malaysian capital market was able to offer a variety of instruments for raising funds. 

He said the corporate bond market was being developed into a competitive source of financing for domestic companies, while the venture capital industry was expanding to finance high-growth companies. 

"Development of the Islamic Capital Market is being accelerated to meet the needs of issuers wishing to employ Syariah-compliant instruments to raise funds," he said. 

Abdullah said the reforms had begun bearing fruit, as seen in the changing structure of the Malaysian economy. 

As at last year, the equity market capitalisation stood at RM722bil and debt securities outstanding amounted to RM379bil, giving a capital market assets grand total of RM1.1tril. 

"It is encouraging to note that the diversification of the Malaysian capital market ensures a prudent balance between debt and equity assets," he said.

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