KUALA LUMPUR: Capital market reform in Malaysia is on track, with more than half of the recommendations in the Capital Market Masterplan implemented.
Malaysia is fully committed towards the long-term development of its capital market, said Datuk Seri Abdullah Ahmad Badawi.
The Government acknowledges that it is in its best interest that efficient market mechanisms are put in place for mobilising capital, promoting capital formation and ensuring that capital is allocated in an efficient manner.
The Prime Minister said this in his speech read by Minister in the Prime Ministers Department Datuk Mustapa Mohamed at the Asian Financial Association and Financial Management Association International Conference 2005 here yesterday.
Abdullah, who is also Finance Minister, said the main aim of the masterplan adopted in 2001 was to provide a means for reform executed in a well-planned and progressive manner.
One of the main thrusts of the masterplan is to broaden the sources of financing so that the Malaysian capital market is able to offer a variety of instruments for raising funds.
Abdullah 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.
The Prime Minister said the reforms had begun to bear fruit. As of last year, equity market capitalisation stood at RM722bil and debt securities outstanding amounted to RM379bil, giving a grand capital market assets 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.
In Putrajaya's Dataran Perdana at a morning assembly with his staff, Abdullah said civil servants could avoid problems with contractors if they monitored the development and construction of their projects.
Often, civil servants ran into disputes with contractors when the end result of their projects did not turn out as planned, he said.
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