MASTERPLAN TO ENSURE MORE RELEVANT, EFFICIENT AND DIVERSIFIED CAPITAL MARKET -- SC

KUALA LUMPUR, Sept 21 -- The Capital Market Masterplan 3 (CMP3) (2021-2025) is aimed at ensuring that Malaysia’s capital market remains relevant with the upgrade of the economy, is more efficient in mobilising capital into productive economic sectors, and encourages greater diversity.

Securities Commission (SC) chairman Datuk Syed Zaid Albar said as Malaysia transitions to become a high-income economy, it is important to ensure that the growth is inclusive, with economic gains shared more broadly across all Malaysians. 

“Well-targeted interventions are necessary to mould our capital market to enable broader participation in the capital formation process, facilitate more inclusive and effective mobilisation of savings, as well as embed the culture of good corporate governance.

“In order to rise to this challenge, the tone and future direction for our capital market and its participants must be set – to offer a guiding light. In sum, the CMP3 aspires for a capital market and a supportive ecosystem that works for the collective benefit of all,” he said in the commission’s CMP3 report released today.

Strategic initiatives over the next five years will be guided by six key development and regulatory priorities.

Syed Zaid said these strategic thrusts focus on catalysing competitive growth, empowering investors for a better future and shaping a stakeholder economy, while simultaneously embedding shared accountability, prioritising efficiency and outcomes, as well as embracing technology.

These priorities are aimed at ensuring the capital market achieves three desired outcomes.

Firstly, the capital market must continuously innovate to remain relevant, and better serve the economy and investors of the future, he said.

Secondly, it should provide efficient and reliable infrastructure and services, accompanied by a fit-for-purpose regulatory architecture that evolves in line with changing trends and behaviours.

Finally, a diversified market ecosystem is a prerequisite to strengthen the Malaysian capital market’s overall competitiveness, he said. The multi-layered market will be supported by a competitive and technology-enabled intermediation landscape that allows market participants to innovate and evolve.

“Achieving these desired outcomes calls for each and every stakeholder to embrace several key ingredients for success.

“High standards of care, diligence and governance must be prioritised across all products and market segments,” he said.

Syed Zaid also pointed out that intermediaries and service providers need to integrate agility and flexibility into their work processes, supported by effective management of risks, better capital and resource utilisation, as well as a greater emphasis on talent and innovative skillsets.

-- BERNAMA