Overall pipeline M'sian capital raising expected at RM75b
Published on: Friday, September 04, 2015
Kuala Lumpur: The Malaysian capital market is healthy despite the current volatility in the economy, with the overall pipeline for capital raising expected to be about RM75 billion this year.Chairman of the Securities Commission Malaysia, Datuk Ranjit Ajit Singh, said out of the RM75 billion, about RM70 billion would be from the bond market and the rest from the equity market.
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"For the last few years, we have about RM90 billion capital raised from the initial public offerings and the bond market," he told reporters after the launch of the World Capital Markets Symposium here Thursday.The two-day symposium is a platform to promote informed debate on the capital market led by global opinion leaders, policymakers, domain experts and market leaders.Ranjit said the volatility in the economy was a global phenomena affecting many emerging markets and for the Malaysian capital market to have a capital-raising pipeline of about RM75 billion was quite encouraging."Any market, both domestic and foreign, that is open and committed to having investor participation must be prepared to face volatility in their market.
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"Malaysia has demonstrated that its market is resilient and developed a very diversified financial system, with RM1 trillion bond market and RM1.3 trillion equity market currently," he said. Meanwhile, capital market players must identify, understand and appropriately mitigate potential risks in the market pertaining to cyber security, investor protection and market integrity.
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Ranjit said for the market to fully serve its economic role, it must not only be safe but also be purposeful and accessible to the millions of consumers and businesses.He said naturally occurring market failures such as information asymmetry and monopolies resulted in pockets of underserved users of the financial system, which dampens the dynamism of the overall economy."A potential solution to this issue may lie in technology, which is transforming the capabilities of financial markets and disrupting the traditional value chain of businesses with breathtaking speed."By improving the customer service experience while broadening access and reducing costs, technology may potentially result in significantly more efficient and inclusive markets," he said.He said the growing financial technology or fintech currently has its significant potential to disrupt the business model of incumbents and appeal to a wider audience by promising user-friendly services that transcend demographic, geographical and infrastructure barriers.The symposium was also attended by the Prime Minister Datuk Seri Najib Tun Razak.During his keynote address, Najib announced the establishment of the Alliance of FINtech Community, or aFINity@SC, which aims to connect fintech entrepreneurs with investors, researchers, mentors and relevant government agencies.The aFINity@SC is put under the SC as the driver in spearheading the initiative.Stay up-to-date by following Daily Express’s Telegram channel.
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