This EPP seeks to enhance the vibrancy and liquidity of Malaysia’s capital market to attract quality stock market listings and investors, which will in turn mobilise capital to fund business growth and stimulate new investment.
Initiatives under this EPP aim to increase Bursa Malaysia’s market capitalisation to RM3.9 trillion by 2020 from RM1 trillion in 2010, accounting for a compound annual growth rate (CAGR) of 15 per cent. It also targets to improve liquidity, measured by trading velocity, from 31% of total market capitalisation to 60% in line with regional averages.
Other measures to be undertaken through this EPP include improving the breadth and depth of product offerings, accelerating liberalisation of the stockbroking industry and integrating Bursa Malaysia with leading exchanges.
- As part of an outreach programme to engage, educate and grow Malaysia’s domestic retail participation, Bursa Malaysia launched the BursaMarketplace on 28 April 2014, a first-of-its-kind virtual marketplace providing market insights, real-time pricing information and investor education.
- Bursa Malaysia introduced the ASEAN Post Trade Services on 26 August 2014 to facilitate the clearing and settlement of outbound trades executed on participating stock exchanges and the safekeeping of securities traded.
- During the year Bursa Malaysia also expanded its product range to include MyETF MSCI Malaysia Islamic Dividend, US$ denominated RBD Palm Olein Futures contract (FPOL) and the 5-Year Malaysia Government Securities Futures (FMG5).
- A key development for Bursa Malaysia during the year was the introduction of the Environmental, Social and Governance (ESG) index in December 2014. This milestone underscored Malaysia’s commitment to develop and encourage companies which are committed to improving their ESG practices.
- For the year ahead, Bursa Malaysia will continue to leverage on its Shariah leadership and build a sustainable marketplace by tapping into opportunities from the ASEAN market while maintaining focus and initiatives to engage with retail investors.