The domestic financial services industry plays an integral role in ensuring Malaysia’s economic sustainability. It contributed to 11.6 per cent of the country’s real GDP in 2011, growing at an average of 7.5 per cent in 2006-2011.
In 2012, the financial services sector performed exceptionally well with landmark capital market developments and our banks continuing to remain well-capitalised, demonstrating healthy asset quality and continuing to report record profits, whilst rapidly expanding outside of Malaysia.
Under the Financial Services NKEA, our market performed exceptionally well despite uncertainties in the global economy and markets. The attractiveness of the market also saw foreign investors emerge as net buyers on Bursa Malaysia as at the end of December 2012.
During the year, the divestment of Government-linked Investment Companies (GLICs) continued to gather pace, culminating in some of the world’s largest IPOs, namely Felda Global Ventures Holdings Bhd (FGVH) and Integrated Healthcare Holdings Bhd.
The listings of FGVH and IHH raised RM9.9 billion and RM6.3 billion in capital, respectively, boosting Bursa Malaysia’s market capitalisation by an additional RM39 billion.
The launch of the Private Retirement Scheme (PRS), a voluntary retirement savings plan, marked a significant turning point in facilitating the growth of the private pension industry. The PRS was structured by private sector fund providers and licensed and approved by the Securities Commission (SC).
As at December 2012, RHB Investment Management Sdn Bhd, CIMB-Principal Asset Management Bhd, Manulife Asset Management Services Bhd, Public Mutual Bhd and Hwang Investment Management Bhd had launched a total of 26 PRS funds which fall under the oversight of the SC.