KUALA LUMPUR: Government-linked Investment Companies (GLICs) are to allocate up to RM3 billion to invest in small and medium public listed entities on Bursa Malaysia, said Second Finance Minister Datuk Seri Johari Abdul Ghani.
This, he said is because the government wants to enhance liquidity and investors’ interest in small and medium-sized public listed entities trading on the stock exchange.
“The equity and capital markets are important conduit to the broader economy. We want all participants in the stock market to receive deserving investors interest because the small and medium sized enterprises are integral to Malaysia’s economy,” he said.
“To get the ball rolling, the GLICs are to allocate additional RM3 billion in small and medium sized public listed entities that offer good value,” the minister said in his speech at the launch of Mid & Small Cap Research Scheme here today.
Malaysia’s seven GLICs are the Minister of Finance Incorporated (MOF Inc), Permodalan Nasional Bhd (PNB), Khazanah Nasional Bhd (KNB), the Employees Provident Fund (EPF), Lembaga Tabung Angkatan Tentera (LTAT), Lembaga Tabung Haji (LTH) and Kumpulan Wang Persaraan (Diperbadankan) (KWAP).
Johari was speaking before an audience of some 200 fund managers, brokers, remisiers, research analysts and media practitioners.
Also present at the launch were Securities Commission chairman Tan Sri Ranjit Ajit Singh, Bursa Malaysia chairman Tan Sri Amirsham Abdul Aziz, Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan, KWAP chief executive officer Datuk Wan Kamaruzaman Wan Ahmad, Malaysian Investment Banking Association stockbroking committee chairman Lok Eng Hong and Association of Stockbroking Companies Malaysia chairman Rashid Ismail.
Bursa Malaysia, as administrator of Mid & Small Cap Research Scheme, has been tasked to promote small and medium-sized public listed entities via roadshows to investors and traders.
Amirsham said the Capital Market Development Fund will pay 22 research houses to analyse 100 small medium public listed companies for three years to spur capital market liquidity.
Amirsham also noted two new indices; the FTSE Bursa Malaysia MidS Cap Index and FTSE Bursa Malaysia MidS Cap Shariah Index were launched to spur investors’ interests in small and medium-sized hidden gems trading on the stock market.
Johari then said he will benchmarked the GLICs against the FTSE Bursa Malaysia MidS Cap Index and FTSE Bursa Malaysia MidS Cap Shariah Index, in order to gauge their performances.
keywords: Government-linked Investment Companies, GLICs, small and medium public listed entities, Bursa Malaysia, Finance Ministry, Johari Abdul Ghani