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Malaysia's capital market able to raise RM105 billion this year: SC

KUALA LUMPUR: Securities Commission Malaysia (SC) is determined to play an enabler role and projects that the Malaysian capital market could raise as much as RM105 billion this year.

Its deputy chief executive Datuk Ahmad Fairuz Zainol Abidin said the SC is cognisant it needs to play a proactive role in keeping with fast economic growth and an increasingly sophisticated marketplace.

"This growth trajectory has allowed the capital market to remain a significant source of financing for the real economy, with RM105 billion projected to be raised this year.

"And the resilience of the capital market is supported by the strong buffers of liquidity provided by Malaysia’s fund management industry," Ahmad Fairuz said in his keynote address at the Capital Market Conference 2017 here today.

"We have also seen how technology can be deployed to enable cost-savings and added flexibility for an increasingly technology-savvy generation of investors," he explained.

According to Ahmad Fairuz, the World Bank estimates that the global crowdfunding industry could draw up to US$96 billion worth of investments a year by 2025.

At the same event, Bursa Malaysia Bhd chief operating officer Datin Azalina Adham said the capital marketplace is expected to see further excitement next week when Prime Minister Datuk Seri Najib Razak launches Leading Entrepreneur Accelerator Platform (LEAP) at Invest Malaysia 2017.

Azalina said that LEAP is a new way for SMEs to raise funds via the capital market.

She said currently, 96 per cent of fundings for SME comes from the banking sector and LEAP is an additional option for SMEs to raise funds via the capital market.

keywords: Securities Commission Malaysia, SC, Malaysian capital market, RM105 billion, Ahmad Fairuz Zainol Abidin, fast economic growth, real economy

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