KUALA LUMPUR – With Malaysia’s capital market expected to benefit from the expected domestic economic recovery, Securities Commission Malaysia (SC) feels it is critical for stakeholders to align their focus and assess impacts of strategies that would best suit the market needs.
SC’s executive director (Islamic capital market development) Sharifatul Hanizah Said Ali explained that in order to enable stakeholders to review the market needs, the commission has created the Capital Market Master Plan 3 (CMP3).
The CMP3 is a five-year strategic plan for the growth of Malaysia’s capital market which will implement initiatives guided by essential development and regulatory priorities.
“These strategic thrusts are aimed at encouraging competitive growth, empowering investors for a better future, and forming a stakeholder economy, all while instituting shared accountability, emphasising efficiency and outcomes, and embracing technology,” she said in her keynote address at the recent ninth Malaysian Financial Planning Council e-Conference.
She explained that the SC’s objective is to foster a favourable atmosphere for investor empowerment and financial awareness, in line with the CMP3.
According to Sharifatul, the country’s capital market has maintained its resiliency as it marks a 3.0% growth from the RM3.4 trillion in 2020, to RM3.5 trillion in 2021.
“Despite the numerous hurdles posed by shifting economic conditions, the capital market continues to play a crucial role in financing the economy, with a noticeable increase in fundraising operations and encouraging growth in the fund management industry,” she stated.
Total capital market funds raised remained solid, reaching RM130.9 billion in 2021, exceeding the five-year average of RM121.4 billion prior to the pandemic.
Additionally, Sharifatul said that it is essential to raise the bar on professional standards and conduct criteria in order to improve the overall professionalism within the financial planning industry.
The previously issued Guidelines on Conduct for Capital Market Intermediaries from the SC, also applies to licensed financial planners in order for them to foster ethical business practices and a corporate culture that prioritises fair treatment of clients as well as promote trust amongst intermediaries.
Despite how these regulations could help build a positive culture, she said that the sector must also continue to share positive behaviours within its own organisations.
“For this purpose, it is good to see the industry harmonise and elevate its code of ethics and maintain the best practice standards through relevant certification associations,” she added.
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