KUALA LUMPUR – Malaysia’s domestic capital market posted a net fund inflow totalling RM6.3 billion as of July this year, said Bursa Malaysia Berhad chairman, Tan Sri Abdul Wahid Omar.
During the recent ‘Karnival Saham’ held in Pahang, he said that the capital markets are still orderly although the environment is recently experiencing uncertainties.
According to him, Malaysia’s domestic capital market is expanding, seen from the performance of market capitalisation with RM1.79 trillion or 116% of the country’s GDP as of the end of last year.
He stated that the continuous growth of the local capital market has enabled the retail segment to access more opportunities for alternative savings and investment instruments while at the same time allowing the general public to invest in the capital market.
Additionally, he said that more retail participation should be encouraged in Malaysia’s domestic capital market, in order to drive the country’s economic growth and bolster the nation’s long-term sustainability.
Also at the event, he said that Pahang currently has 34 publicly listed companies with its total market capitalisation worth RM108.5 billion, or 7% of the GDP.
Abdul Wahid explained that the average daily value of retail investors had decreased slightly from RM1.6 billion in 2020 to RM1.3 billion last year while Pahang’s retail segment participation still remains low.
Thus, the event was held as part of Bursa Malaysia’s efforts to increase the awareness of early investment within Pahang’s community with its aim to increase the overall number of retail investors in the capital market, he stated.
He noted that there have been some major initiatives implemented to raise public awareness on Malaysia’s domestic capital market investment, including Bursa Marketplace that showcases several key investment tools for keen investors to learn the basics of investment.
Apart from that, there’s the Bursa Academy e-learning platform that provides information about three different markets which are equity, derivatives and Islamic capital market.
He explained that investors must have the proper financial knowledge and the right investment tools to avoid falling prey to investment scams that are on the rise due to the global market uncertainties caused by COVID-19 and are seen to pose financial threats to new investors.
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