Malaysian capital market grows 12.6% to RM3.2 trillion in 2017

KUALA LUMPUR: The Malaysian capital market grew 12.6% to RM3.2 trillion last year, with total fundraising hitting a record high of RM146.6 billion, above the five-year average of RM116 billion.
According to the Securities Commission Malaysia's (SC) annual report 2017, equity market capitalisation grew 14.4% to RM1.9 trillion while bond and sukuk outstanding grew 10.1% to RM1.3 trillion.
Islamic capital market increased by 11.9% to RM1.9 trillion, representing close to 60% of the overall capital market.
Of the total RM146.6 billion funds raised last year, RM124.9 billion was raised in the corporate and bond market, RM7.2 billion was raised via 12 initial public offerings (IPOs) and RM14.5 billion was raised in the secondary equity market.
The fund management industry posted 11.5% growth with assets under management of RM776.2 billion compared with RM696.3 billion in 2016 while the unit trust industry grew 19.1% to RM427 billion in net asset value.
For 2018, the SC expects total capital raising through primary and secondary markets to remain resilient at about RM120 billion.
Fundraising through the corporate bond and sukuk market is expected to amount to about RM100 billion.
Equity fundraising is expected to be about RM20 billion, with RM8 billion to be raised via IPOs and RM12 billion via the secondary market.