Malaysia capital market has raised RM978b over the past decade

KUALA LUMPUR: The Malaysian capital market has raised a healthy RM978 billion over the past decade.

Stating this, Prime Minister Datuk Seri Najib Abdul Razak said the capital market has been a vibrant source for fundraising and investment.

"Malaysia's development, and many public and private initiatives, have been facilitated by the availability of ample financing.
"It is supported by extensive market intermediaries and a sizeable fund management industry, while governed by a robust, conducive regulatory framework under the purview of the Securities Commission (SC)," he said in his keynote address at the address at the International Investment Fund Forum 2017 here today.

Najib's speech was read by Finance Minister II Datuk Johari Abdul Ghani.

He said the well-developed bond and sukuk market in Malaysia, complemented by the equity market, enabled funding to be raised efficiently and competitively across different maturities and industries.

"Malaysia's overall bond market is among the largest in the region, while its world-leading sukuk market accounted for 54% of total sukuk outstanding globally as at end 2015.

"Furthermore, the sukuk market facilities structures is based on a wide range of shariah principles, thus providing issuers with options that suit their respective asset profile and cash flow requirements," said Najib, who is also Finance Minister.

Referring to the compounded annual growth of 12% of the Islamic capital market, he said it has more than tripled between 2005 and 2015.

"With a market size of RM1.7 trillion as of November 2016, it represents 60% of the total Malaysian capital market and it is fully comprehensive ecosystem," he said.

Najib the the combination of regulations, Syariah governance, legal and tax frameworks as well as market intermediaries, products and services are all the critical factors for a successful Islamic capital market.

"Apart from the development of the sukuk market, the SC has also put much effort into enhancing the area of Islamic funds.
Malaysia now has the highest number and second largest assets under management, of Islamic funds in the world. This has also contributed to Malaysia being recognised as a leading market for sustainable and responsible investment," he said.