KUALA LUMPUR: The Malaysian capital market remained orderly and continued to finance the economy, with total funds raised hitting a record high of RM179.4 billion and this exceeded the five-year pre-Covid-19 pandemic average of RM121.4 billion, said Securities Commission Malaysia chairman Datuk Seri Dr Awang Adek Hussin.
In a statement issued today, he said the 2022 performance, led by a record amount of corporate bond and sukuk issuances, was achieved despite increased global market volatility and headwinds.
Awang Adek said the continued resiliency of the Malaysian capital market highlighted the value of exercising prudence and shared accountability while capitalising on growth prospects that arise.
“This approach allows the market to better manage risks, preserves overall financial resilience and stability, and supports economic growth,” he said.
The SC Annual Report 2022 released yesterday highlighted the regulator’s efforts in promoting market integrity, investor protection, and the development of the Malaysian capital market. This ensured the capital market’s role in financing sustainable development, while facilitating continued innovation to address emerging risks and challenges.
Among the key highlights outlined in the report are equity crowdfunding (ECF) and peer-to-peer financing (P2P) platforms continue to facilitate the funding needs of micro, small and medium enterprises (MSME), with the total funds raised recording an increase of 26% from RM1.4 billion in 2021 to RM1.7 billion in 2022. Since their inception, ECF and P2P have helped 7,218 MSME raise over RM4.4 billion.
Total funds raised via P2P financing rose to RM1.58 billion in 2022 from RM1.14 billion in 2021. At end-2022, the total number of issuers stood at 6,913 with an 88% increase to 3,732 issuers against 1,886 in 2021.
The report also highlighted that the Islamic capital market (ICM) comprising total sukuk outstanding and syariah-compliant equity market capitalisation, saw a marginal increase of 0.6% compared with the previous year. The ICM has increased at a compound annual growth rate (CAGR) of 4.2%, driven by the increase in total sukuk outstanding (9.3% p.a) while syariah-compliant equities remained relative flat (0.1% p.a.). Ongoing efforts to broaden and deepen the ICM were made, including the issuance of the Guidelines on Islamic Capital Market Products and Services to facilitate efficient access to the ICM ecosystem.
It said the capital market continues to prioritise good corporate governance and sustainability practices. As of March 1, 2023, 30% of the top 100 public listed companies are led by women, and all top 100 public listed companies have at least one woman director on board.
To address scams and unlicensed activities, the SC established an internal task force, a proactive measure to ensure that such activities are identified and dealt with in a timely manner.
In 2022, 185 websites were blocked and 304 new entries were added to the SC’s Investor Alert List, compared to 143 websites and 134 new entries in 2021.
Moving forward, Awang Adek said some of the areas of focus in 2023 include regulatory reforms, enhancing the fundraising ecosystem, advancement of the ESG agenda, facilitation of technology adoption and improving of corporate governance.
