KUALA LUMPUR: There is a need for widening the credit spectrum in terms of accessibility of the capital market.
Securities Commission Malaysia chairman Datuk Syed Zaid Albar said while the bond and sukuk market is deep, the credit profile is relatively narrow, with RM384 billion in papers rated as investment grade as at June 2019.
“This has important policy implications, as the inability of lower-rated issuers to access the bond market may result in an inequitable two speed financial system, where lower rated issuers face constraints in accessing both market based and non-market based financing,“ he said in a special address at the RAM–SIDC Bond Conference “Fresh Perspectives: Engineering the Future of the Malaysian Bond & Sukuk Market” here this morning.
He added that this may impact the ability of Malaysia’s emerging corporates to scale up and grow into future blue-chip companies.
More to come