CMP3 to focus on supporting economic growth

The masterplan will enable more inclusive and accessible investment products and distribution channels, SC chairman says

by NUR HAZIQAH A MALEK / Pic by MUHD AMIN NAHARUL

SECURITIES Commission Malaysia (SC) has launched a five-year third Capital Market Masterplan (CMP3) to build a capital market that is relevant, efficient and diversified to enable stronger economic growth.

SC chairman Datuk Syed Zaid Albar (picture) said it is imperative for the capital market to continue supporting the economy as it transits into an inclusive and sustainable nation.

“The progress in the capital market cannot be measured solely by growth and size, as it also has to serve the underlying needs and aspirations of the country and its people,” he said at the launch.

He added that it will be a collective responsibility to bring these strategic thrusts and desired outcomes to fruition, and will require the local capital market to achieve meaningful change.

Also present at the masterplan reveal was Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said the CMP3 fits well into the nation’s aspirations to turn the capital market into a key enabler of the wider population to participate in the nation’s growth by enabling more inclusive and accessible investment products and distribution channels.

“The masterplan as a strategic guide for our capital market over the next five years and I am confident it will continue to play an important role in the Malaysian economy,” he said.

To achieve the desired outcomes, the CMP3 outlines six key development and regulatory thrusts to collectively serve as pillars in developing strategic initiatives over the next five years.

The first development thrust is facilitating fundraising for competitive businesses through a diverse market and intermediation ecosystem, as the CMP3 also aims to empower all Malaysians to invest for their future, and promote digital inclusion and protection for vulnerable investors.

Through the Sustainable and Responsible Investments and Islamic Capital Market pillars, the masterplan aims to shape a stakeholder economy by mobilising more capital towards sustainable businesses.

In tandem, the SC’s regulatory approach will also evolve in response to changing trends and market landscape.

The masterplan aims to embed a greater shared accountability within the capital market, particularly corporate responsibility to stakeholders beyond short-term profitability, as well as to achieve a more efficient regulatory outcome and greater efficiency in investor protection through swift, effective and targeted enforcement and supervision approaches.

In addition, as the industry becomes more digital, the CMP3 envisions greater use of technology, both named RegTech and SupTech for greater efficiency and deeper insights.

The first two masterplans namely CMP1 (2001 to 2010) and CMP2 (2011 to 2020) have expanded the local capital market while ensuring stability and integrity.

The two masterplans have developed Malaysia’s now well-diversified capital market with an equity market of over 900 listed companies, a bond market that is the third largest in the continent, an Islamic capital market that is well-regarded globally, a derivatives market that leads in crude palm oil price discovery and a unit trust industry that is one of the largest in the region.

The CMP3 plans to build on the foundation of the former two, which have also implemented governance strategies.