Page 35 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

SmartFinance features fair and independent content A capital market that is vibrant and efficient will see
complemented by financial toolkits. It adopts an greater participation from investors and issuers. This
interactive approach in educating the public via will lead to increased market liquidity, improvements
videos on investing, retirement planning and money in price discovery, and reduction in cost of raising
management, among others. Uniquely, investors are capital, thereby facilitating capital formation, wealth
able to connect directly with licensed financial creation and resource allocation.
planners based on location, areas of specialisation
and range of planning fees. The equities market in particular has seen changing
dynamics in recent years arising from shifting investor
behaviour and needs, the evolution of technology as
SPURRING GREATER VIBRANCY AND well as greater regulatory demand for transparency
EFFICIENCY IN THE CAPITAL MARKET and better risk management. In addition to this,
Malaysia’s equity market has also seen greater
The capital market is a vital engine of growth for competition from other emerging market economies.
the country’s economy – it facilitates the conversion
of investor savings into capital for businesses, which These trends disrupt not only the way investors trade
allows the flow of funds to entrepreneurs, in turn securities, but also impacts the value of intermediaries
generating returns for investors either in the form of and types of services offered, revenue models and
capital gains or dividends, or both. settlement efficiency. To remain competitive, the
Malaysian equity market and its ecosystem will need
to evolve to see greater vibrancy and efficiency.

Diagram 11
Changing market dynamics

Changing investor Evolution of Enhanced Competition from
behaviour technology regulatory other emerging
and needs requirements markets

• Instant access to • Analytics for greater • Impact of MIFID II • Reduced MSCI EM
information trading insights to intermediaries index share with the
• Seamless user • Use of mobile • Greater inclusion of China,
Argentina and Saudi
experience technology for requirement Arabia
trading for efficient
• Greater diversity in intermediary • Greater choice for
investment options • Growth in algo controls and local and foreign
trading sees greater
• Preference for demand on trading surveillance of issuers
technology-enabled infrastructure secondary market • Investors have more
processes emerging market
• Fintech disruption options to consider
• Greater fund flows to
more liquid markets

PART 1 »» ENABLING SHARED VALUE GROWTH | 25

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