Page 88 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

Chart 7
The Malaysian capital market continued to play a vital role in financing the domestic economy
Malaysian capital market size Total funds raised via capital market

3.5
Total in 2018: 160 Total in 2018:
RM3.1 trillion RM114.6 billion
3.0 140

2.5 1.4 120
9.2
RM trillion 2.0 RM billion 80
100

1.5
60
105.4
1.0 1.7 40

0.5 20

0.0 0
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018

Debt securities outstanding Equity market
Equity market capitalisation Corporate bond market

Source: SC, BNM, Bursa Malaysia

The Malaysian bond market grew 8.8% from Malaysian Government Securities (MGS) yields
RM1.3 trillion in 2017 to RM1.4 trillion as at end experienced upward pressure across tenures
of December 2018, with Malaysia remaining as during the year (Chart 8). In June, however, yields
the third largest local currency bond market as a eased amid weaker inflation outlook, and as the
percentage of GDP in Asia in 2018, after Japan government’s focus on consolidating its fiscal
and South Korea. Ongoing trade tensions, tighter position bolstered market confidence. The yield
financial conditions globally due to monetary policy reduction extended to all tenures in July as lower
normalisation by major central banks and general inflation expectations and market’s interpretation of
risk-off sentiments towards emerging markets a dovish hint by Bank Negara Malaysia (BNM) in its
stemming from contagion fears, however, drove July Monetary Policy Committee meeting supported
volatility in the bond market throughout 2018. demand. Yields remained broadly stable thereafter

78 | PART 4 »» CAPITAL MARKET REVIEW AND OUTLOOK

NEW_70-89.indd 78 2/21/19 9:29 AM