Page 11 - SC SCAR 2023 ENGLISH Flipbook

CHAIRMAN’S MESSAGE
ADVANCING CAPITAL MARKET AGENDA
The SC is committed to Malaysia’s MADANI Economy Framework (Ekonomi MADANI) and the Capital Market Masterplan 3 (CMP3) to steer Malaysia’s capital market in a challenging global environment. Our focus on building a robust, inclusive and sustainable ecosystem is reflected in the introduction of several reforms designed to enhance the efficiency, competitiveness, and accessibility of the capital market, thus ensuring its continued vitality.
In the ever-evolving market landscape, stakeholder collaboration is key. We are committed to engaging with and consulting all key stakeholders in developing relevant policies to reflect changing needs. We are undertaking significant reforms to the two key legislations – the Capital Markets and Services Act 2007 (CMSA) and Securities Commission Malaysia Act 1993 (SCMA). This is to ensure that the SC is future-ready in discharging its developmental and regulatory roles.
Additionally, we continue to make our impact felt internationally. As a board member of the International Organization of Securities Commissions (IOSCO) and incoming chair of the ASEAN Capital Markets Forum (ACMF) in 2025, we are not just strengthening our regulatory framework, but also showcasing our commitment to global best practices and leading the region in capital market development.
Efficiency and Competitiveness
We recognise that better time-to-market is crucial for businesses or products to successfully time their market entry. This will promote market dynamism, mitigate the risk of missed opportunities, and improve cost- effectiveness for businesses.
We have rolled out several initiatives to support this goal. They include the Focused Scope Assessment (FSA) for new and eligible Capital Market Intermediaries (CMI) and Recognised Market Operators (RMOs). The FSA halves the licensing and registration processing time to three months for identified activities while improving the quality of submissions.
As for companies going for listing on the Main Market, we have enhanced our processes to improve our turnaround time to three months. The streamlining in our gatekeeping approach is also in response to
the capital market’s evolving maturity and regulatory landscape.
We are also focusing on clearer delineation of key market segments as part of the SC’s ongoing public market review. The new accelerated transfer process from the ACE to the Main Market for eligible ACE Market companies is one such initiative. It will also help reduce market friction.
As part of the SC’s commitment to maintain capital market competitiveness and vibrancy, and boost investor participation, we have implemented the Guidelines on Categories of Sophisticated Investors. The new ‘Knowledge and Experience’ category will benefit individuals who do not meet financial criteria but are able to demonstrate financial knowledge sophistication to participate in relevant market offerings.
We also want to widen access and affordability in the domestic stock market through initiatives such as the Foreign Exempt Scheme (FES) and the introduction of fractional trading, which enables investors to buy portions or slices of stocks, to cater for their budgets especially among the young investors.
But we are not only seeking to make investment available to a wider group of investors. The SC is also grooming more micro, small and medium-sized enterprises (MSMEs) so they can eventually access capital market funding. Towards this end, we signed a Memorandum of Understanding with SME Corp Malaysia in 2023. The tie-up will help groom MSMEs towards an eventual listing, which will include improving their sustainability and corporate governance, thus creating a robust pipeline to reinforce and enliven our stock market.
Enhancing Sustainability
The SC remains serious about advancing Malaysia’s capital market and support its transition towards a low-carbon economy. Following the introduction of the Principles-Based SRI Taxonomy for the Malaysian Capital Market in December 2022, we are working on the SRI Taxonomy Plus-Standards to improve clarity when identifying economic activities.
In addition, we have come up with the SRI Guide for Private Markets and revised guidelines on SRI Funds. We also want SMEs to make a start towards ESG disclosures, which are already important if they have international customers and will become even more so,
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023 9