Page 12 - SC SCAR 2023 ENGLISH Flipbook

CHAIRMAN’S MESSAGE
as they progress towards listing. Towards this end, we have introduced the Simplified ESG Disclosure Guide for SMEs. We have also expanded the wholesale fund framework to include permissible investments beyond current conventional assets.
However, we are not only looking to help companies transition to a more sustainable path. The SC is also looking to transform our own practices, and with that in mind, we have embarked on the Sustainability First Initiative (SFI), which is in line with the ongoing efforts to encourage adoption of sustainability initiatives in the capital market.
We understand that you need to do more than pay lip service to sustainability and corporate governance if these practices are to become firmly entrenched within the boards of listed companies in Malaysia. Thus, we have introduced the Leading for Impact Programme (LIP) for directors of public companies, to enhance their corporate governance and sustainability practices.
We believe that Malaysia should play to its strengths. With that in mind, we are leveraging Malaysia’s Islamic finance leadership, which has topped the Global Islamic Economy Indicator (GIEI) for 10 consecutive years. The SC’s industry sustainability efforts also aligned with the Islamic capital market (ICM) initiatives, which promote an inclusive and equitable economy. These include harnessing the potential of waqf and introducing the Maqasid Al-Shariah Guidance for the Islamic Capital Market Malaysia (Guidance). The universal guiding principles in the Guidance are designed to enhance the ICM’s competitive edge and fortify its societal and economic impacts.
UPHOLDING MARKET INTEGRITY
At the heart of our mission lies a steadfast commitment to maintaining the integrity of the market. We take breaches of securities laws very seriously. Throughout 2023, the SC has been relentless in its pursuit of those who violate these laws, achieving successful outcomes in cases of insider trading, securities fraud and offences related to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. For instance, in early 2024, we initiated criminal proceedings against individuals involved in alleged money laundering offences totalling RM183.5 million. Currently, we are dealing with 32 cases in various stages of legal proceedings. Through successful civil suits and
regulatory settlements, we have identified RM4.5 million for restitution.
Our aim is to ensure that investors are empowered with the necessary information and education to make informed decisions. To combat unlicensed activities and scams, we have ramped up our surveillance and strategic communication. In 2023, we established an internal Task Force to focus on scams and unlicensed activities. Through this initiative, we rolled out user-friendly tools, such as the Investor Alert page and ‘Scam Meter’, helping investors to stay informed and one step ahead of scammers. We also introduced the new ‘Investment Checker’ portal which provides a quick way for investors to verify the legitimacy of regulated activities.
We need a proactive strategy to address the growing threats of investment scams and unlicensed activities. Towards this end, the SC is also establishing a dedicated unit to enhance its effectiveness in combating financial scams. However, as much as we take up the cudgels on their behalf, investors must also exercise caution and take ownership of their investment decisions.
BOOSTING DIGITAL INNOVATION
We encourage new ideas, solutions, and advancements in digital technology within the Malaysian capital market. The SC is focused on meeting the growing need for digital and online services by encouraging market players to embrace innovative digital capabilities, leading to greater growth and development in the market. Some of our notable initiatives in this sphere include the RM30 million DIGID fund to catalyse digital transformation and greater innovation within the capital market ecosystem, while FIKRA ACE is dedicated to expanding the Islamic fintech sector and its talent pool.
With digital technology advancing rapidly, navigating the complexities of digital communication and devices becomes increasingly challenging. For instance, we need to enhance our digital forensic capabilities to effectively address securities laws breaches and offences. That is why we have set up the Digital Forensic Lab, a dedicated centre housed at the SC to strengthen our investigative capabilities and stay ahead in digital crime investigations.
While the SC continues to promote the industry’s greater adoption of Regulatory Technology (RegTech), we are also taking a proactive approach by adopting Supervisory Technology (SupTech) and data analytics.
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SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023