Page 25 - SC SCAR 2023 ENGLISH Flipbook

CHART 4
The size of the Malaysian capital market grew in 2023, despite lower fundraising activities, while AUM of the fund management industry registered a new high
Malaysian capital market size
Total funds raised via capital market
Total AUM
951.1 975.5 905.5 906.5
PART 1 CAPITAL MARKET REVIEW AND OUTLOOK
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0
Total in 2023: RM3.8 trillion
200 Total in 2023: 180 RM127.7 billion
26.0
1,000 900 800 700 9.4 600 500 80 104.6 153.3 400
2.0
160
140
120 17.1 100 10.0
1.6
1.7 1.9
1.8 1.8
60 114.3 118.3 300
1.8 1.720
200 100 0
40 0
Bonds and sukuk outstanding
Bursa Malaysia market capitalisation
Corporate bonds and sukuk market
Equity market
Source: Bursa Malaysia; the SC’s calculations.
primary issuances improved to RM3.6 billion (2022: RM3.5 billion) via 32 initial public offerings (IPOs), while secondary fundraising activities declined to RM5.8 billion (2022: RM22.6 billion) amid lower corporate activities in 2023. Similarly, in the corporate bonds and sukuk market, total issuances normalised to RM118.3 billion in 2023 (2022: RM153.3 billion), following higher refinancing demand in the previous year. There was an exceptional surge in refinancing demand in 2022 amid the introduction of various relief programmes aimed at assisting issuers and intermediaries in their post- pandemic recovery. Total issuances remained healthy and in line with the 10-year average of RM111.2 billion per annum.
Importantly, the Malaysian bonds and sukuk market continued to witness issuances in sustainability-related instruments2, affirming the capital market’s pivotal role in supporting financing needs towards achieving the nation’s sustainability agenda. Meanwhile, the availability of alternative financing platforms continued to promote financial inclusivity, especially in supporting the funding
needs of micro, small and medium-sized enterprises (MSMEs), with total alternative fundraising avenues3 via equity crowdfunding (ECF) and peer-to-peer financing (P2P financing) rising further in 2023.
The domestic equity market was influenced by developments in the domestic economy and global headwinds, with volatility driven by the direction and pace of global monetary policy, ongoing geopolitical conflicts and slower global growth. The overall market capitalisation of the local bourse ended higher at RM1.80 trillion in 2023 (2022: RM1.74 trillion), while that of the FBMKLCI moderated to RM1.01 trillion (2022: RM1.03 trillion). This reflects a positive shift in sentiments favouring medium and small-size companies, as reflected by the favourable performances of FBM Mid 70 and FBM Small Cap. The benchmark FBMKLCI index declined by -2.73% to end the year at 1,454.66 points (2022: -4.60%), while the FBM Mid 70 and FBM Small Cap rose by 12.28% and 9.57% (2022: -8.41% and -5.30%) to 14,612.98 points and 16,353.38 points respectively.
2 3
Sustainability-related corporate bonds and sukuk issuances was RM8.7 billion in 2023 (2022: RM10.1 billion). Funds raised via ECF and P2P financing was RM2.2 billion in 2023 (2022: RM1.7 billion).
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023 23
2015
2016
2017
2018
2019
2020
2021
2022
2023
2015
2016
2017
2018
2019
2020
2021
2022
2023
2015
2016
2017
2018
2019
2020
2021
2022
2023
RM trillion
RM billion
RM billion