Page 79 - SC SCAR 2023 ENGLISH Flipbook

PART 3 STRENGTHENING THE SUSTAINABILITY AND COMPETITIVENESS OF THE CAPITAL MARKET
Notwithstanding, the accelerated transfer process does not preclude any ACE Market companies that meet the Main Market entry requirements to apply for a transfer to the Main Market under the existing normal transfer process.
Issues Relating to Raising of Funds by Unlisted Public Companies
There are increasing regulatory concerns on offerings of shares by UPCs which affects investors.
The SC views this seriously and has taken various steps to address the same. This includes engaging with management of the UPC and other key stakeholders involved in fundraising activities, to express its concerns as well as to highlight the expectations in terms of compliance with the relevant laws and regulations governing the fund raising activities.
Further, the SC is also undertaking a comprehensive review of the regulatory framework in respect of offerings of shares by the UPC towards greater investor protection.
DEMOCRATISING INVESTMENTS THROUGH DIGITAL INVESTMENT SERVICES
Technological advancements and changing consumer behaviours continue to shape the capital markets. Increasingly, consumers are demanding for more data for decision-making, personalised investing experience, and investment options, including alternative assets through digital channels.
E-wallets with embedded finance has played a pivotal role in meeting these evolving demands as they seamlessly integrate financial services into their platforms, while offering users not only a secure and convenient means of managing their funds but also expanding access to digital investment services.
Since 2016, the SC has been facilitating the provision of digital investment services that enhances accessibility and convenience in the financial landscape with the registration of four new e-service providers and one new DAX in 2023.
Digital Investment Management
The introduction of the digital investment management (DIM) framework in 2017 has enabled both new and established market participants to embrace digitisation and foster the creation of innovative and more efficient approaches of providing capital market products and services to investors.
As at end 2023, DIM has grown 400 times in total AUM, valued at RM1.6 billion. While the DIM AUM constitutes less than 1% of total AUM in the fund management industry, there has been a steady upward trend, with a 15% growth in 2023. DIM has increasingly expanded its reach to beyond Klang Valley, empowering more investors to gain access to a range of DIM investment opportunities. (Refer to Figure 2 - Snapshot of DIM industry).
E-Services Platform
The e-services platform (eSP) framework introduced in 2020, has further enhanced the digital landscape of Malaysia’s capital market. The framework enables platforms like e-wallets and e-payment service providers to democratise the online distribution of capital market products, such as unit trusts, making them accessible to a diverse range of investors. To date, 43 capital market products have been facilitated through these platforms, allowing seamless and wider access to investment opportunities for everyone.
Since 2021, the cumulative value of subscriptions to capital market products distributed on the eSP has exceeded RM18 million. Notably, in 2023 alone, subscriptions stood at RM12 million, constituting 67% of the total subscriptions since inception. The market has also witnessed continued interest in eSP with a 27% increase in the number of accounts created in 2023, compared to 2022.
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