Page 13 - CMP3

The next chapter of Malaysia’s capital market development offers much promise, but also, its own unique set of challenges. As the Malay proverb goes, “Dayung sudah di tangan, perahu sudah di air”1, the requisite building blocks are in place, provided for by successive master plans. However, the global and domestic landscape is fast-evolving, driven by multiple, and occasionally, opposing forces of change.
There are many consequential structural adjustments occurring in economies, societies and markets; many of which have heightened uncertainties and introduced new risks. Some are highly visible such as rapid digital adoption, while other deeper and more complex issues with numerous socio-economic dimensions have yet to fully manifest. The confluence of these different drivers will impact growth as well as policies in the foreseeable future.
In terms of the domestic environment, Malaysia is transitioning to become a high-income economy. While the present composition of the economy has served the country well, new sectors and growth drivers will be crucial for the next stage of development. Increasingly, it will also be the quality and type of growth that matters. This requires a more vibrant business environment, one that encourages innovation and entrepreneurial risk-taking, coupled with the acumen and vision to succeed not just domestically, but regionally and globally as well.
Equally important as we move into the next phase of development is to ensure that this growth is inclusive, with economic gains shared more broadly across all Malaysians. Well-targeted interventions are necessary to mould our capital market to enable broader participation in the capital formation process, facilitate more inclusive and effective mobilisation of savings, as well as embed the culture of good corporate governance (CG).
In order to rise to this challenge, the tone and future direction for our capital market and its participants must be set – to offer a guiding light. In sum, the CMP3 aspires for a capital market and a supportive ecosystem that works for the collective benefit of all.
Strategic initiatives over the next five years will be guided by six key development and regulatory priorities. These strategic thrusts focus on catalysing competitive growth, empowering investors for a better future and shaping a stakeholder economy, while simultaneously embedding shared accountability, prioritising efficiency and outcomes, as well as embracing technology. Overall, these priorities are aimed at ensuring that the capital market achieves three desired outcomes.
In English translated as “The paddle is in your hand, the canoe is in the water”.
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CAPITAL MARKET MASTERPLAN 3
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