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Firstly, the capital market must continuously innovate to remain relevant, and better serve the economy and investors of the future. The dynamism of nimble yet rapidly scalable business models in addition to well-established public companies will be key to not only lift incomes and drive prosperity, but ensure the nation’s growth trajectory is sustainable and equitable. Alongside the public markets, private markets must also grow in tandem to support these businesses. This calls for intermediaries and service providers to be responsive to the needs of tomorrow’s businesses and investors, in order to tailor the appropriate market solutions for them to prosper and grow.
Secondly, the capital market should also lead in terms of providing efficient and reliable infrastructure and services. More seamless integration and automation across the market value chain will raise the bar on the fundraising and investment experience. The provision of real-time disclosures and information, along with a more bespoke investment approach across products and market segments, will also serve to expand investment capabilities and literacy. This speaks to technology and cost-effective methods in upgrading processes and addressing impediments, among others. Complementing these will be a fit-for- purpose regulatory architecture that evolves in line with changing trends and behaviours.
Finally, a diversified market ecosystem is a prerequisite to strengthen the Malaysian capital market’s overall competitiveness. Infusion and renewal of market intermediaries, platforms and service providers can help raise the level of market sophistication and depth, to create enduring product and service offerings. In order to compete and prosper, market participants will be given the space and opportunities to innovate and evolve. Consequently, this also means that they must step up and take on added responsibilities and greater accountability.
Achieving these desired outcomes calls for each and every stakeholder to embrace several key ingredients for success. High standards of care, diligence and governance must be prioritised across all products and market segments. Intermediaries and service providers will also need to integrate agility and flexibility into their work processes. This must be supported by effective management of risks, better capital and resource utilisation, as well as a greater emphasis on talent and innovative skillsets.
A corporate culture that values integrity and transparency will also serve to strengthen confidence in the market’s ability to deal with emerging challenges and risks. In addition, market stakeholders have to be prepared to adopt more socially conscious and purposeful mindsets as part of their philosophy and values, as well as their overall organisation DNA. Looking ahead, listed entities and other market participants will be expected to be ever more mindful of their wider impact on society, local communities and the economy. The hallmark of the capital market of the future will be that benefits are sustainable and accrue to the many.
12 SECURITIES COMMISSION MALAYSIA