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In addition, the introduction of the private retirement scheme (PRS) provided individuals with a private option to complement the public mandatory retirement scheme and longer-term savings flexibility. Since the inception of PRS in 2012, its AUM has grown by a CAGR of 71.5% from RM62.7 million in 2012 to RM4.7 billion in 2020.
The last decade saw the offering of more capital market services, including boutique fund managers, standalone derivatives trading and clearing intermediaries, as well as dual-licensed securities and derivatives dealers. As the demand for digital and online services grew, new intermediation models were facilitated in line with the SC’s digital agenda for the capital market, such as digital-only broker, digital investment management (DIM), recognised market operator (RMO) and digital asset exchange (DAX). In addition, e-services platforms were approved to widen the online distribution of capital market products. Industry incumbents also worked with regulators to digitise various aspects of the broking and fund management value chain6 to remain competitive. The pace of digitisation and innovation has accelerated to better cater to social distancing needs and movement control orders7 during the COVID-19 pandemic. All these efforts not only facilitated greater options and product innovation within the market but have further enhanced the investing experience.
1.2.4 CHAMPIONED GLOBAL ICM GROWTH AND INNOVATION
Malaysia continued to be a prominent global ICM hub and a leader in global sukuk outstanding and issuances in 2020. Shariah-compliant assets amounted to RM2.3 trillion as at end 2020, having grown from RM1.1 trillion in 2010. Malaysian sukuk outstanding more than tripled in size on the back of facilitative development policies. Islamic AUM meanwhile grew 2.7 times, underpinned by initiatives outlined in the SC’s Islamic Fund and Wealth Management Blueprint, which was launched in 2017.
Malaysia’s global position as an ICM thought leadership hub has strengthened. Throughout the decade, SC-led thought leadership events have brought together scholars, practitioners, regulators, intermediaries and investors to catalyse discussions ranging from the role of ICM in infrastructure and sustainable development to Islamic social finance and impact investing. Strategic platforms and forums like the SC-Oxford Centre for Islamic Studies (OCIS) roundtable, the Scholar-in-Residence programme and the SC- World Bank-International Organization of Securities Commissions (IOSCO) Asia Pacific Hub Conference, have helped to shape the growth of ICM globally. Capacity-building programmes conducted by the Securities Industry Development Corporation (SIDC), such as Shariah Professional Programmes for ICM and Islamic Capital Market Graduate Training Scheme, also helped to strengthen human capital development.
Innovation continues to be at the heart of the SC’s ICM strategy, with Malaysia pioneering various global ICM milestones. This includes the issuance of the world’s first green sukuk, ESG sukuk fund and IPO with waqf shares as well as a ground-breaking resolution by the SC’s Shariah Advisory Council (SAC) on the permissibility of investment and trade in digital assets on registered DAX. (Chart 10)
As part of ongoing efforts to modernise and promote efficiencies within the capital market, the SC established the Brokerage Industry Digitisation Group (BRIDGe) in August 2018 and the Fund Management Industry Digitisation Group (FMDG) in November 2019.
The movement control order is a series of national quarantine and cordon sanitaire measures implemented by the federal government of Malaysia in response to the COVID-19 pandemic in the country.
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CAPITAL MARKET MASTERPLAN 3
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