KUALA LUMPUR: The Securities Commission Malaysia (SC) expects between RM110 billion and RM120 billion in funds to be raised this year from initial public offerings (IPOs), the equity market and the issuance of corporate bonds and sukuk.
Chairman Datuk Syed Zaid Albar said he was optimistic of prospects for the year despite external headwinds and global economic uncertainties, including the ongoing trade negotiations between the United States and China.
He based his bullish outlook on “better” IPOs and the SC’s ongoing plans to further evolve the market this year.
“To ensure inclusive and sustainable growth of our economy moving forward, the capital market must be accessible to the full spectrum of issuers, investors and intermediaries. It must also be agile and evolve in response to changes in the economic landscape as well as user demands.
“Greater access and flexibility must, however, be accompanied by higher accountability. We will continue to raise standards of governance and conduct, both for issuers and intermediaries in the capital market,” he told a media briefing on the SC’s 2018 annual report yesterday.
Last year, the total capital market fundraising stood at RM114.6 billion, he said.
The alternative fundraising channels, namely venture capital, private equity, equity crowdfunding and peer-to-peer financing, raised RM808.4 million, illustrating the capital market’s ability to play a significant role in the funding needs of under-served issuers such as micro, small and medium enterprises, he said.
For this year, Syed Zaid said the SC would give focus, among others, on strengthening alternative financing avenues to meet funding needs of micro, small and mid-sized companies, as well as facilitating digital investment models to attract wider investor participation.
He said the commission would also expand and harness synergies between the Islamic capital market and sustainable finance to attract a wider range of issuers and investors.
In addition, it will review the entire primary market framework, including the approach to approving IPOs.
He said the SC would also improve investor experience by digitising the broking value chain and strengthening supervision and surveillance in areas of risk, particularly with the growing prominence of digital assets and trading strategies. — Bernama