Malaysian capital market posts record performance in 2012
KUALA LUMPUR: The Malaysian capital market rose by 16.4% to RM2.5 trillion in 2012 from RM2.1 trillion a year earlier despite challenging market conditions, Securities Commission Malaysia (SC) chairman Ranjit Ajit Singh said.
All market segments, including equity market capitalisation, debt securities outstanding, asset under management and Islamic capital market recorded double-digit growth of between 14.1% and 22.6%, he said.
At a press conference on the 2012 SC annual report here today, Ranjit said the Islamic capital market rose 22.6% to RM1.4 trillion with Malaysia maintaining its position as the leading sukuk market.
“The year 2012 was also a year of strong assessment outcomes in terms of market regulatory framework,” he said, adding that this achievement is the highest among countries that recently underwent the assessment.
He said last year sealed Malaysia’s ranking as the world’s biggest sukuk market, the fifth largest IPO destination globally and the fourth most active in Asia for corporate bond issuances.
Key indicators such as corporate bonds and the sukuk market exceeded the RM1 trillion mark for the first time and positioned Malaysia as the third largest bond market in Asia.
It was also a record year for IPOs with issuers raising a total of RM22.1 billion, increasing equity market capitalisation by 14.1 per cent to RM1.5 trillion, while the benchmark index FBM KLCI ended the year 2012 at a record high of 1,688.95.
Fund management posted a significant expansion of 19.2% in assets under management valued at RM505.1 billion, while net asset value of the unit trust industry rose to RM294.9 billion.
“Islamic assets under management accounted for about 16% of the industry’s total assets under management or RM79.6 billion,” Ranjit said.
He said the Islamic capital market, at RM1.4 trillion, has enjoyed greater internationalisation through wider participation of foreign sukuk issuers from Singapore, the UAE, Bahrain and Kazakhstan.
On supervisory and enforcement efforts, Ranjit said the SC filed seven criminal charges for insider trading while a company director was convicted on four charges for furnishing false information on a company’s unaudited financial results.
In addition, eight administrative sanctions were imposed against licensed intermediaries for improper business practices, while an investment bank was reprimanded for failure to carry out proper due diligence in a corporate exercise, he said.
Meanwhile, Ranjit said the Malaysian capital market’s set of standards in terms of regulatory and supervisory framework was accepted by the International Monetary Fund and the World Bank.
“The independent assessments acknowledge the strong regulatory regime in Malaysia, which has validated the SC’s approach to regulation that is approximately benchmarked to global standards,” he said.
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