At the exchange, we have been focusing on efforts to boost the quality of our public-listed companies and also encourage diversification of products in our capital market. Within the increasingly challenging economic climate, the Government’s recently announced National Budget 2006 has successfully created further opportunities for optimizing growth levers in the capital market.
On the quality of public-listed companies and reducing cost of business
One of the areas given larger focus in the National budget 2006 has been the upgrading of quality of our public-listed companies through mergers and acquisitions, reductions in costs of doing business and faster time-to-market for companies seeking to list on Bursa Malaysia. In addition, the move to make audit fees tax deductible should also encourage improved disclosure on financial statements, in particular audited accounts, by companies.
These measures should be good news for investors both foreign and local alike, who have been pushing for greater accountability and more aggressive returns from our capital market. Steps to encourage mergers and acquisitions for example, should provide a boost to the market as investors seek upside opportunities through the enhanced liquidity and expanded capital bases of companies.
In addition, the rub-on effect of upgrading the quality of our listed companies will also enhance the overall competitiveness of our capital market among its regional competitors.
On encouraging growth of new capital market products
Steps announced to encourage the further growth of REITs and bonds also augur well for the continued growth of these two categories of products. This should also be good news for investors, particularly those seeking lower-risk investment instruments given the current economic climate.
