Chief Executive Officer of Bursa Malaysia, Yusli Mohamed Yusoff said that the budget is expected to have a significant positive impact on the investment environment in Malaysia. Budget 2005 should also improve the competitiveness of the Malaysian economy and enhance private sector initiatives.
"The proposal for one stockbroking company (SBC) that merge with one other SBC to be able to open four branch offices will expand the network of brokers, services and access to the investing public.
"The Government’s efforts towards liberalisation of the capital market for example allowing foreign stockbrokers, foreign futures brokers and global fund managers to operate in Malaysia is indeed positive in selling Malaysia as an investment destination globally and raising standards of the services rendered by intermediaries.
"Besides encouraging more foreign direct investments, the liberalisation efforts should result in a more efficient and liquid market and expansion of value added services which will benefit investors, issuers and intermediaries.
Yusli noted that the proposal to allow the Employees Provident Fund (EPF) to increase the size of its funds placed with fund management companies will also help improve market liquidity.
"The provision to allow 100% foreign ownership in Venture Capital companies will promote innovation and expand new businesses especially technology and high growth companies. We can expect more entrants into the MESDAQ Market of Bursa, adding to the depth of investment options available.
"Bursa will give it’s fullest support to the authorities to expedite the implementation of the proposals contained in the Budget to achieve the desired results," Yusli said.
