KLSE Executive Chairman Dato' Mohd Azlan Hashim said that it is a simple yet often overlooked fact that markets exist by the grace of investors.
"Investors have choices and in this increasingly globalised investment environment, these choices span national boundaries. The fundamental principle for success- shared by all companies who enjoy the benefits of resilient and robust capital markets - is their commitment to quality.
"Quality cannot be allowed to deteriorate or wilt with age. Quality, at its broadest and most basic level, is the protection of investor's interests," he said in his keynote address at the Conference On Disclosure Based Regulation. The conference was jointly organised by the Malaysian Association of Certified Public Accountants (MACPA) and the Malaysian Institute of Corporate Governance (MICG).
On Disclosure Based Regulation (DBR), Mohd Azlan said the regulatory philosophy should foster investor confidence and be conducive to capital raising.
"Today, the forces of competition, globalisation and technology have come together to revolutionise the global economic landscape. Business is becoming global, capital flows are world-wide, markets are becoming borderless. "In facing such challenges, it is imperative that our competitive edge is maintained," he said.
Mohd Azlan added that with DBR, there exists a wonderful opportunity to enact a practical framework to ensure that the local market and Malaysian listed companies remain innovative, vibrant and competitive.
"We should make every effort to take full advantage of this opportunity," Mohd Azlan said.,p> In his keynote address Mohd Azlan also noted that the market cannot be "born into" the DBR as a matter of course. There is need to build an environment conducive to DBR where good corporate governance is widely practised with the market "buying-in" to DBR.
"More importantly, the market cannot merely sit back and expect better standards to come about automatically. The market itself must build better standards," he said.
Mohd Azlan said in order for DBR to achieve its fullest potential, there must be prevalent in the market place essential prerequisites for the successful implementation of the DBR including;- improving standards of disclosure; enhancing practice of corporate governance; Fostering understanding by participants and generate greater awareness by participants.
"Our securities market already operates in an environment which emphasises the continuous flow of material information to the marketplace with equal access to all.
"DBR will serve to enhance these attributes," he said.