KLSE Executive Chairman Dato' Mohd Azlan Hashim said there is a need to continually improve and enhance efficiency and competitiveness in terms of service and facilities offered for issuers and investors.
"There is a need to proactively attract issuers to come to our market for capital raising, and to meet their requirements. This is the challenge for KLSEe to add breadth and depth to the market.
"As for investors, they have become increasingly global in the allocation of their portfolio investments. There is a need to continually enhance the breadth and depth of products and offerings, to offer greater choice to meet their increasing requirements," he said.
Mohd Azlan was speaking during his presentation 'The Present State of the Securities Industry' at the Malaysian Capital Market Summit 2002.
Among the series of measures KLSE are reviewing include:
- expanding the listing facilities to foreign companies in a phased manner
- offering reduced board lots to make securities more affordable to more investors, thus improving liquidity
- offering trading hours in line with international practice, whilst allowing more time for dissemination of corporate announcements by public listed companies
- introducing measures to faciliate full on-line trading that is, to allow orders from investors to be routed electronically via a stockbroking company to the exchange - without the need for manual intervention
At the Malaysian Capital Market Summit this, guest-of-honour Dato' Mustapa Mohamed, Executive Director of the National Economic Action Council also launched the KLSE special cover edition of 'Malaysia: Asian Pioneer' - a joint publication by KLSE and Euromoney Books. 'Malaysia: Asian Pioneer' is an essential guide for direct or indirect foreign investors. The publication presents an in-depth analysis of key changes that have taken place in Malaysia, with comprehensive reports on Malaysia's social, political and economic structures, including post crisis economic reform and recovery, infrastructure, financial systems, the capital markets, portfolio investment, direct investment, with overviews of the legal, regulatory, tax and accounting systems. "Malaysia : Asian Pioneer is an excellent good guide for anyone seeking investment opportunities, whilst providing substantiation for those already considering Malaysia as an investment destination," Mohd Azlan said.
Speaking of the present state of the securities industry,in his presentation Mohd Azlan said exchanges make a vital contribution to the world economy-in terms of efficient mobilisation of cash and promotion of cross border and global investments.
"The World Federation of Exchanges (WFE) in which KLSE is a member, recorded growth in the market capitalisation of its member exchanges from USD9.4 trillion to USD 36.3 thrillion in the span of eleven years from 1990 to 2001. This is very significant -as it exemplifies the successful role that the exchange industry plays in facilitating efficient and cost effective mobilisation of capital worldwide," Mohd Azlan said.
Mohd Azlan added whilst there are clearly changes in market needs and requirements, what is constant and unwavering is KLSE's commitment to industry and market.
"In performing its obligations to promote the growth of the Malaysian capital market, KLSE has always been mindful of the interests of the investment community, market intermediaries, listed issuers, investors as well as the nation as the exchange aligns its corporate strategies with national economic policies," Mohd Azlan said.
Mohd Azlan said one of the most significant developments that KLSE is currently embarking on is the demutualisation of the exchange.
"Demutualisation is about converting the legal status of KLSE from a company limited by guarantee to a company with shares and shareholders. However, this is not only in form but in substance too.
"Demutualisation is the means to the end objective to be able to compete effectively on a global basis, attracting investors and issuers in enhancing liquidity and velocity and about being able to seize opportunities and respond to changing needs more swiftly.
"It also facilitates the development of linkages and alliances which are aimed at enhancing liquidity in the market," Mohd Azlan said.
