Kuala Lumpur Stock Exchange (KLSE) Executive Chairman Dato' Mohd Azlan Hashim said driven by a combination of steady fundamentals and a stable government, the Malaysian capital market and securities industry continued on its way to fulfill its role as an efficient, cost effective mechanism for capital mobilisation and investment.
"This strong network built between the market and government is not only beneficial in withstanding the challenges of the moment. In the longer term, the commitment and support of government for the market through policies and initiatives will further enhance investor confidence," he said.
Mohd Azlan was speaking at the first official visit by Deputy Prime Minister of Malaysia, YAB Dato' Seri Abdullah Ahmad Badawi to the Kuala Lumpur Stock Exchange.
Mohd Azlan said in the specific area of corporate governance and transparency, it is the co-ordinated, continuing effort by the government and the regulators, including KLSE, that has supported the market in clearing much of the misconception on the level of corporate governance.
"The government has been highly supportive of pro-growth and pro-market policies, evident in the many measures and initiatives undertaken - in the financial sector, in the capital market and the securities industry.
"The consultative approach taken by the government, including the Ministry of Finance - has ensured that industry and market recommendations are taken into account in formulating the objectives and strategies of significant industry pronouncements such as the Capital Market Masterplan.
"In charting strategic directions for moving forward, the Capital Market Masterplan, more than just a plan, has proven to be a practical blueprint judging from the number of key objectives that have been achieved since its implementation," Mohd Azlan added.
Among the achievements in the Capital Market Masterplan accomplished to date include the consolidation of all Malaysian Exchanges by 2002 and its demutualisation.
Mohd Azlan said efforts to demutualise the exchange to facilitate the development of a competitive, flexible, for profit structure, is well underway.
" Strategically, demutualisation would project the country and its capital market as forward looking and able to adapt to changes to keep pace with market demands and needs, and where possible even lead the way."
"With demutualisation, there will be significant benefits to the economy, capital market and the exchange," Mohd Azlan added.
Mohd Azlan said in consolidating the strength of the Malaysian capital market in an increasingly international playing field, what is key is the continued open-mindedness and receptiveness to change - to ensure the Malaysian markets' continued role as an important component for national development.
"Whilst so much has been done to restore investor confidence both domestic and international as evidenced in the recovery of market volume and value, the KLSE Group will continue to pursue initiatives for the exchange and the industry to enhance our market.
"We will continue to promote the Malaysian market as the investment destination of choice to both domestic and international investors."
"We will also take the necessary measures to ensure that our market remains relevant and attractive to all stakeholders, and to better serve the nation's economic development objectives," Mohd Azlan said.
