Chairman of LFX Dato' Mohd Azlan Hashim said the opportunities offered by LFX to all global investors and companies are unlimited.
Mohd Azlan, who is also Executive Chairman of the Kuala Lumpur Stock Exchange was speaking in his keynote address after LFX was launched by Minister of Finance YB Tun Daim Zainuddin.
Mohd Azlan said, amongst the group of investors that could take benefit from LFX, include:
- Malaysian companies with international operations, LFX offers a practical and convenient means of funding their international operations through the listing of innovative products. A listing on the LFX also contributes to enhancing the liquidity of their investments for otherwise non-liquid investments.
- For countries in the Asia Pacific region, with either limited resources to set up an exchange or limited number of commercial enterprises to justify having an exchange, LFX offers these countries an efficient, cost effective access to the capital market. These countries should consider LFX as their own facility and utilise LFX their advantage.
- These opportunities are not only confined to countries in the Asia Pacific region and is open to all developing countries such as those in Africa, and other parts of Asia that can effectively use LFX.
- For international investors and companies, LFX offers an exchange facility that permits the trading of multi currency instruments, in an unrestricted fashion - unencumbered by any exchange or selective capital controls.
- For issuers and advisors, products will be allowed to be largely determined by issuers and their advisors. LFX will always be receptive to new ideas and instruments that the market requires.
- For the special requirements of Syariah based investors, LFX can cater for a wide range of products and instruments based on Syariah principles. This will enable the realisation of greater benefits from the launch of the International Islamic Financial Market.
"LFX will act as a vehicle to attract more funds and financial services providers into Labuan IOFC.
"In addition, being the only offshore exchange within the region, LFX would provide the impetus for Labuan to gain wider international recognition as an international offshore centre.
'Thus, the strong support of Labuan-based entities is crucial to the success of LFX," he said
Mohd Azlan added LFX is designed to be innovative, a trailblazer and therefore, its success should not be immediately expected.
"Markets, especially that which adopt new technologies and are based on the latest models, take time to be fully appreciated, to gain acceptance and to reach maturity," he said.
Comments, suggestions and feedback on LFX can be received at www. lfx.com.my. The LFX office in Labuan is on the 7th floor of the Labuan Financial Park, whilst the LFX office in Kuala Lumpur is on the 10th Floor, Exchange Square, Kuala Lumpur Stock Exchange.
