SGX MSCI Malaysia Index Futures Takes-Off In February 2015

• The Singapore Exchange (SGX) extends its footprint in the ASEAN economic zone – an area with more than 600 million people.
• With launch of SGX MSCI Malaysia Index futures, SGX’s derivatives product suite will cover half of the countries in Southeast Asia.
• Denominated in US dollar, the SGX MSCI Malaysia Index futures contract will allow investors to hedge against equity volatility and currency fluctuations.

Come 9 February 2015, the Singapore Exchange (SGX) will expand its Southeast Asian equity derivatives suite with the introduction of the SGX MSCI Malaysia Index Futures contract, which will track the MSCI Malaysia Index^SM, a broad based barometer of Malaysia equities covering 85% of total listed Malaysian market capitalisation. The Association of Southeast Asian Nations (ASEAN), consisting of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, is ranked as the seventh largest economy in the World. Investors seeking exposure to the region’s growth can tap on SGX’s suite of index products to access the major growth engines of Indonesia, Philippines, Singapore, Thailand and Malaysia (collectively known as ASEAN-5 economies).

According to recent World Economy Outlook October 2014 by International Monetary Fund (IMF), the ASEAN-5 economies are expected to grow steadily over the next 2 years. As the economy of the Southeast Asia region grows, the region is expected to occupy a larger weightage in global benchmark indices and the need for more efficient access and risk management instruments will increase in tandem.

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