Kuala Lumpur, March 10 - The Malaysian capital market grew to RM2.84 trillion in 2016 with total capital raised amounting to RM98.5 billion, according to Securities Commission Malaysia (SC) in conjunction with the release of its annual report.
“Despite global uncertainties and episodes of pronounced volatility affecting markets, the Malaysian capital market remained resilient with orderly market conditions. The market recorded growth across several market segments with favourable investor interest and provided sustainable long term financing for issuers,” said Tan Sri Ranjit Ajit Singh, Chairman, Securities Commission Malaysia.
Tan Sri Ranjit also highlighted that the outlook for the capital market in 2017 reflects increased optimism, underpinned by renewed interest in emerging markets and sustained domestic GDP growth expectations.
“We expect higher levels of fundraising in 2017, with current estimates of between RM102 to RM105 billion while at present, the size of the capital market has also increased to RM2.97 trillion,” he added.
Capital Market in 2016
In 2016, RM86.7 billion was raised through the primary market, with corporate sukuk and bond issuances of RM85.7 billion and new equity listings of RM1.0 billion. In addition, RM11.8 billion was raised through the secondary equity market.
The bond market grew to RM1.17 trillion, while equity market capitalisation ended the year at RM1.67 trillion.
The fund management industry continued its upward trajectory, with assets under management (AUM) growing 4.3% from RM667.9 billion in 2015 to RM696.3 billion last year. Unit trust funds maintained overall net sales over redemption of RM26.0 billion, registering an increase of 3.4% to reach RM358.5 billion in net asset value (NAV).
Size of the Islamic capital market totaled RM1.69 trillion, representing 60% of the domestic capital market. Corporate sukuk outstanding increased by 8.9% to RM393.5 billion, while corporate sukuk issuances represented 75.7% of total corporate sukuk and bond issuances. Islamic fund management grew 13% to RM149.6 billion in AUM, primarily driven by expansion of Islamic unit trust funds.
Private Retirement Schemes (PRS) registered an NAV of RM1.5 billion and saw increase in total membership to 221,000 individuals.
In 2017, the SC will continue to develop and strengthen the positioning of key market segments while reinforcing market conduct and governance. Key initiatives include:
▪ Operationalisation of Islamic Fund and Wealth Management Blueprint, including issuing framework for SRI investment funds and setting up global capacity building centre for Islamic capital market
▪ Issuance of Digital Investment Management Framework
▪ Implementation of key recommendations to drive growth for ETF, mid-cap PLCs and VC/PE segments
▪ Introduction of revised Malaysian Code on Corporate Governance and establishment of Institute of Corporate Directors Malaysia
▪ Issuance of revised Principal Adviser Guidelines and new Licensing and Conduct Handbook
▪ Talent development and capacity building through the implementation of Capital Market Professional Qualification (CMPQ) programme