In the SC's 2018 Annual Report released today, its chairman, Datuk Syed Zaid Albar said this is due to the congruence of such ideals with the principles of Islamic finance, where Malaysia retains global competitive advantage.
“Among others, we will continue to broaden the Sustainable and Responsible Investment (SRI) sukuk framework and introduce Islamic SRI positive screening for equity offerings.
“Another area of focus would be the development of social enterprises via the waqf model, where sustainable returns can be generated from endowments and channelled towards financing socially-beneficial endeavours,” he said.
For 2019, he said the SC is committed to foster innovation and competitiveness within a sensible and proactive oversight regime, as well as, encourage greater openness and collaboration between the SC and other stakeholders in the economy.
He said the supply of capital, particularly to alternative financing avenues, would be augmented by efforts to grow Malaysia’s venture capital and private equity industry.
“To this end, our efforts will focus on diversifying sources of funding beyond government-backed funds while also encouraging investments at different stages of investee companies’ life cycle,” he said
He said to facilitate equity fundraising, it would also collaborate with intermediaries to infuse greater market perspectives into the initial public offering (IPO) process and improve time-to-market for proposals that comply with requisite investor protection criteria.
To enhance market vibrancy, the regulatory authority would support changes in the trading landscape by allowing for varied trading strategies, including greater use of derivatives.
Meanwhile, he said the overall capital market stood at RM3.1 trillion as at Dec 31, 2018, equivalent to 2.2 times the size of the domestic economy.
He said this comprised domestic bonds and sukuk outstanding, which rose to RM1.4 trillion and equity market capitalisation of RM1.7 trillion.
On the buy-side, he said the fund management industry with assets under management of RM743.6 billion continued to play a key role in savings intermediation while the capital market sustained its role in financing for the real economy, with total funds raised through bond, sukuk and equity issuances amounting to RM114.6 billion.
“While relatively nascent, alternative fundraising channels for micro, small and medium enterprises (MSMEs) such as equity crowdfunding (ECF) and peer-to-peer (P2P) financing gained traction, with RM261.5 million raised by 693 issuers to-date.
‘Despite the emerging competition, Malaysia remained a global leader in the Islamic capital market with RM1.9 trillion in Shariah-compliant equity and sukuk outstanding. Malaysia also continued to be the world’s largest sukuk market,” he added.