KUALA LUMPUR, March 27 — The Securities Commission (SC) expects Malaysia’s capital market to stabilise in the second half of 2023 (2H 2023) on the back of good fundamental and political stability.
SC chairman Datuk Seri Dr Awang Adek Hussin said foreign investors had seen many plus factors in the country’s capital market, including political stability, good fundamentals and the fact that the market was still undervalued.
“We think political stability has returned, much better than before. Although politicking has not subsided, it has generally become more stable.
“The majority (in the parliament is better) with the government being more permanent than before,” he said during a press conference on the release of SC’s Annual Report 2022 today.
Awang Adek cautioned that some factors are holding back the market, especially foreign investments, due to the current uncertainties in the global economy.
“The global scenarios include several things now, such as banking failures, the issue with Credit Suisse, the war in Ukraine and hotspots in other regions as well. So these are going to be important (indicators for investors),” he added.
Meanwhile, Awang Adek noted concerns related to the United States bank, Silicon Valley Bank (SVB) has no direct impact on local companies.
“No one (locally) has any holdings in SVB in terms of shareholding or loans, so there is no direct involvement.
“In fact, we are also much less exposed concerning Credit Suisse since we have one player that has AT1 bonds, with an amount of less than RM200 million, which is still considered small,” he added.
In the meantime, Awang Adek highlighted that the commission would focus on regulatory reforms, enhancing the fundraising ecosystem, advancing the environment, social and governance (ESG) agenda, facilitating technology adoption and improving corporate governance in 2023.
“The SC will also prioritise sustainability and talent development to ensure the capital market continues contributing to broader social and environmental goals.
“As we look towards the future, the SC remains committed to pursuing initiatives that will further strengthen Malaysia’s capital market and enhance its role as a catalyst for economic growth and development,” he added.