PETALING JAYA: Bursa Malaysia Bhd recorded a net profit of RM252.4 million for the financial year ended Dec 31, 2023 (FY23), an 11.4% increase from the RM226.6 million reported in FY22.
The increase is attributed to higher operating revenue by 1.3% to RM592.8 million from RM585.3 million in FY22. Meanwhile, total operating expenses saw a 0.6% marginal increase to RM294.5 million from RM292.7 million peviously.
The board of directors approved and declared a final dividend of 14 sen per share, amounting to about RM113.3 million, in addition to the interim dividend of 15 sen per share paid in August 2023. This brings the total dividend for the year to 29 sen per share, representing a payout ratio of 93% for FY23.
“Notwithstanding the challenging outlook, emerging markets and developing economies have outperformed advanced economies. Malaysia’s economy, in particular, remains resilient in 2023, with a projected GDP growth rate of close to 4%,” commented Bursa Malaysia chairman Tan Sri Abdul Wahid Omar.
In terms of capital market performance, he added the FBM KLCI emerged as Asean’s second-best performer, with a 5.7% increase in the second half of 2023, and closed the year at 1,454.7 points, a healthy rebound from the 1,376.7 points recorded in the first half of 2023.
Bursa Malaysia CEO Datuk Muhamad Umar Swift said, “Despite a slight 0.5% drop in the ADV to RM2.1 billion, it remained above the pre-pandemic level.
Notably, he added, both the total funds raised through initial public offerings (IPO) and the IPO market capitalisation exceeded the figures from the previous year.
In FY223, he said, the exchange raised RM3.6 billion from new listings compared with RM3.5 billion in FY22, bringing their IPO market capitalisation to RM13.6 billion, surpassing last year’s total of RM11.2 billion. These developments highlight the market’s capability to adapt and thrive, solidifying the exchange’s role as a viable platform for fundraising and investing needs.
The Securities Market registered trading revenue of RM266.6 million in FY2023 compared to RM263.5 million in FY2022, an increase of 1.2%, due to higher ADV traded for On-Market Trades (OMT) and Direct Business Trades (DBT). In the Derivatives Market, trading revenue fell by 7.8% to RM89.6 million from RM97.2 million in FY22, mainly due to lower collateral management fees earned, and fewer Crude Palm Oil Futures (FCPO) contract traded in FY23. However, conference fees and exhibitionrelated income increased significantly to RM7.3 million from RM2.1 million in FY22, driven by a substantial rise in the number of participants at the Palm and Lauric Oils Price Outlook Conference & Exhibition (POC).
As for the Islamic Market, BSAS trading revenue grew by 3.9% to RM17.1 million in FY2023, up from RM16.4 million in FY22. Meanwhile, non-trading revenue from data business recorded a notable rise to RM68 million in FY23, compared with RM60.8 million in the previous corresponding year. This was underpinned by the higher Securities and Derivatives market data revenue, as a result from the revision in fees at the beginning of the second quarter of 2023 and a higher number of subscribers in FY23. Other revenue streams that contributed to the non-trading revenue growth include member services & connectivity and depository services.
Muhamad Umar said, “The trading activity will continue to be influenced by ongoing global and local developments. As a Multi-Asset Exchange, our commitment is to focus on diversifying fundraising and trading opportunities for our valued stakeholders. This includes the recently launched Bursa Gold Dinar, MyBURSA portal and BURSA REACH, all aimed at enhancing investor access and experience. The introduction of the currency
futures contract, Mini USD/CNH Currency Futures and the Futures Trading Apprenticeship Programme further underscores our commitment to invigorate the Malaysian derivatives market. Additionally, our joint venture entity, BR Capital, has been established to assist small to mid-sized companies in their fundraising efforts, by providing them with new avenues for capital beyond the traditional wholesale markets.”
In line with Environmental, Social, and Governance (ESG) goals, he said. the exchange will continue to deliver product and service offerings, which include the launch of the ESG Reporting Platform to aid public listed companies in fulfilling their ESG reporting requirements, and the launch of the Centralised Sustainability Intelligence platform, to facilitate both listed and unlisted companies in assessing their carbon emissions impact and ESG data reporting in accordance with global standards.
In supporting Malaysian businesses to achieve net zero carbon emissions, Abdul Wahid said the Bursa Carbon Exchange will continue to expand its multi-environmental product range and engage in strategic collaborations with various stakeholders.
