KUALA LUMPUR: Malaysia’s capital market has been vibrant in 2024 with Bursa Malaysia’s benchmark index crossing 1,600 points and the total value on the exchange reaching RM2 trillion, said Minister of Finance II Amir Hamzah Azizan.
More importantly, he added, Bursa’s progress has also gone quite well with 46 initial public offerings, as stated by Bursa Malaysia CEO Datuk Muhamad Umar Swift, and with more in the pipeline.
“What is key for us going forward is the transformative journey that Malaysia is undergoing, aligning the real economy with the ongoing capital market journey,” Amir Hamzah said during the Fireside Chat: Capital Markets in Malaysia – The Way Forward at the 63rd WFE General Assembly & Annual Meeting at the Mandarin Oriental Hotel, Kuala Lumpur, today.
He added that Malaysia is working to reinvent its economy by hybridising industries, creating wealth, and ensuring that wealth is better distributed across society.
“In that process, we aim to facilitate the growth of different engines that will power the economy forward,” he said.
Amir Hamzah stressed that the capital market’s role is to provide capital to businesses seeking growth, open up opportunities for various market segments, and accelerate economic growth for Malaysians.
As Malaysia assumes the chairmanship of Asean next year, Amir Hamzah said, it is committed to working with its Asean counterparts to strengthen and connect regional markets.
At the moment, he noted, the penetration of cross Asean trades is lower than what Malaysia anticipates or believes it can be.
“If you look at Asean, it comprises various countries at different stages of development. From this perspective, you could say that if we overcome the mental block of understanding that a connected Asean creates a bigger cake for everyone – allowing us to work together as one group rather than compete with each other, then the diverse opportunities within the region can be realised. I believe the future of Asean lies in this direction,” Amir Hamzah said.
He outlined key initiatives that Malaysia will champion under the finance track of next year’s Asean meetings, which includes creating mechanisms to facilitate trade between nations, streamlining payment systems across Asean countries, recognising Asean capital markets, improving connectivity between these markets, and enabling mutual recognition of IPOs across borders.
As the world addresses the climate change challenge, Amir Hamzah stressed, Asean must also focus on facilitating a just transition.
“Raising capital to support this transition and fostering sustainable economic growth are crucial priorities. This does not solely depend on capital markets. Global multilateral agencies also play a vital role in reducing costs to support the transition,“ he said.
