Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on January 13, 2017.

 

KUALA LUMPUR: The Securities Commission Malaysia (SC) expects companies to raise between RM90 billion and RM105 billion in capital in 2017, with about RM85 billion from the bond market.

“Last year, close to RM100 billion was raised through the capital market, with RM87 billion in corporate bond issuances and IPOs (initial public offerings) while the rest was secured through secondary fundraising,” said SC chairman Tan Sri Ranjit Ajit Singh.

Ranjit said the SC sees the global IPO markets picking up this year with the local IPO market following suit.

“Our estimates are around RM7 billion for the [Malaysian] IPO market this year, and we also anticipate a certain amount from the secondary markets,” he told reporters at the SC’s International Investment Fund Forum 2017 yesterday.

The forum was held in conjunction with the launch of Malaysia’s five-year Islamic Fund and Wealth Management Blueprint, the first of its kind in the world.

In his opening remarks, Ranjit highlighted that Malaysia is well placed to seize the growth potential of the Islamic fund and wealth management market.

“The blueprint represents Malaysia’s focused and concerted efforts in leveraging its well-established Islamic fund management industry to grow the wealth management segment.

“As part of holistic development of Malaysia’s Islamic markets and consistent with the Capital Market Masterplan 2, the blueprint will also drive greater internationalisation of the Islamic fund and wealth management industry through enhanced cross-border capabilities and connectivity,” he said.

He added that the blueprint will be operationalised through several work programmes on a phased approach over a five-year period.

“For the initial stage of implementation, the work programmes that have been identified include the formulation of a framework for issuance of syariah-compliant sustainable and responsible investment funds, the setting up of a global capacity building centre for Islamic capital market and the introduction of a digital investment services framework,” he said.

Malaysia has been widely recognised as the world leader in Islamic capital market with a market size of RM1.7 trillion, which has more than tripled over the last decade.

As the only country in the world with a framework for Islamic fund management companies, Malaysia now houses 20 full-fledged Islamic fund managers, including large international firms.

Combined with other fund management companies operating Islamic windows, Malaysia has RM132.4 billion worth of Islamic assets under management, which is among the largest in the world.

Malaysia is also a primary marketplace for global sukuk issuance, commanding 54% of global sukuk outstanding.

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