‘Malaysia’s selection as host reflects capital market strength’

KUALA LUMPUR: Its selection to host the International Organisation of Securities Commissions (IOSCO) Asia-Pacific hub asserts the recognition of Malaysia’s leading role in building sound global markets.

Prime Minister Datuk Seri Najib Razak said it also reflected the strength and quality of Malaysia’s capital market and its regulatory architecture.

“I am delighted that Malaysia has been chosen to host IOSCO’s pioneering chapter in the AsiaPacific region,” he said in his keynote address before launching the hub at the Securities Commission here yesterday.

The IOSCO Asia Pacific hub at the Securities Commission Malaysia building here, will be the organisation’s first presence outside of its headquarters in Madrid, Spain.

Najib said the hub’s establishment was timely and needed, as the region was a new major player in the emerging global order.

“Today, Asia-Pacific countries contribute 30 per cent of global gross domestic product (GDP) — almost double what it was in 1970 — and together, they account for 47 per cent of the world’s manufacturing output.

“It has been estimated that by 2030, the region will account for 66 per cent of the world’s middle class and represent 59 per cent of its global middle class consumption,” he added.

He said although the region’s prospects were good, advanced and emerging economies must come to terms with the unique opportunities and challenges of the current global environment.

“Political and structural shifts in large economies have given rise to new opportunities, but exposed new risks — against a backdrop of uncertainty in commodity prices as well as increasingly ageing populations.

“There is a need to ensure that economies are able to achieve sustainable and equitable development, while also equipping them with sufficient resilience to withstand and adapt to internal and external volatility,” he said.

Economies also needed to differentiate themselves, Najib urged, as there was intense competition for capital and investments in a challenging global environment.

“Well-diversified economy supported by a strong capital market, stable infrastructure and sound institutions, such as ours in Malaysia, provides distinct competitive edge, certainty and stability.

“This continues to underscore the agenda and the work of our SC, which has laid the regulatory foundations to ensure market development is relevant to businesses and investors,” he said.

Present were SC Malaysia chairman Tan Sri Ranjit Ajit Singh and IOSCO board chairman Ashley Alder.