New Straits Times - - Business - DATUK N. RAJENDRAN

will be able to in­crease their com­pet­i­tive­ness, ex­pand their op­er­a­tions, in­te­grate into the in­ter­na­tional sup­ply chain and be­come global cham­pi­ons,” he said.

Com­pa­nies must push into the 4.0 In­dus­trial Rev­o­lu­tion and tap the po­ten­tial and not al­low them­selves be af­fected by the lack of fund­ing.

To Bursa Malaysia, the out­look for this year can­not be brighter with the po­ten­tial 300 com­pa­nies tap­ping the cap­i­tal mar­ket for more fund­ing.

Strong do­mes­tic in­sti­tu­tional funds, cou­pled with a vi­brant re­tail mar­ket and bench­marked against de­vel­oped mar­kets, will en­able com­pa­nies to raise cap­i­tal.

Bursa Malaysia chief com­mer­cial of­fi­cer Sel­varany Rasiah said the ini­tial pub­lic of­fer­ings were al­ways over­sub­scribed, hence com­pa­nies could be as­sured of a strong de­mand from the in­vest­ment side.

Apart from hav­ing some of the most at­trac­tive valu­a­tions in the re­gion, the lo­cal bourse is an at­trac­tive plat­form for rais­ing cap­i­tal and is sup­ported by fun­da­men­tals and reg­u­la­tory frame­work.

Bursa Malaysia is fi­nal­is­ing de­tails for the set­ting up of a new mar­ket for SMEs.

On this year’s per­for­mance, Sel­varany said so far six com­pa­nies had been listed on Bursa, of which three on the Main Mar­ket.

“Mar­ket cap­i­tal­i­sa­tion has ex­panded by more than RM5 bil­lion in the first four months. The Lotte Group’s (planned list­ing of its Malaysian petro­chem­i­cal arm) will add another RM20 bil­lion. We ex­pect more size­able com­pa­nies to come on board,” she said.

Mar­ket cap­i­tal­i­sa­tion was at RM600 mil­lion last year.

We hope more lo­cal firms, in­clud­ing SMEs, will be able to in­crease their com­pet­i­tive­ness, ex­pand op­er­a­tions, in­te­grate into the in­ter­na­tional sup­ply chain and be­come global cham­pi­ons.

in­fla­tion­ary pres­sure sta­bilises.

AmRe­search said the pres­sure on neg­a­tive re­turns could ease if Bank Ne­gara de­cided to raise OPR later this year by 25 ba­sis points. It also fore­sees neg­a­tive real re­turns for most of the year.

“The last time we saw a pro­longed pe­ri­ods of neg­a­tive real re­turns were Fe­bru­ary-Novem­ber 2011 and De­cem­ber 2013Au­gust 2014. In both pe­ri­ods, the OPR was raised by 25 ba­sis points.”

It is main­tain­ing its call for a 30 per cent chance of a 25 ba­sis points rate hike some­time in the fourth quar­ter based on the as­sump­tion that the United States Fed­eral Re­serve will raise its rates thrice this year. Rupa Damodaran

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