VIBRANT CONNECTION
THE Securities Commission (SC) is confident the Malaysia-Singapore Connect can be established by year-end to link Bursa Malaysia and the Singapore Exchange. The initiative may also be expanded to include other Asean exchanges, says SC chairman Tan Sri Ran
REGULATORS from Malaysia and Singapore are ironing out the details and challenges towards the establishment of a stock market trading link between the two countries.
Securities Commission (SC) chairman Tan Sri Ranjit Ajit Singh is confident of finalising the Malaysia-Singapore Connect, which will link Bursa Malaysia and the Singapore Exchange (SGX), by year-end.
“We are, of course, currently working on the operational details, as well other myriad of issues towards the establishment of this link with our Singaporean counterpart.
“There are a number of things that we need to iron out, such as costs associated with the transactions, as well as the need to address post-trade settlement issues.
“That said, we are optimistic that we will be able to finalise and launch the link by year-end,” said Ranjit at a briefing during the World Capital Markets Symposium (WCMS) 2018, here, yesterday.
He added that there was a possibility that the initiative could be expanded to include the rest of the stock exchanges in Asean.
“The establishment of the trading link is an important step towards encouraging Asean investors to invest in Asean. The ease of accessibility for investors will contribute towards greater vibrancy in our markets. This pilot initiative can form the basis for future connectivity among Asean market.”
Prime Minister Datuk Seri Najib Razak yesterday announced the Malaysia-Singapore Connect that will provide investors from both countries access to more than 1,600 public listed companies with a market capitalisation of more than US$1.2 trillion(RM4.69 trillion).
In his keynote address at the WCMS, Najib said he and his Singapore counterpart Lee Hsien Loong had agreed that now was the ideal time to establish a market corridor connecting both stock exchanges.
Maybank Investment Bank Bhd (Maybank IB) chief executive officer Datuk John Chong said the trading link would increase the vibrancy of both capital markets.
“Malaysia and Singapore are the centre of Asean’s capital market activities.
“The synergy from the collaboration will not only benefit the two countries but also the whole region, and will set an important foundation for greater cooperation to follow.
“For Maybank IB, which is active in both markets, the trading link will enable us to serve our clients better and enhance our product offerings.
“We look forward to receiving more details on the exciting initiative,” said Chong.
Meanwhile, Najib launched the Institute of Capital Market Research Malaysia (ICMR) to conduct studies on thematic issues to provide innovative solutions to further augment growth in the capital markets.
The ICMR, the establishment of which was first announced in the 2017 Budget, aimed to develop bridging platforms for the sharing knowledge and ideas through a multi-stakeholder approach with policymakers, regulators, the academia and industry.
As such, the SC has aligned various strategic research partners, namely The Wharton School, University of Pennsylvania, the Nomura Institute of Capital Markets Research, as well as the Jeffrey Sachs Centre on Sustainable Development.