Capital market worth RM3.1tril in 2018

KUALA LUMPUR: Malaysia’s capital market stood at RM3.1 trillion last year, said the Securities Commission’s (SC) annual report yesterday.

Chairman Datuk Syed Zaid Albar said at RM3.1 trillion, the overall capital market was equivalent to 2.2 times the domestic economy.

“The capital market comprised domestic bonds and sukuk outstanding, which rose to RM1.4 trillion, and equity market capitalisation of RM1.7 trillion.

“The fund management industry, with assets under management of RM743.6 billion, continued to play a key role in savings intermediation.”

However, given the challenging global environment and domestic policy reforms, the capital market witnessed a more moderate level of fundraising activities last year, with total funds raised amounting to RM114.6 billion.

Total corporate bond and sukuk issuances last year stood at RM105.4 billion, exceeding the five-year average of RM97.7 billion, with new issuances mainly in utilities and financial services.

Another RM9.2 billion worth of bonds were raised via the equity market.

In line with Malaysia’s standing as the premier global Islamic financial hub, sukuk made up 68.9 per cent of total issuances last year.

“Despite emerging competition, Malaysia remained a global leader in the Islamic capital market with RM1.9 trillion in syariahcompliant equity and sukuk outstanding,” said Syed Zaid.

He expects the economy to remain on a steady growth path this year, backed by domestic private sector activities.

“Growth will be underpinned by sustained manufacturing activities and resilient services sector expansion, especially in wholesale and retail trade sub-sectors.”

He said despite the challenges, Malaysia was on track to becoming a high-income country in the coming decade.

The outlook for the domestic capital market this year will continue to be influenced by key global developments.