Bond market’s CAGR at 12.1pc since 1993

KUALA LUMPUR: The bond market had recorded a compound annual growth rate (CAGR) of 12.1 per cent a year since 1993 to account for 45.3 per cent of the capital market last year, according to the Securities Commission’s (SC) annual report.

SC data also showed Malaysia was able to diversify its marketbased funding avenues by developing the Islamic capital market, particularly sukuk.

The Islamic capital market had a CAGR of 10.9 per cent per year, growing from RM294 billion in 2000 to RM1.9 trillion in syariahcompliant equity and sukuk outstanding last year.

SC said the growth of the country’s capital market had not been just in terms of size but also in the progress reflected in the International Monetary Fund’s (IMF) index of financial development for Malaysia.

The IMF’s measurement shows that Malaysia’s overall financial sector development had improved significantly between 1993 and 2016.

In terms of international comparison, Malaysia has achieved commendable performance overall and is ahead of emerging market peers and in some aspects, advanced markets.

To ensure that the capital market continues to provide financing for the needs of not only larger businesses but also smaller firms, the SC has also looked into alternative market-based financing avenues, such as equity crowdfunding and peer-to-peer financing.