SC says capital market near-term prospects largely unaffected by GE

KUALA LUMPUR: The domestic capital market’s near-term prospects is expected to remain largely unaffected by the outcome of the 14th general election.

According to Securities Commission chairman Tan Sri Ranjit Ajit Singh, Malaysia’s capital market will continue to be driven by resilient market structure and sound economic fundamentals as uncertainties revolving the domestic political scene dissipate moving forward.

“We are highly encouraged by the fact that the country is going through the process of change in government peacefully. The market was generally calm as it reopens today amid some volatility and I think this reaffirms that there is a strong leadership in place, supported by the administration’s indication to introduce pro-business policies.

“We have a very resilient capital market at RM3.2 trillion in terms of market capitalisation. We also have a large pool of domestic liquidity in our capital market.

“Over the medium term, we remain confident on the ability of the capital market to continue facilitating significant fundraising activities and providing ample investment opportunities, in anticipation of positive impact of policies of the new administration,” Ranjit said on the sidelines of the two-day conference on Harnessing Islamic Finance for a Green Future, jointly-organised by the SC, the World Bank and the International Organisation of Securities Commissions Asia Pacific Hub Malaysia.

He said that SC is ready to provide a briefing on the capital market if asked by the new Pakatan Harapan government.

“If there is anything the Team of Eminent Persons or anyone else needs to be briefed on in respect of the capital market, we are more than happy to do so,” he said.