SC: Cap­i­tal mar­ket to ben­e­fit from Bud­get

> In­tro­duc­tion of Small and Mid-Cap PLC re­search scheme will help pro­mote more liq­uid­ity, trad­ing vi­brancy in this sec­tor

The Sun (Malaysia) - - SUNBIZ -

PETAL­ING JAYA: Se­cu­ri­ties Com­mis­sion Malaysia (SC) yes­ter­day said mea­sures an­nounced in Bud­get 2017 will fur­ther de­velop the cap­i­tal mar­ket.

It said in a state­ment yes­ter­day, the in­tro­duc­tion of a Small and Mid-Cap Pub­lic-listed Com­pany (PLC) Re­search Scheme will help pro­mote more liq­uid­ity and trad­ing vi­brancy in this sec­tor. SC and Bursa Malaysia will ini­ti­ate and op­er­a­tionalise the ded­i­cated re­search scheme to pro­vide in­de­pen­dent an­a­lyst cov­er­age on small and mid-cap com­pa­nies.

In ad­di­tion, a RM3 bil­lion al­lo­ca­tion from gov­ern­mentlinked in­vest­ment com­pa­nies (GLICs) will cre­ate a more vi­brant and di­verse pool of in­vest­ment man­agers in the small and mid-cap seg­ment, and al­lo­ca­tions will be made to ex­ter­nal fund man­agers with a spe­cific man­date to be in­vested en­tirely in this seg­ment.

These ef­forts are ex­pected to re­sult in in­creased in­ter­est from a wider cross sec­tion of in­vestors, en­hance di­ver­sity of in­vest­ment strate­gies in the mar­ket, and cre­ate bet­ter value recog­ni­tion of small and mid-cap com­pa­nies. A work­ing group com­pris­ing the in­dus­try, SC and Bursa Malaysia will op­er­a­tionalise these ini­tia­tives.

On pri­vate re­tire­ment schemes (PRS), the ad­di­tional al­lo­ca­tion of RM165 mil­lion for the PRS Youth Scheme (aged be­tween 20 and 30 years) demon­strates the govern­ment’s con­tin­ued sup­port and strong de­sire to de­velop PRS as a vol­un­tary third pil­lar of Malaysia’s re­tire­ment sys­tem. Un­der the en­hanced in­cen­tive, the govern­ment’s co­con­tri­bu­tion will be in­creased on a 1-to-1 match­ing ba­sis. Specif­i­cally, the govern­ment will match RM1,000 ac­cu­mu­lated sav­ings in youths’ ac­counts with RM1,000 govern­ment co-con­tri­bu­tion. This will at­tract more Malaysian youths to par­tic­i­pate early in PRS and mo­ti­vate re­tire­ment sav­ing be­hav­iour from a young age. PRS providers should take ad­van­tage of this op­por­tu­nity to pro­mote PRS to the youth seg­ment while em­ploy­ers should cap­i­talise on this in­cen­tive to pack­age PRS as part of their em­ploy­ment ben­e­fits.

The es­tab­lish­ment of the Cap­i­tal Mar­ket Re­search In­sti­tute is de­signed to be the cen­tre for prod­uct de­vel­op­ment, mar­ket in­no­va­tion ideas and to re­search into is­sues and ar­eas that will fur­ther grow and de­velop the cap­i­tal mar­ket. It will also be a repos­i­tory of rel­e­vant data and in­for­ma­tion on cap­i­tal mar­ket statis­tics. Given the over­all size of the cap­i­tal mar­ket, which now stands at RM2.9 tril­lion, the es­tab­lish­ment of a ded­i­cated re­search in­sti­tute will help bring to­gether the best lo­cal and global ex­perts from academia, in­dus­try and pol­icy mak­ing to col­lab­o­rate on ways to fur­ther deepen the role of the cap­i­tal mar­ket in eco­nomic growth.

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