‘Capital markets should facilitate regional growth’
KUALA LUMPUR: Asean is the world’s sixth largest economy, with capital markets worth US$3.7 trillion (RM15.65 trillion), said Securities Commission chairman Tan Sri Ranjit Ajit Singh.
Ranjit, who chaired the inaugural Asean Capital Markets Forum (ACMF) here yesterday, said Asean’s capital markets had seen strong growth.
“Collectively, Asean is ranked as the ninth largest stock market in the world, with a total savings pool of about US$800 billion (RM3.4 trillion). Asean is also expected to grow by 5.2 per cent next year, and is anticipated to become the fourth largest economy in the world by 2050,” he added.
Ranjit said the forecast was supported by Asean’s rapid urbanisation and population growth.
“Asean has a large savings pool, which should be deployed towards funding the growth of the region.
“There is already a huge potential for greater intra-regional investments in equity and investment funds,” he said.
Ranjit said about 18.5 per cent of Asean foreign direct investments (FDI) were derived from within the region.
“However, investors must be provided with channels to make such investments with the lowest friction possible,” he said.
Ranjit also stressed that Asean should facilitate foreign investments into its markets to supplement the funds available in the region as well as to diversify funding sources, while also optimising the cost of capital.
“Asean capital market regulators have come together at the ACMF to drive the connectivity of the region’s capital markets, both internally and externally, so as to achieve continued and sustained growth,” he said.
The inaugural ACMF is aimed at showcasing the opportunities available in Asean as well as facilitate discussions amongst participants, explore ideas and network to develop prospects.
Themed at strengthening Asean capital market connectivity, the conference welcomed over 300 participants, representing issuers, investors, intermediaries, regulators and experts from institutions like the Asian Development Bank, Asian Infrastructure Investment Bank and World Bank.
The topics discussed during the panel sessions include growth and opportunities in the region, including infrastructure and green financing, corporate governance and changing market dynamics in the age of digitisation.