STAR PERFORMER
MALAYSIA’S capital market expanded by double digits to RM3.2 trillion last year, making it the fifth largest in Asia. The significant performance is due to strong economic growth, earnings recovery and positive foreign direct investments.
THE Malaysian capital market is now the fifthlargest in Asia, thanks to a 12.6 per cent expansion to RM3.2 trillion last year.
Describing the growth as significant, Securities Commission (SC) chairman Tan Sri Ranjit Ajit Singh said the market had seen double-digit expansions across all segments.
“This is a significant growth for Malaysia. At RM3.2 trillion, it is 2.4 times our gross domestic product (GDP).
“This was all achieved on the back of strong economic growth and continuation of earnings recovery. We did see a lot of companies using the capital market for fundraising. We also saw positive foreign direct investments last year,” said Ranjit at the SC Annual Report 2017 briefing, here, yesterday.
The local bond market grew 10.1 per cent to RM1.29 trillion from RM1.17 trillion in 2016, he said.
This helped Malaysia keep its position as the third-largest local currency bond market, in terms of percentage of GDP, in Asia, after Japan and South Korea, he added.
Ranjit believes that bonds and sukuk will continue to play a key role in fundraising activities this year.
The total capital raising through primary and secondary markets was expected to remain resilient at RM120 billion, he said.
Domestic fundraising is expected to be mainly driven by capital raising in the corporate bond and sukuk market for infrastructure financing as well as refinancing of bonds and sukuk.
The equity market capitalisation and Islamic capital market grew 14.4 and 11.9 per cent, respectively, last year.
Ranjit said at RM1.9 trillion, the Islamic capital market was now at almost 60 per cent of the overall capital market.
“The Islamic capital market maintains its leading position in Malaysia. It also maintains its leading position globally, with 38 per cent of global sukuk issuances.”
Ranjit is confident of the local capital market outlook this year.
“The continuation of global economic expansion is expected to have a positive influence on capital markets this year,” he added.