KUALA LUMPUR: The Securities Commission is confident that the Pakatan Harapan government will create positive impact on the economy.
Chairman Tan Sri Ranjit Ajit Singh said this will subsequently spill over to the local capital market.
"There is already a sense of optimism and calm as well as assurance that the strong leadership is in place with the right focus in terms of areas that need to be addressed," Ranjit told reporters on the sidelines of the SC-World Bank-International Organisation of Securities Commissions (IOSCO) Asia Pacific Conference 2018 today.
The conference themed "Harnessing Islamic Finance for a Green Future" gathered over 200 industry practitioners, policy makers and experts in Islamic finance and sustainable investment space to discuss key policy, regulatory and institutional elements needed to drive market adoption of Islamic finance.
Ranjit said Bursa Malaysia’s first opening today since the extended holiday due to the 14th General Election last week was rather calm after some initial volatility.
"This reaffirms a very strong leadership in place, with pro-business policies and strong sense of optimism for the market," he added.
Ranjit said the local stock exchange was fundamentally resilient at RM3.2 trillion, backed by strong intermediaries from financial institutions and funds management aspects.
On the meeting between the Council of Elders led by former finance minister Tun Daim Zainuddin and government-linked investment companies yesterday, Ranjit said the outcome was “very pro-business and pro-market, driven by responsible and experienced leadership”.
He added that the SC would brief the council on the capital market, if need be.
"The capital market is a significant component of the economy. Therefore, we are certainly happy to be able to brief on any aspect of the capital market if required.
"Our focus is to ensure the market remains stable with ability for the administration to pursue economic policy,” he said.
Ranjit added that the new administration had indicated many aspects of what it wanted to do with the economy.
Meanwhile, the World Bank's Global Knowledge and Research Hub in Malaysia acting country manager Richard Record said Malaysia had transitioned from being a recipient of the development finance to a contributor to the development agenda.
"Malaysia has been able to share its development experience, particularly on green sukuk and allowed many countries to help address climate change to use new financial instruments," he said.