KUALA LUMPUR: Public listed companies (PLCs) need to step up on in vestor engagement and communicate effectively and regularly to provide visibility and insight to potential investors.
Bursa Malaysia Bhd chief executive officer Datuk Muhamad Umar Swift said the interconnected landscape today gives investors choices beyond local offerings, opening doors into global markets.
"It is imperative that Malaysian PLCs step up and engage with investors, especially foreign ones, but also local institutional and retail investors locally."Investors that seek stability in returns will favour companies with good governance records and a track record of solid earnings with growth potential. "In this, PLCs must optimise the value of investor relations (IR) to promote their attractiveness as viable investments, especially during periods of uncertainty or lacklustre performance," he said.
Bursa Malaysia today launched the IR4U programme, a comprehensive programme designed to support and enhance the standards and capabilities of IR practices, to raise the visibility and investability of Malaysian listed companies, to foreign and local investors.
The programme complements the exchange's existing IR initiatives such as the Investor Relations & Public Relations Programme, the PLC Transformation Programme, specifically through Guidebook Book 3 "Strengthening Stakeholder Management & Investor Relations"; and the Bursa Research Incentive Scheme.
These initiatives are part of Bursa Malaysia's broader efforts to enhance the profile of listed companies, and invigorate the equities market.
"A strong IR function is essential for the health and development of our capital market as a whole. "The IR4U programme will provide listed companies with the tools and resources they need to effectively communicate their value proposition to investors, and to build strong relationships with the investing community. "By helping PLCs become ready and adept at engaging investors, this can in turn raise confidence and appreciation for the quality offerings on our market," said Muhamad Umar.
The IR4U Programme encompasses the IR4U Portal, a comprehensive online resource to serve as a centralised hub which houses webinars, articles, and guidebooks covering the latest trends in the IR space, as well as various aspects of effective stakeholder management and IR relevant to PLCs and IR practitioners.
He added IR serves as a critical bridge between the company and the investment community as it plays an important role in influencing investment decisions, highlighting the company's investability, shaping market perception, and ultimately driving long-term value creation.
Muhammad Umar said that in tandem with the shift of more holistic and sophisticated considerations by investors, IR officers now must have a broader ability to narrate and communicate beyond the confines of financial reporting and high-level strategies.
"Their knowledge must also comprise understanding of best practices and concerns encompassing both the financial and non-financial standpoint, to help them present data in a way that not only draws the attention of investors but also speaks to their beliefs and values."Against this backdrop, companies need to be clear and transparent about their values and beliefs, and more importantly, convey them in an honest and consistent manner, to garner analysts and investors interest, who would comprehend the potential and plans of the business," added Muhamad Umar.