KUALA LUMPUR: The Malaysian capital market grew to RM2.76 trillion and remains resilient amid global uncertainties, revealed the Securities Commission (SC) in its annual report released today.
The growth, which is equivalent to 2.6 times the country's economy, continued to be an important source of financing with RM9.19 billion raised through initial public offerings and private debt securities (PDS).
"The capital raising exceeded RM 90 billion for the third consecutive year, signalling the capital market's deepened capacity to meet Malaysia's real economic financing needs.
"Malaysia has affirmed its global mark in Islamic capital market, growing 12 per cent per annum on average for the last five years to RM1.59 trillion, making up 58 per cent of the total capital market.
"Fund management continued to be the fastest growing market segment with assets under management (AUM) surpassing the RM600 billion milestone to reach RM630 billion (7.1 per cent) by year-end," it said.
The growth was mainly driven by the expansion of channels for managed investments with net asset value of the unit trust industry growing to RM343 billion. Private retirement schemes is also poised to become an area of future growth in the investment management industry.
"Moving forward, SC will be undertaking a review of primary market regulations regarding capital-raising, disclosure and retail fund approvals.
"Further initiatives to be progressively implemented this year include shortening the approval turnaround time for funds, Fund Disclosure Guide release and the issuance of new categories of licenses in dealing in securities for new business structures leveraging on technology."