Third capital market masterplan

Introduction
Key development thrusts
Key regulatory thrusts

Introduction

On 21 September 2021, the Securities Commission Malaysia (SC) launched the third capital market masterplan (CMP3), which will serve as a strategic framework for the growth of the capital market in Malaysia over the next five years and aims at ensuring that the capital market achieves the following desired outcomes:

• growing in relevance with the upgrade of the economy and its stakeholders;

• showing efficient capital mobilisation, accompanied by an evolved regulatory approach; and

• becoming diversified, competitive and differentiated in order to create value for diverse participants.

Pursuant to the CMP3, to achieve the desired outcomes, the strategic initiatives will be guided by six key development and regulatory thrusts/priorities over the next five years.

Key development thrusts

The three key development thrusts aim to facilitate a capital market that:

• catalyses competitive growth with greater fundraising efficiency for companies across their business lifecycle, enabled by competitive markets and intermediation;
• empowers investors for a better future with accessible and quality investment advice and greater diversity for emerging needs through a digitally inclusive ecosystem; and
• shapes:
  • a stakeholder economy with sustainable and responsible investment;
  • an Islamic capital market with effective capital mobilisation through sustainable and responsible investments; and
  • Islamic capital market solutions for sustainable, responsible and stakeholder-oriented businesses.

Key regulatory thrusts

In conjunction with the above, the SC has also set out three key regulatory thrusts to enable a regulatory approach that:

• embeds shared accountability in the capital market to promote responsible businesses, industry self-regulation and investor advocacy, underpinned by principles-based regulations;
• prioritises efficiency and outcomes in protecting investor vulnerabilities, with a fit-for-purpose regulatory architecture, as well as an effective supervisory and enforcement approach; and
• embraces the digital age with the industry, as it navigates through forward-looking regulatory technology and emerging technology risks, while enhancing the SC's digital capabilities.

For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.