The capital market grew 3% to RM3.5 trillion from 2020, the Securities Commission said at the launch of its 2021 Annual Report.
It said that the total funds raised via the equity and corporate bond markets amounted to RM130.9 billion, above the five-year pre-pandemic average of RM121.4 billion. Alternative financing grew by 149% in 2021, setting a new record.
Equity crowdfunding (ECF) and peer-to-peer (P2P) financing continued to gain traction, raising RM1.4 billion for the Micro, Small, and Medium Enterprises (MSMEs) (2020: RM640 million). Meanwhile, new venture capital (VC) and private equity (PE) investments rose to RM1.1 billion (2020: RM333.9 million).
Overall AUM grew to RM951.1 billion from RM905.5 billion in 2020, reflecting increases in most sources of clients’ funds under management. Net asset value (NAV) of unit trust funds, the largest contributor to AUM, rose to RM526.9 billion in 2021 (2020: RM519.5 billion).
Speaking to reporters at a virtual media conference, SC chairman Datuk Syed Zaid Albar said, “The Malaysian capital market remained resilient in the face of renewed market uncertainties last year. In 2021, the SC directed its efforts to ensure regulatory agility, promote sustainable development and define its priorities for the next five years.
“With our focus firmly on a post-pandemic future, the SC’s priorities in 2022 aim to shift the capital market to a relevant, efficient, diversified and inclusive ecosystem, allowing Malaysia’s national growth pillars to achieve our ambitions in areas such as digital, carbon-neutrality and managing the transition of our country into an aged-nation,” he added.
On ensuring regulatory agility, it said that to combat unlicensed activities with greater agility, and SC cross-divisional taskforce was established to investigate clone-firm scams.
To date, the SC has undertaken five enforcement actions, 473 regulatory interventions, and put up 275 unlicensed companies and individuals on the SC’s Investor Alert List.
In 2021, the enforcement strategy was focused on achieving swift, effective, and targeted outcomes, with the SC deploying a wide range of enforcement tools.
Through civil enforcement actions, the SC pursued restitution for investors with RM2.7 million resituated to 721 aggrieved investors, while a total of 136 administrative sanctions were taken on misconducts and less serious breaches of securities laws and guidelines.
The SC’s guidance on Self-Reporting in 2021 had paved the way in promoting stronger self-discipline amongst industry players by incentivising self-reporting and early rectification or containment of misconduct. As outlined in the CG Monitor 2021, the SC observed improved corporate governance adoption among PLCs, with adoption rates rising above 90%.
Additionally, it said that 691 PLCs reported having at least one-woman director on the board. The 3-year Corporate Governance Strategic Priorities and updated Malaysian Code on Corporate Governance (MCCG) will set the tone for the development of environmental, social and governance (ESG) leadership, effective stewardship and driving CG excellence.
On promoting sustainability agenda, the SC said that it continued to advance its development initiatives particularly in promoting the sustainability agenda, deepening the RM2.3 trillion Islamic capital market (ICM) and strengthening the SC’s position as a hub for sustainable and responsible investment (SRI).
On charting the future, the SC said that it has launched the Capital Market Masterplan 3 (CMP3) as a strategic framework for the growth of the capital market over the next five years.
The SC’s priorities in 2022 aim towards achieving the CMP3’s desired outcomes of a relevant, efficient, diversified, and inclusive capital market that will enable the Malaysian economy to emerge stronger.
The SC also issued the CG Strategic Priorities 2021-2023, which represents a step forward in advancing board leadership and embedding ESG considerations into domestic corporate practices. Initiatives under these priorities include embedding CG values and culture early amongst youths and SMEs, both critical backbones, for the future of the nation.
To expand the SC’s financial and investment literacy penetration beyond the Greater Klang Valley area, financial education and investor outreach programme initiatives will focus on the underserved segment and silver population through the ‘Agen Bijak Labur Desa’ and ‘Digital Clinics for Urban B40’, to narrow the digital divide and equip vulnerable investors with knowledge on investment risks and opportunities, and tools to identify scams.
In terms of the SC’s internal initiatives, Datuk Syed Zaid said, “From an organisation perspective, the SC will strengthen its internal digital capabilities and skills set to enable the SC’s workforce to harness state-of-the art digital technology for deeper insights and engender efficiency in our risk management, surveillance and supervision functions.
The SC has also embarked on its own journey towards reducing its carbon and environmental footprint, in line with Malaysia’s goal of becoming a carbon-neutral
