In his keynote address at FIMM annual conference, Securities Commission Managing Director Datuk Kamaruddin Hashim said over the past 20 years, the asset management industry has grown steadily as reflected by the growth of the assets under management by more than 11 times to RM 906.5 billion in 2022 (from RM 79.8 billion in 2003).
He said this reflects the significant contribution of this industry to the Malaysian capital market in widening ownership of assets and generating returns on long-term savings.
The industry AUM has grown to RM 964.8 billion in August 2023, surpassing the 2022 and 2021 levels despite the volatility seen in markets globally this year.
Moving forward, the performance of the capital market, including the fund management industry, will continue to hinge upon key global and domestic developments, notably geopolitical developments, global monetary conditions and trade, and corporate earnings.
SC has acknowledged the need for greater guidance for capital market constituents in determining what qualifies as sustainable and as such, released the Principles-based Sustainable and Responsible Investment Taxonomy for the Malaysian Capital Market (SRI Taxonomy) last year. Its aim is to provide a clearer classification of economic activities eligible
for sustainable investment. With the release of the SRI Taxonomy, the SC will proceed to the next phase of its development with more granular and detailed guidance.
The Commission also conducted a survey to chief executives of the fund management industry this year to extract insights to steer our thinking for focused policy development that will continue to catalyse innovation across the industry.
The survey findings underscore the need to ensure competitiveness and sustainability of industry’s value proposition. Ultimately, this will empower investors by providing them with a more diverse array of options across the risk-return spectrum. To support this, we also understand the need for capacity building and development of talent through regionalisation of fund management.
Digital channels provide opportunities to enhance efficiency as well as widen access to products and services. In this respect, the survey findings underscore the need for the integration of electronic Know Your Customer (e-KYC) protocols within the industry. Aimed at enhancing the investor on-boarding experience and broadening access, the SC via the ‘Fund Management
Industry Digitisation Group’ or FMDG will explore feasibility of eKYC on a blockchain.
As a next step, FMDG will gauge interest for participation in a pilot project with selected industry participants. The use of blockchain can simplify and streamline the KYC process by allowing the sharing of verified investor information among participating FMs.
