KUALA LUMPUR (Sept 21): The new Capital Market Masterplan 3 (CMP3) has outlined strategic initiatives over the next five years that will be guided by six key development and regulatory priorities to transform Malaysia's capital market.

These strategic thrusts focus on catalysing competitive growth, empowering investors for a better future and shaping a stakeholder economy, while embedding shared accountability, prioritising efficiency and outcomes, as well as embracing technology, according to Securities Commission Malaysia (SC) chairman Datuk Syed Zaid Albar in the introductory remarks of the CMP 2021-2025, which was unveiled today.

Syed Zaid said these priorities are aimed at ensuring that the capital market is relevant, efficient and diversified to realise a capital market and supportive ecosystem that work for the collective benefit of all.

To remain relevant so that it can better serve the economy and investors of the future, the capital market must continuously innovate, he said. Alongside public markets, private markets must also grow in tandem to support businesses, which will be key to not only lift incomes and drive prosperity, but ensure the nation's growth trajectory is sustainable and equitable, he said.

“This calls for intermediaries and service providers to be responsive to the needs of tomorrow’s businesses and investors in order to tailor the appropriate market solutions for them to prosper and grow,” he added.

The capital market should also lead in terms of providing efficient and reliable infrastructure and services because more seamless integration and automation across the market value chain will raise the bar for fundraising and investment experience.

"The provision of real-time disclosures and information, along with a more bespoke investment approach across products and market segments, will also serve to expand investment capabilities and literacy. This speaks to technology and cost-effective methods in upgrading processes and addressing impediments, among others. Complementing these will be a fit-for-purpose regulatory architecture that evolves in line with changing trends and behaviours," he said.

And lastly, having a diversified market ecosystem is a prerequisite to strengthen Malaysian capital markets' overall competitiveness.

"Infusion and renewal of market intermediaries, platforms and service providers can help raise the level of market sophistication and depth to create enduring product and service offerings. In order to compete and prosper, market participants will be given the space and opportunities to innovate and evolve. Consequently, this also means that they must step up and take on added responsibilities and greater accountability," he explained.

Achieving these desired outcomes requires every stakeholder to prioritise high standards of care, diligence and governance across all products and market segments, he said.

"Intermediaries and service providers will also need to integrate agility and flexibility into their work processes. This must be supported by effective management of risks, better capital and resource utilisation, as well as a greater emphasis on talent and innovative skill sets,” he added.

To achieve these, a corporate culture that values integrity and transparency will help as it strengthens confidence in the market's ability to deal with emerging challenges and risks, he noted.

Market stakeholders should also be prepared to adopt more socially conscious and purposeful mindsets as part of their philosophies and values.

"Looking ahead, listed entities and other market participants will be expected to be ever more mindful of their wider impact on society, local communities and the economy. The hallmark of the capital market of the future will be that benefits are sustainable and accrue to the many," he added.

Read more stories about the Securities Commission's Capital Market Masterplan 3 (CMP3) here.