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Malaysian capital market grew to MYR 2.76 trillion in 2014.

The Malaysian capital market grew to MYR 2.76 trillion in 2014, equivalent to 2.6 times the size of the Malaysian economy, and remained resilient in an environment of global uncertainties, said the Securities Commission Malaysia (SC) in conjunction with the release of its annual report.

The capital market continued to be an important source of financing for the economy, with MYR 91.9 billion raised through initial public offerings and private debt securities (PDS). Capital-raising exceeded MYR 90 billion for the third consecutive year, illustrating the capital market's deepened capacity to meet Malaysia's real economy financing needs.

Malaysia affirmed its global leadership in the Islamic capital market, having grown at an average of 12 per cent per annum over the last five years to MYR 1.59 trillion in 2014, accounting for 58 per cent of the capital market. By end-2014, 74 per cent of Malaysian listed companies were classified as shariah-compliant with market capitalisation of more than MYR 1 trillion. Malaysia also retained its position as the largest sukuk market in the world, accounting for 66 per cent of global issuances.

Fund management continued to be the fastest-growing market segment with assets under management (AUM) surpassing the 600-billion ringgit milestone for the first time to reach MYR 630 billion (+7.1 per cent) by year end. Islamic AUM grew to MYR 111 billion from MYR 98 billion in 2013, reflecting the industry's ability to develop under Malaysia's facilitative Islamic capital market environment.

Growth was driven by the expansion of channels for managed investments, with the net asset value of the unit trust industry growing to MYR 343 billion - the largest in Southeast Asia. The nascent Private Retirement Schemes (PRS) segment, which more than doubled its AUM and membership to MYR 716.1 million and 128,977 members respectively, forms the third pillar of Malaysia's pension framework and is poised to become an area of future growth in the investment management industry.

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Publication:CPI Financial
Geographic Code:9MALA
Date:Mar 5, 2015
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