The Securities Commission Malaysia (SC) has held an industry dialogue to deliberate the implementation of the capital market directives announced during the launch of the ‘Ekonomi MADANI’ initiative by Malaysian Prime Minister and Minister of Finance Anwar Ibrahim on the 27th July this year.
Announced late last month in the buildup to the upcoming state elections to be held on the 12th August, the ‘Ekonomi MADANI’ framework seeks to combat the “vicious cycle of high costs, low wages, low profits and a lack of competitiveness” that plagues the Malaysian economy.
The SC’s industry dialogue focused on the three capital market measures announced by the prime minister, namely the reduction of the current board lot size for trading on Bursa Malaysia to a more affordable level; enabling fractional share trading by investors through stockbrokers; and enabling automatic transfer for companies listed on Bursa Malaysia’s ACE Market to the Main Market.
“By continuing to collaborate with various stakeholders, the SC can leverage on its expertise to drive the required reforms and improvements towards strengthening the Malaysian capital market’s vibrancy, inclusivity and competitiveness,” Dr Awang Adek Hussin, the chairman of the SC, remarked.
Measured against seven indicators, the government’s new framework seeks to elevate the Malaysian economy to the top 30 globally in the next decade and see the labor share of income reach 45% of total income, among others.
The first focus of the framework, which is to establish Malaysia as a leading Asian economy, will see the government solidify its position as a global leader in the Islamic economy as well as leverage green initiatives to support climate-resilient growth and promote land use and food security.
“Even though Islamic finance has been established for a long time, we need to transition toward something more sustainable and effective. In other words, we should move from not only Halal but beyond that, to embrace Halal and Tayyib principles,” Anwar commented.
According to the prime minister, efforts have begun through Bank Negara Malaysia and the SC to enable the Halal and Tayyib concept to flow through the Malaysia International Islamic Financial Centre in collaboration with the Islamic financial industry and ecosystem, including Zakat and Waqf boards, the banking system and the Islamic stock and Sukuk markets.
The ‘Ekonomi MADANI’ framework served as the foundation for the National Energy Transition Roadmap (NETR) announced on the same day as well as the New Industrial Masterplan 2030, which is expected to be launched this month, and the Mid-Term review of the 12th Malaysia Plan scheduled to be tabled in October this year.
Notably, ISFI previously reported that the initiative under the NETR to develop Southeast Asia’s largest hybrid solar photovoltaic power plant, which is one of 10 initiatives under the first phase of the NETR, will be financed through Islamic instruments.
The latter of the twin focuses under the framework is to elevate the quality of life for the Malaysian populace. Among others, this focus will see the government review the minimum wage level and introduce new laws to guarantee a safe and comfortable working environment.
Also under the umbrella of wage reform, the Ministry of Economy and the Ministry of Human Resources are currently exploring a progressive wage model toward achieving more comprehensive income growth.