KUALA LUMPUR: The Securities Commission (SC) remains unwavering in its resolve to strengthen the regulatory framework and uphold integrity as it continues to take measures against global regulatory standards. 

Chairman Datuk Seri Dr Awang Adek Hussin said emerging challenges can be addressed by fostering partnerships with industry stakeholders as well as local and international regulatory bodies. 

He noted that Malaysia will be subjected to the Financial Action Task Force evaluation exercise in 2025. 

"Additionally, regular dialogues and knowledge sharing initiatives will enable us to stay abreast of global best practices and adopt these into our regulatory framework accordingly. 

"We will also invest in talent development and retention. Programmes such as investED, which was launched by Prime Minister Datuk Seri Anwar Ibrahim, are currently underway to cultivate the next generation of capital market leaders. 

"As we continue to nurture talent, it is crucial to provide opportunities for continuous learning and skill enhancement. This is to be achieved through collaborations with educational institutions and industry experts, offering specialised courses tailored to the needs of the industry," he said in the SC's Annual Report 2023. 

The capital market grew by 5.6 er cent to RM3.8 trillion in 2023 from 2022, driven largely by a vibrant bond market. 

The fund management industry also contributed to the resilience of the Malaysian capital market, with total assets under management (AUM) hitting a new high of RM975.5 billion, up sharply from RM906.5 billion in 2022 and even higher than RM951.1 billion recorded in 2021. 

However, just as with most markets in the region, the equities market did not perform as well in 2023 due to global headwinds. 

The FTSE Bursa Malaysia KLCI (FBMKLCI) declined by 2.73 per cent during the year. 

"We recognise that better time-to-market is crucial for businesses or products to successfully time their market entry. This will promote market dynamism, mitigate the risk of missed opportunities, and improve cost effectiveness for businesses. 

"We have rolled out several initiatives to support this goal. They include the Focused Scope Assessment (FSA) for new and eligible Capital Market Intermediaries (CMI) and Recognised Market Operators (RMOs). 

"The FSA halves the licensing and registration processing time to three months for identified activities while improving the quality of submissions. 

"As for companies going for listing on the Main Market, we have enhanced our processes to improve our turnaround time to three months," he added. 

The regulator is also focusing on clearer delineation of key market segments as part of the SC's ongoing public market review. This includes the new accelerated transfer process from the ACE to the Main Market for eligible ACE Market companies. 

Awang Adek said companies need to do more than pay lip service to sustainability and corporate governance if these practices are to become firmly entrenched within the boards of listed companies in Malaysia. 

The introduction of the Leading for Impact Programme (LIP) for directors of public companies was meant to enhance their corporate governance and sustainability practices.

"The SC remains serious about advancing Malaysia's capital market and support its transition towards a low-carbon economy. Following the introduction of the Principles-Based SRI Taxonomy for the Malaysian Capital Market in December 2022, we are working on the SRI Taxonomy Plus-Standards to improve clarity when identifying economic activities," he said. 

In maintaining the integrity of the market, the SC views breaches of security laws very seriously. In early 2024, it initiated criminal proceedings against individuals involved in alleged money laundering offences totalling RM183.5 million. 

"Currently, we are dealing with 32 cases in various stages of legal proceedings. Through successful civil suits and  regulatory settlements, we have identified RM4.5 million for restitution. 

"Our aim is to ensure that investors are empowered with the necessary information and education to make informed decisions.

"We need a proactive strategy to address the growing threats of investment scams and unlicensed activities. Towards this end, the SC is also establishing a dedicated unit to enhance its effectiveness in combating financial scams. However, as much as we take up the cudgels on their behalf, investors must also exercise caution and take ownership of their investment decisions," added Awang Adek.

https://www.nst.com.my/business/corporate/2024/03/1030085/sc-continues-take-measures-against-global-regulatory-standards