The Third Capital Market Masterplan

The Securities Commission Malaysia (“SC”) on 21 September 2021 launched the third Capital Market Masterplan (“CMP3”) which will serve as a strategic framework for the growth of the capital market in Malaysia over the next five years and aims at ensuring that the following desired outcomes are achieved by the capital market:

Grows in relevance with the upgrade of the economy and its stakeholders;
Efficient in capital mobilisation, accompanied by evolved regulatory approach; and
Diversified, competitive and differentiated to create value for diverse participants.

Pursuant to the CMP3, to achieve the desired outcomes, the strategic initiatives over the next five years will be guided by six key development and regulatory thrusts/priorities.

The three key development thrusts aim to facilitate a capital market that:

Catalyses competitive growth with greater fundraising efficiency for companies across their business lifecycle, enabled by competitive markets and intermediation;
Empowers investors for a better future with accessible and quality investment advice and greater diversity for emerging needs through a digitally inclusive ecosystem; and
Shapes a stakeholder economy with sustainable and responsible investment and Islamic capital market with effective capital mobilisation through Sustainable and Responsible Investments and Islamic Capital Market solutions to sustainable, responsible and stakeholderoriented businesses.

In conjunction, the SC has also set out three key regulatory thrusts to enable a regulatory approach that:

Embeds shared accountability in the capital market to promote responsible businesses, industry selfregulation and investor advocacy, underpinned by principles-based regulations;
Prioritises efficiency and outcomes in protecting investor vulnerabilities, with a fit-for-purpose regulatory architecture as well as effective supervisory and enforcement approach; and
Embraces the digital age with the industry, as they navigate through forward-looking regulatory technology and emerging technology risks, while enhancing the SC’s digital capabilities.

Read more about the CMP3, please refer to https://www.sc.com.my/cmp3 .