KUALA
LUMPUR: Smaller brokerages in Malaysia
will also be able to access Singapore stocks when the link between the two
countries is signed next month.
“We
should have 25 brokerages signed up for the Malaysia/Singapore /Thailand
link,'' Bursa Malaysia CEO Datuk Tajuddin Atan told StarBiz.
“We
will put the framework in place and see how it grows. There will be a bit more
free flow between the exchanges. Earlier, there was a limited number of
companies that can access the Singapore stock market; after the link is signed,
smaller ones also can access these stocks.''
Representing
part of the Asean collaboration, the next link to be established between
Malaysia, Singapore and Thailand is targeted to be signed in August.
“The
total market capitalisation of Asean is US$2 trillion while the market
capitalisation of these three countries will be US$1.3 trillion.
“Different
markets in Asean are at different levels of development. It will take a while
for all the countries to be linked, Nevertheless, the collaboration is alive
and real.''
The
next step is to have an Asean marketing campaign. That will be a joint
promotion where the countries would be profiling their companies and conducting
research.
“Malaysia
is geographically centred in a good place in Asean,'' said Tajuddin. “Among the
key things, we need to be the driver in Asean and play a major role.''
The
members are working on the value proposition of an Asean asset class.
Information
on the 30 top counters in every country is already on an Asean exchange website
showcasing these Asean stars.
It has
been running since last year and is used solely for information on these top
stocks.
The
theme of Invest Malaysia this year is Capitalise on the Asean multinational
marketplace.
Bursa
will be focusing on Malaysia's economic transformation and opportunities, role
as the Asean capital market driver and top companies that have evolved into
multinational companies (MNCs).
Tajuddin
said it might not just be incentives that would spur the capital markets.
“Sometimes, we forget about intangibles, bottlenecks and structures,'' he said.
“We
want to showcase our companies that have now become MNCs,'' he said. “The
overseas revenue of our top 30 FBM KLCI companies now contributes nearly 40% to
their revenue.
“AirAsia
is all over ... Axiata gets revenue from everywhere ... Maybank, CIMB, OSK have
gone regional.
“If we
are not going to profile ourselves, people are going to come and say catch up.'
“We are
not going to do that. I tell the chiefs of companies talk to us and we will
promote you.'
“It
will be a concerted effort. We will put forward the messages a few times and it
will stick to people's mind,'' said Tajuddin.
The
Asean collaboration is the exciting big picture.
“Asean
has gone through financial crisis and worked on corporate goverance and
transparency issues.”
Besides
its market capitalisation of US$2 trillion (which is roughly half the size of
India and China), Asean countries have a population of 600 million and gross
domestic product of US$1.7 trillion.
“The
population of Asean is half that of China. If we collaborate, we can let the
world understand the benefits of the Asean asset class.
“As we
cluster ourselves and realise that this competition is upon us, it is very
clear that we need to up our game,'' he said.
However,
that is easier said than done. It will involve working with other organisations
in the country, looking into any areas of any overlap, the cost of business as
well as other matters that will bring the exchange up further in terms of best
practices.
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