KUALA LUMPUR: While the Malaysian capital market is set to benefit from the projected domestic economic recovery, it is essential for the stakeholders to align focus and assess the impact to deploy different approaches and initiatives that best cater to the market’s needs, said the Securities Commission Malaysia (SC) today.

       Its executive director (Islamic capital market development) Sharifatul Hanizah Said Ali said in doing so, the SC has produced the Capital Market Master Plan 3 (CMP3), a five-year strategic plan for the growth of Malaysia's capital market.

       She noted that the strategic initiatives over the next five years will be guided by key development and regulatory priorities.

       "These strategic thrusts focus on catalysing competitive growth, empowering investors for a better future, and shaping a stakeholder economy, whilst embedding shared accountability, prioritising efficiency, and outcomes, as well as embracing technology,” she said in her keynote address at the ninth Malaysian Financial Planning Council e-Conference today.

       Sharifatul Hanizah said the SC aims to facilitate a conducive environment to support investor empowerment and elevate financial literacy in line with the CMP3.

       She added that the Malaysian capital market has remained resilient with a 3.0 per cent growth to RM3.5 trillion in 2021 from RM3.4 trillion in 2020.

       "Notwithstanding the various challenges brought by the fluctuating economic conditions, the capital market continued to play its critical roles in financing the economy with a notable increase in fundraising activities and encouraging the growth of the overall fund management industry," she said.

       Total funds raised in the capital market remained robust, rising to RM130.9 billion in 2021 -- above the five-year pre-pandemic average of RM121.4 billion.

       Sharifatul Hanizah said it is imperative to raise the bar on professional standards and conduct requirements to enhance professionalism in the financial planning industry.

       She added that the SC issued Guidelines on Conduct for Capital Market Intermediaries on April 1, which also applies to licensed financial planners to foster good business conduct and a good corporate culture that is centred on the fair treatment of clients and to promote trust in all intermediaries.

       Sharifatul Hanizah said while regulation can play a role to promote the right culture, the industry must also continue to shape the right behaviours within their own organisations.

       "To this end, it is commendable to see the industry’s harmonisation and elevation of the code of ethics and best practice standards by the relevant certification associations,” she added. - Bernama