Bursa Malaysia

Pin Menu

Click here to unpin menu.
You're here: Corporate » Home » Sustainability » Our Material Factors

Our Material Factors

While we monitor, manage and report on a wide variety of issues, key to our approach is focusing our resources on material sustainability risks and opportunities that are associated with each material factor. This allows us to best meet stakeholder needs and ensure the long term success of our business.

Our Material Factors

To determine our material sustainability matters (namely, material sustainability risks and opportunities), we undertook a materiality assessment in 2016. The list of material sustainability factors were reflected in Bursa Malaysia's Sustainability Statement and Report 2016. In order to ensure our material sustainability factors identified in 2016 remained relevant and material to our business and stakeholders, a validation of the material sustainability factors was conducted with a wider group of stakeholders in 2017 via an online survey. A large majority of the stakeholders surveyed agreed with the material factors that we outlined. For more details of our materiality assessment, please read our Sustainability Report, which is available here.

MATERIAL FACTORSDESCRIPTIONWHAT ARE THE RISKS?WHAT ARE THE OPPORTUNITIES?

COMPETITION

Bursa Malaysia is exposed to competition in our securities, derivatives and Islamic markets from regional and global exchanges for both investment and capital raising purposes.

  • Lack of liquidity in the marketplace may hamper the attractiveness of our markets, which in turn may drive issuers to list on other exchanges, and investors to invest in other markets

  • Foreign fund inflows could be curtailed by the presence of more competitive offerings and ecosystems in other exchanges

  • A facilitative regulatory framework that addresses ecosystem issues will enhance competitiveness of our platform for fundraising and product issuance. This will attract domestic and regional investors as well as issuers to our markets

  • Comprehensive marketing together with intermediaries to attract more investors into our markets

  • Innovative products and an investor-friendly ecosystem could be offered to entice investors with different investment strategies and risk appetites to invest in our marketplace

  • Regional partnerships and collaborations (especially in product development and market connectivity) could be established to extend our global market reach


MARKET INTEGRITY AND STABILITY

A well-regulated market, supported by an effective and balanced regulatory framework that provides adequate levels of investor protection while facilitating business efficacy and innovation, is imperative for the continued growth and development of our markets.

  • Any event - such as breaches in regulation, poor corporate governance (CG) practices - that undermines integrity or stability will influence stakeholder confidence, and possibly participation, in the market

  • Overregulation can increase the cost of compliance and create impediments to the market and in particular, public listed companies and intermediaries to develop and innovate

  • A poor CG and sustainability culture, can lead to a lack of transparency and poor CG and sustainability practices

  • Having a robust approach to ensure the integrity and stability of the market serves to engender trust and confidence, which in turn encourages participation and growth

  • Fostering a strong CG and sustainability culture will also drive long-term value, both in the market and within Bursa Malaysia


TECHNOLOGY

Technology is both a key enabler as well as a potential source of significant disruption to our business model in the long run. It ensures the resiliency and reliability of the market infrastructure, while bringing efficiencies and innovation for market participants.

  • Technology is essential to maintain service availability and reliability by preventing any disruption to our business and the market

  • A growing dependence on technology means greater exposure to the risks of cyber threats. Furthermore, strong data protection measures are needed to ensure our systems run efficiently and productively

  • With the growing demand for digital, mobile and customer friendly solutions in the market, staying abreast of technological trends and developments enables us to provide the best service as an integrated exchange

  • Technology can enable crossborder activities and improve connectivity with partner exchanges


TALENT

Bursa Malaysia plays various specialized roles as a frontline market regulator, market operator, and public listed company. Therefore, acquiring and developing the best talent is central to our growth and success. This makes strategies for the recruitment, development, engagement and retention of our employees crucial to steer our organisation towards meeting our goals and aspirations.

  • Operating in a highly specialized industry, attracting and retaining the best talent to ensure we can continue to perform and meet our objectives can be a challenge

  • Furthermore, for critical and leadership roles, succession planning is vital to our long-term performance as a company

  • A poor CG and sustainability culture, can lead to a lack of transparency and poor CG and sustainability practices

  • Creating an engaged and energized workforce with shared valuesrowth

  • Having a diverse workforce, with a mix of perspectives and backgrounds that represents society, will best position us to navigate our operating environment

  • Cultivating a learning culture within the organisation to ensure our talents are 'future-ready' and able to meet evolving market needs