Islamic
Capital Market (ICM)
Malaysia is the first Islamic country that has its Exchange
(Bursa Malaysia) demutualised and listed on the market. Bursa Malaysia was listed on 18 March 2005
and represents a single consolidated group which comprises equities (Main Board, Second Board and
MESDAQ Market), derivatives and offshore markets.
Bursa Malaysia and the capital market in Malaysia have several market attractiveness, such
as:
Liberalisation of foreign participants.
Liberalisation of foreign exchange control where
non-residents are free to invest in Malaysia in any form. Non-residents may obtain financing from
licensed onshore banks (licensed commercial and Islamic banks in Malaysia) both in ringgit and
foreign currency. They are also able to enter into foreign exchange contracts with licensed onshore
banks to actively manage their exchange risk exposures arising from their ringgit investments.
Non-residents are free to exchange their foreign currency into ringgit and vice versa of any amount
as well as repatriate their capital, profits and income earned from Malaysia in foreign
currency;
Since 1998 to 2006, the number of listed companies
grew to 40% from 291 to 1027. Market valuation touched RM 854 billion (USD 242 billion) in
2006;
There are 235 listed companies with market
capitalisation above USD 100 million, testifying to the growing depth of the market;
There is diversity in investors demography. About
16% of shares listed on Bursa are foreign owned and foreign trades make up around 34% of overall
value in daily trading; and
Bursa Malaysia adopts the best corporate
governance practices, e.g. mandatory quarterly reporting, mandatory director training, one-third of
the board comprising independent directors.
(Note: Statistics as at end-December 2006).
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