Malaysia to liberalise policy on stockbroking industry to spur greater innovation

Syed Zaid Albar

KUCHING, July 7: Malaysia will liberalise policy on the stockbroking industry in order to encourage more innovation in the financial market.

The Securities Commission Malaysia (SC) in a press statement today said it will facilitate the entry of innovative stockbroking models with differentiated value propositions to spur greater innovation, create greater diversity among market participants and enhance value for investors.

SC said the announcement was made by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz at the 16th Invest Malaysia, held virtually for the first time today.

Thus, the capital market regulator said it will be working in tandem with Bursa Malaysia to enable a facilitative market structure, allowing for more flexible business models with greater efficient capital structure through the separation of trading and clearing memberships on the stock exchange.

SC chairman Datuk Syed Zaid Albar said that the Covid-19 pandemic has forced governments, regulators and industry players alike to reflect on the current landscape and systems, so that the financial market and the economy can rebuild for a more resilient, sustainable and inclusive future.

“The Malaysian investor population has grown to be a lot more diverse, and technological advancements have changed the way investors interact with the capital market.

“It is important that our industry also evolves to meet the diverse needs of investors.

“These can be in the form of digital-only brokers that can cater to investors looking for no-frills services, or for example, algorithmic trading platforms or multi-asset brokers for more sophisticated investors,” Syed Zaid Albar said. —DayakDaily