Bursa Malaysia is one of the largest bourses in ASEAN. They operate and regulate a fully integrated exchange, offering a comprehensive range of exchange-related facilities, including listing, trading, clearing, settlement, and depository services. Is Malaysian knowledgeable enough about Bursa Malaysia?
What is “Bursa Malaysia”
Bursa Malaysia Berhad is a brand new name changed from Kuala Lumpur Stock Exchange following a demutualization exercise, the purpose of which was to enhance its competitive position and respond to global trends in the exchange sector by making the exchange more customer-driven and market-oriented.
Bursa Malaysia had made a number of achievements, grown with, and witnessed the economic development of Malaysia.
How Organization Works?
Bursa Malaysia exposes the pulse of diversified opportunities for those seeking to expand or invest with impact.
As an inclusive marketplace, Bursa Malaysia provides easy access to many investment products and services, connecting domestic and foreign market participants to all types of opportunities to help them expand or invest with impact.
Bursa Malaysia’s diverse product range includes equities, derivatives, offshore, and Islamic assets, as well as exchange-traded funds (ETFs), real estate investment trusts (REITs), exchange-traded bonds, and sukuk (ETBS).
Bursa Malaysia and Its Functions
Among the other functions that fall under Bursa Malaysia’s jurisdiction are include enforcing regulations. Its principal activities include treasury management, along with the provision of management and administrative services for its subsidiaries. The stock exchange is within its rights to carry out the following actions:
- Impose reprimands and fines
- Approve listings
- Approve security quotations
- Supervise listed companies
- Supervise stock broking activities
- Oversee the admission to the exchange’s membership
- Regulate disclosures which are listed by companies.
- Provides facilities and infrastructure for capital raising
Bursa Malaysia also fulfils its responsibility of encouraging investor confidence by ensuring efficient, cost-effective, fair, and orderly market operations are carried out.
There are 4 main segments in which Bursa Malaysia Operates:
- Securities Market
- Depository services
- Provision and dissemination of information which relates to equity securities quoted on the securities exchange
- Derivatives Market
- Depository services
- Provision and dissemination of information which relates to derivative products quoted on the derivatives exchange
- Exchange Holding Company
- Refers the company’s operations and function as an investment holding company
- Shariah compliant commodity trading platform
- Reporting platform for bond traders
- Provision of exchange for offshore markets
Currently where Bursa Malaysia standing in ASEAN as stock exchange giants
Bursa Malaysia is an exchange holding company incorporated in 1976 and listed in 2005. One of the largest bourses in ASEAN, Bursa Malaysia helps over 900 companies raise capital, whether through the Main Market for established large-cap companies, the ACE Market for emerging companies of all sizes, or the LEAP Market for up-and-coming SME companies.
Bursa Malaysia is globally recognised as the best, most innovative exchange in Shariah investment—a distinction earned from pioneering various innovations in Islamic finance, such as Bursa Malaysia-i, the world’s first end-to-end Shariah investing platform, and Bursa Suq-Al-Sila’, the world’s first end-to-end Shariah-compliant commodity-trading platform. Bursa Malaysia is also the world’s biggest palm oil futures trading hub. Our Crude Palm Oil Futures (FCPO) contract has long been recognised and referenced as the global price benchmark for the palm oil industry.
Bursa Malaysia was the first emerging market to introduce the globally benchmarked FTSE4 Good Bursa Malaysia Index in 2014, which measures the performance of companies demonstrating good environmental, social, and governance (ESG) practices. In 2015, Bursa Malaysia joined the United Nations Sustainable Stock Exchanges (SSE) initiative, strengthening our commitment to promoting sustainable strategies among our issuers and the marketplace.
Ranking of Bursa Malaysia among ASEAN stock exchanges
Bursa Malaysia has been ranked 2nd among ASEAN stock exchanges in a recent report released by Corporate Knights, “Measuring Sustainability Disclosure: Ranking the World’s Stock Exchanges 2019”.
First commissioned by Aviva Plc in 2012, the annual report tracks corporate disclosure on seven sustainability indicators. Bursa Malaysia was outperformed by the Stock Exchange of Thailand, but it surpassed performance by the Singapore Exchange (SGX), Philippine Stock Exchange (PSE), Indonesia Stock Exchange (IDX), and Ho Chi Minh Stock Exchange.
- Bursa Malaysia
- 3E Accounting Firm Malaysia
- The Star